With a view to integrate farmers with bulk purchasers including exporters, agro- industries etc. for better price realisation through mitigation of market and price risks to the farmers and ensuring smooth agro raw material supply to the agro industries, Union Finance Minister in the budget for 2017-18 announced preparation of a “Model Contract Farming Act” and circulation of the same to the States for its adoption. Farmer’s producer organisations (FPO’s) have a major role in promoting Contract Farming and Services Contract. On behalf of famers they can enter into agreement with the sponsor.
The final Model Act “The ….State/UT Agricultural Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act 2018” has been approved by the Competent Authority and was released on 22 May 2018 at Vigyan Bhawan, New Delhi by Radha Mohan Singh, Union Agriculture Minister. He also released a book titled “Intrapreneurship and Management for Farmer Producer Companies” prepared by Grant Thornton.