Model Agriculture Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 or also known as Model Contract Farming Act, 2018
Objectives of Model Agriculture Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018
1 . To integrate farmers with bulk purchasers including exporters, agro- industries etc. for better price realization.
2 . Mitigation of market and price risks to the farmers.
3 . Ensuring smooth agro raw material supply to the agro industries.
Salient features of the Act
1 . The Act lays special emphasis on protecting the interests of the farmers, considering them as weaker of the two parties entering into a contract.
2 . In addition to contract farming, services contracts all along the value chain including pre-production, production and post-production have been included.
3 . “Registering and Agreement Recording Committee” or an “Officer” for the purpose at district/block/ taluka level for online registration of sponsor and recording of agreement provided.
4 . Contracted produce is to be covered under crop / livestock insurance in operation.
5 . Contract framing to be outside the ambit of APMC Act.
6 . No permanent structure can be developed on farmers’ land/premises.
7 . No right, title of interest of the land shall vest in the sponsor.
8 . Promotion of Farmer Producer Organization (FPOs) / Farmer Producer Companies (FPCs) to mobilize small and marginal farmers has been provided.
9 . FPO/FPC can be a contracting party if so authorized by the farmers.
10 . No rights, title ownership or possession to be transferred or alienated or vested in the contract farming sponsor etc.
11 . Ensuring buying of entire pre-agreed quantity of one or more of agricultural produce, livestock or its product of contract farming producer as per contract.
12 . Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village / panchayat at level provided.
13 . Accessible and simple dispute settlement mechanism at the lowest level possible provided for quick disposal of disputes.
14 . It is a promotional and facilitative Act and not regulatory in its structure.
PRACTICE QUESTIONS
QUES 1 . Which among the following is/are incorrect with respect to Model Contract Farming Act, 2018
1 . Contract framing to be within the ambit of APMC Act.
2 . Contracted produce is to be covered under crop / livestock insurance in operation.
3 . Permanent structure can be developed on farmers’ land/premises.
Select the correct answer from the following:
a . 1 & 2
b . 1 & 3
c . 2 & 3
d . 1 , 2 & 3
Answer – b
QUES 2 . Consider the following statements regarding Model Contract Farming Act, 2018
1 . Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at district level provided.
2 . Promotion of Farmer Producer Organization (FPOs) / Farmer Producer Companies (FPCs) to mobilize small and marginal farmers has been provided.
Which among the above statements is/are correct?
a . 1 only
b . 2 only
c . Both 1 and 2
d . Neither 1 nor 2
Answer –b
