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Do CONTRACT FARMING Advantages Outweigh Concerns?
Contractual agreements between the farmers and agribusiness companies have gained
immense momentum in many developing countries including India. Besides ensuring
economies of scale, contract farming facilitates access to technology, capital and quality
inputs for the farmers. Consequently, the arrangements hold much significance given that
agriculture accounts for 16 per cent share in India’s GDP against its 4 per cent share in
world GDP and 55 per cent of the country’s population is dependent on it. However, there
are a number of business and legal challenges plaguing the commercial agreements
between the sponsoring companies and the farmers. Enforceability of contracts by
either party is a worrisome aspect that calls for immediate attention from the various
stakeholders. The centre announced the Model Agricultural Produce and Livestock
Contract Farming Act 2018 with a view to address such discrepancies. The primary
purpose was to legi$mate contract farming in India which has been largely based on the
provisions of Indian Contract Act 1872. AgroSpectrum India digs deeper into the contract
farming landscape to uncover the complexities and benefits.
AgroSpectrum Magazine Description:
الناشر: MM Activ Sci-Tech Communication
فئة: Business
لغة: English
تكرار: Monthly
Agrospectrum is a B2B digital media platform catering to all sub-sectors and verticals of the agro business – from food grains to inputs, machinery, live-stock, fisheries to agro tourism. It regularly updates on latest news on Agri—business and analytical & informative articles targeted at agro industry and business leadership, key decision makers; R&D, policy makers, academia and farmers’ community leaders. The portal is devoted to agriculture related business and not farming activity. It neither informs nor guides the farmers on direct farming, but handles allied and peripheral areas of agriculture related activity called agriculture business.
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