AgroSpectrum - November 2022

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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.

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.

10+ mins

Govt Intervention In Rice Exports: A Bane Or Boon?

As a temporary measure, in September, 2022, India banned export of broken rice and imposed a 20 per cent export duty on non-Basmati rice except for parboiled rice to boost domestic supplies amid a fall in area under paddy crop in the current kharif season. AgroSpectrum spoke to the industry leaders on pros and cons of this action, which the government has undertaken for food security concerns of the country keeping in line with the achievement of SDGs (Goal 2: Zero hunger).

6 mins

“The Centre can increase its focus on strengthening the institutions of farmers and not the market institutions per se”

Post the repeal of the farm laws last year, the centre was tasked with forming of a committee to give suggestions on making minimum support price (MSP) more effective, giving more autonomy to the Commission for Agricultural Costs and Prices (CACP) and pursue measures to strengthen the agricultural marketing system. So far, the committee has conducted two meetings and created subgroups to examine the important issues hindering the business of agriculture. In an interaction with AgroSpectrum India, Vijay Sardana, a renowned techno-legal advisor on agribusinesses in India, explains the key dimensions of agriculture along with the action points that such committees should undertake.

6 mins

The two-day 13th Biennial AgriCorp Conference 22

There is a need to move towards precisionbased farming: Prof. Ramesh Chand

6 mins

How Technology Helps Agri Retailers Build a Competitive Edge

Agriculture, as we all know, is crucial to our sustenance, as it forms the foundation of our lives. Today, we cannot fathom an existence without agriculture, the primary source of our food, and given the growing population, the food requirements are only increasing further.

2 mins

Challenges of the Millets Industry

Post-pandemic we saw a paradigm shift in consumer choices and behaviour. People have changed, and the government is forced to act for better food quality, agricultural practices, technological advances and developing systems for ease of doing business.

4 mins

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AgroSpectrum Magazine Description:

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.