Business Today - - CONTENTS -

FIF­TEEN YEARS af­ter the Model Con­tract Farm­ing Act, the gov­ern­ment has again for­mu­lated a model law for the states. The State/UT Agri­cul­tural Pro­duce and Live­stock Con­tract Farm­ing and Ser­vices (Pro­mo­tion and Fa­cil­i­ta­tion) Act, 2018, is far more com­pre­hen­sive than the ear­lier one. Ver­sion 1 failed to take off in most states; Ver­sion 2, how­ever, cov­ers the en­tire farm­ing uni­verse, in­clud­ing con­tract farm­ing and ser­vices con­tracts across the value chain. The bu­reau­cratic mandi sys­tem, a key rea­son why the ear­lier ver­sion failed, has been by­passed en­tirely. The new law will al­low big re­tail­ers to work di­rectly with farm­ers and help cre­ate a sus­tain­able ecosys­tem. It should bring far more pre­dictabil­ity to the sup­ply chain and in the process, a steady and pre­dictable in­come to the farmer.

- Joe C. Mathew

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