The government wants to frame a model code of conduct for contract farming for agriculture produces such as vegetables, fruits, flowers, medicinal plants, pulses, oilseeds, sugarcane, cereals and cotton.
The move, the government thinks, will ensure that farmers are not placed under any disadvantageous position vis-a-vis companies, which are contracting these farmers.
One of the options, proposed by the agriculture ministry, is that of a direct contract between the producer and purchaser, with the government as third party for intervention in the case of legal disputes. The government is of the view that this is more advantageous to small farmers than indirect contract through intermediary agencies.
Sources said direct contracts would ensure assured and remunerative marketing opportunities to farmers.
At the moment, the Central and state governments through organisations like Food Corporation of India (FCI) and National Agricultural Cooperative Marketing Federation of India (Nafed) etc, ensure the operation of the MSP announced by the Government.
?Contract cultivation based on a well-defined Code of Conduct will be helpful to small producers in getting good quality input, a fair price and prompt payment for their produce,? said the source.
At the state level, a monitoring committee comprising farmers and officials may be set up to ensure the spread of a non-exploitative pattern of contract cultivation.
Moreover, the government is also working out ways to strengthen procurement, storage and distribution of food grains. There are also plans to increase the support to Food Corporation of India (FCI) to augment its storage capability of various foodgrains.
It is also evaluating a proposal to review the role of the State Agriculture Produce Marketing Committee Acts relating to marketing, storage and processing of agriculture produce. The proposal include changing the role of agriculture product marketing committees from regulation to grading, branding, packaging and development of domestic and international markets. Concerned over the food security of the country, the government is embarking on a massive mission aimed at boosting the production and stock of rice, wheat and pulses.
As per the plans proposed, the government plans to bolster the buffer stock of the three food grains by importing as well as increasing the acreage of cultivation.
