The Tamil Nadu government has on Tuesday announced that it has enacted a seperate law on contract farming, which will not only encourage small farmers to join hands together but also protect the farming community, particularly marginal farmers, from any untoward challenges as well ensure fair price even in case of excess supply into the markets.
Claimed to be the first state in India to enact a law on the lines of Union government, the Tamil Nadu Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation Bill), 2019, has received the President’s approval and accordingly, the state government has published a gazette in this regard, said a press release from the state Secretariat.
Contract farming is one of the strong tools to pool in small farmers into a collective operational unit to not only get better price but also achieve scale of economy. The bill will make contract farming more transparent, easier and successful and shall have the powers of a civil court in specified areas.
With this law, a farmer or a group of farmers, will get good/actual price of their produce even in case of excess supply post harvest. This law will also encourage the farming community to go for higher production with the technology support/assistance provided by the sponsors/buyers or food processing companies of their produce. The farmers will get the exact/fair price from the sponsors/buyers as agreed on the day they signed agreement with the latter before pre-cultivation.
As per this law, the buyers/sponsors who have entered into an agreement with the farmers/farming community will have to register themselves with the local agricultural commissioners and also should register the documents they have entered into with the farmers/farming community before pre-cultivation time. It helps farmers/farming community from selling at distress price owing to excess supply or any untoward challenges, the release said.
Equally, the food processing industry will benefit by getting quality produce from the farming community directly at their terms and conditions. A good relationship between themselves and the farming community also been ensured on a long-term basis through their technological support and other assistances.
The bill also ensures farmers with a safeguard law to get their actual price when the buyers or food processing company/companies violate their agreements entered into with them. Committees will be set up to sort out issues, arising out of violation, at the district as well state level, the release said further.
To make it practical as well functional, the chief minister has asked the officials of the agricultural department to bring out a suitable law/norms at the earliest.
