Niti Aayog prepares model law for contract farmers

The law is meant to connect farmers to the food processing industry

Government's premier think-tank Niti Aayog is preparing a model contract farming law to connect farmers with the food processing industry.

"Niti Aayog is preparing a model contract farming law that would connect farmers to the food processing industry," Niti Aayog Vice-Chairman Arvind Panagariya said on Facebook.

Finance Minister Arun Jaitley in his Budget speech had said: "We also propose to integrate farmers who grow fruits and vegetables with agro-processing units for better price realisation and reduction of post-harvest losses. A model law on contract farming would, therefore, be prepared and circulated among the states for adoption."

To a separate query, Panagariya pointed out that part of the 15-year vision document shares sets of issues that "concern us immediately, that is, what we should be doing in 2017-18 and 2018-19".

"And there is a general agreement on what we need to do immediately and in this sense, what budget 2017-18 is doing would contribute to 15-year vision document, which we would be putting out soon," he said.

The Aayog has been entrusted with preparing a 15-year vision document beginning 2017-18, which will replace the Nehruvian five-year planning followed for over six decades.

Besides the vision document, the Aayog will be ready with a 7-year strategy and a 3-year action plan on the basis of which funds will be allocated in the Budget.