President's nod for bill on contract farming obtained: TN govt

The Tamil Nadu government on Tuesday said President Ramnath Kovind has given assent to a bill that puts in place a policy framework and institutional mechanism on agricultural produce and livestock contract farming.

The Tamil Nadu Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Bill, 2019, adopted by the state assembly in February, is a first-of-its-kind legislation on assuring farm income, an official release here said.

The bill, aimed at benefiting marginal farmers, has been given the Presidential nod and published in a gazette, it said.

While there was contract farming of sugarcane and herbs besides poultry, there was no law to ensure the welfare of the farmers involved in it, and therefore the state government came up with such a legislation, the release said.

"At the all-India level, while there is no exclusive legislation regarding contract farming in any state so far, Tamil Nadu government has come up with such a law," it said.

The legislation allows protection to farmers or related groups to carry out transaction of their farm or livestock produce with a processing firm on the rate arrived at on the date of entering into the contract, it said.

This would provide them protection from price fluctuations, and also allow procuring firms or food processing industries to avail of quality produce from farmers or farmer groups, the release said.

"Contract farming will (also) lead to good understanding between farmers and farm-based industries," it said.

The legislation had provisions to penalise firms or the procurer for possible violation of contract and provide relief to farmers, it added.