Contract farming Bill approved

The Maharashtra assembly today passed a contract farming Bill amid noisy protests from the opposition. The Bill, which will be sent to the upper house of the state legislature for approval, is based on the model Contract Farming Act which was passed by Parliament last year.

The Contract Farming Act is designed to encourage the investment in the food processing industry of Maharashtra and export of farm produce, which would ensure farmers get the best prices for their produce, said Maharashtra agriculture marketing minister Harshwardhan Patil said.

He further said, "Food processing industry and exporters of farm produce have always wanted assured supply of quality farm produce. The Act will not only assure this happens, but also iron out vagaries in prices that plague farmers every year."

As the new law allows buyers of farm produce to enter into direct agreement with the farmers, the farmers will be also saved from paying commission and other charges to agriculture market produce committees, Patil pointed out.

Food processing units are typically located in areas that are far removed from the place of production, and the Act will go a long way in creating new employment opportunities in rural areas, Patil added.

So far Cargill Foods, Metro Cash and Carry, ITC, Hypercity and Shoprite are some of the companies have shown the interest in the contract farming sector in the state, said Patil.

However under the provisions of new law it has been specifically mentioned that, a contractor will have no right over the land of the farmers, Patil clarified.

Under the act, the contractor will have to register his agreement with farmer which will include details like, how much land of farmer is under contract, for how long and for production of which crop.

The state will also will appoint an authority to arbitrate disputes that would arise between farmers and contractors. The decision of this body can be challenged before the appellate authority.

Opposition parties' main contention was that the Bill would turn farmers into the slaves of the bid corporations, who will dictate what, when and how much the farmers will produce, in addition to controlling the price mechanism.