Damages clause to shield contract farmers soon

Draft law penalises agreement breach, keeps APMC out of activity

The Centre has come out with a draft law on contract farming that seeks to provide damages to agrarians for violation of contracts by purchasers of any related produce.

The draft aims to ensure damages to the aggrieved party in a breach of contract by either side. It is usually the farmers who are losers in such contracts. 

If enacted, the law would regulate contract farming, regulated by the respective state marketing. The draft seeks to keep contract farming and goods produced through contract farming out of the purview of Agricultural Produce Marketing Committees. This would give the buyer freedom