Fifteen years after the Model Contract Farming Act, the government has again formulated a model law for the states. The State/UT Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act, 2018, is far more comprehensive than the earlier one. Version 1 failed to take off in most states; Version 2, however, covers the entire farming universe, including contract farming and services contracts across the value chain.
The bureaucratic mandi system, a key reason why the earlier version failed, has been bypassed entirely. The new law will allow big retailers to work directly with farmers and help create a sustainable ecosystem. It should bring far more predictability to the supply chain and in the process, a steady and predictable income to the farmer.