Vol. 11, Issue 12 (2022)

Author(s):
Amarpreet Kaur, Jenny Kapngaihlian, Shruti Chopra and Anurag Chaudhary

Abstract:
There is a widespread practice of contract farming across crops, states, and agencies in India and there have been a lot of studies on its performance and experience. Default by both sides (companies and farmers) has been an issue of concern and contract farmers in sundry components of India have faced many problems like an undue quality cut on produce or no procurement of produce, delayed distributions at the factory, delayed payments, low price, no emolument for crop failure, etc. besides contract agreements being in favour of the contracting agencies. Withal, the omission of minuscule holders remains a sizably voluminous problem. Indian farmers are primarily marginal or small; they cannot deal with immensely colossal buyers on their own. Despite the inhibited prosperity of the earlier model Act 2003 on contract farming, the government had given another contract farming Act 2020 which feared the farmers more as a land leasing clause had been integrated into it. The present article primarily endeavours to systematically analyse the two models of contract farming and additionally endeavours to decipher the reasons abaft the unprecedented interest shown by the farmers with special reference to the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020.