Do CONTRACT FARMING Advantages Outweigh Concerns? Contractual agreements between the farmers and agribusiness companies have gained immense momentum in many developing countries including India. Besides ensuring economies of scale, contract farming facilitates access to technology, capital and quality inputs for the farmers. Consequently, the arrangements hold much significance given that agriculture accounts for 16 per cent share in India’s GDP against its 4 per cent share in world GDP and 55 per cent of the country’s population is dependent on it. However, there are a number of business and legal challenges plaguing the commercial agreements between the sponsoring companies and the farmers. Enforceability of contracts by either party is a worrisome aspect that calls for immediate attention from the various stakeholders. The centre announced the Model Agricultural Produce and Livestock Contract Farming Act 2018 with a view to address such discrepancies. The primary purpose was to legi$mate contract farming in India which has been largely based on the provisions of Indian Contract Act 1872.AgroSpectrum India digs deeper into the contract farming landscape to uncover the complexities and benefits.
