Indian government brought farm laws, which were intended for 3 effects. This presentation is on 3 farm laws, withdrawn by government over farmers protests.

1. Dr. Narasimha Reddy Donthi
Public Policy Reviewer
3 AGRI-MARKET REFORM
LAWS :TRISHUL EFFECT
ON 3

2. Market Support by Government
Regulation of markets
Input subsidies
Minimum Support Price
Food subsidies

3. Three Acts
The Essential Commodities
(Amendment) Ordinance, 2020
The Farmers’ Produce Trade and
Commerce (Promotion and Facilitation)
Ordinance, 2020
Farmers (Empowerment and Protection)
Agreement on Price Assurance and Farm
Services Ordinance, 2020
Contract
Farming
Act

4. Contract Farming Bill, 2020
•National framework on farming agreements
•Farmer can enter into agreement
•Terms and conditions of such supply, including
time of supply, quality, grade standards, price
and other such matters
•Terms related to supply of farm services
•Minimum period of 1 crop season to 5 yrs or as
mutually agreed

5. Contract Farming Bill, 2020
•Sponsor prohibited from acquiring ownership rights
•Linked to credit or insurance scheme of the
government
•Electronic registration of agreements, by a State-
appointed Authority (may be is the word)
•Not to apply for Stock Exchanges and Clearing
Corporations
•Central government has powers to give directions

6. Contract Farming Bill, 2020
•Dispute Settlement
• Settlement within 30 days by designated authority
• No action for recovery of dues against farmers
• Sub-Divisional Authority for DS, Collector as Appellate
Authority
•Bar on jurisdiction of civil court
•Overriding effect on any State law
•Ownership of commodity during production
Land Ownership, quality of soil, interests of small and marginal
farmers

7. Experience: Crops and Contracts
Sugarcane
• Contract
farming with
sugar factories
• Pricing
• Delayed
Payments
Potato
• Contract
farming with
PEPSICO India
Holdings
• Pricing
• Violations
Cotton Seed
Oil Palm
• Contract
farming with
processing units
• Pricing
• Imports
• Delayed
Payments

8. CF legal History
•Model APMC Act, 2003
• APMCs to record contracts
• 14 States approved
•State /UT Agricultural Produce and Livestock Contract
Farming (Promotion & Facilitation) Act, 2018
• Separate Authority
• Registration and recording
• Principles for pre-determination of price
Cost of services?
Mandatory Clauses in Contracts?
Exemption from stock limits?

9. Contract
Farming
Law
Public
subsidies
Land tenure
Cropping
Pattern
Finance and
Investments
Automation
Dispute
Resolution

10. Contract Farming
• Not the best answer
• Not a stand alone answer
• Sustainability is a big question
• At best, farmers get assured income (not remunerative/ double)
• Not suitable for all agricultural products
• Not efficient, leads to monocropping and resource intensive agriculture
• Across the world, percentage under contract farming is very low
• In US, only 8.1 % of farms under contracts
• Companies are involved in fewer crops and fewer livestock production

11. nreddy.donthi20@gmail.com
THANKYOU