Model Contract Farming Act, 2018

RELEVANCE – UPSC GS PRELIMS & GS MAINS – III

PRACTICE QUESTIONS

First go through the text (given after the questions) and then attempt the questions.

QUES 1 . Which among the following is/are incorrect with respect to Model Contract Farming Act, 2018  

1 . Contract framing to be within the ambit of APMC Act.

2 . Contracted produce is to be covered under crop / livestock insurance in operation.

3 . Permanent structure can be developed on farmers’ land/premises.

Select the correct answer from the following:

a . 1 & 2

b . 1 & 3

c . 2 & 3

d . 1 , 2 & 3

Answer – b

QUES 2 . Consider the following statements regarding Model Contract Farming Act, 2018  

1 . Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at district level provided.

2 . Promotion of Farmer Producer Organization (FPOs) / Farmer Producer Companies (FPCs) to mobilize small and marginal farmers has been provided.

Which among the above statements is/are correct?

a . 1 only

b . 2 only

c . Both 1 and 2

d . Neither 1 nor 2

Answer –b

About Model Agriculture Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 OR Model Contract Farming Act, 2018

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Objectives of the Act

1 . To integrate farmers with bulk purchasers including exporters, agro- industries etc. for better price realization.

2 . Mitigation of market and price risks to the farmers.

3 . Ensuring smooth agro raw material supply to the agro industries.

Salient features of the Act

1 . The Act lays special emphasis on protecting the interests of the farmers, considering them as weaker of the two parties entering into a contract.

2 . In addition to contract farming, services contracts all along the value chain including pre-production, production and post-production have been included.

3 . “Registering and Agreement Recording Committee” or an “Officer” for the purpose at district/block/ taluka level for online registration of sponsor and recording of agreement provided.

4 . Contracted produce is to be covered under crop / livestock insurance in operation.

5 . Contract framing to be outside the ambit of APMC Act.

6 . No permanent structure can be developed on farmers’ land/premises.

7 . No right, title of interest of the land shall vest in the sponsor.

8 . Promotion of Farmer Producer Organization (FPOs) / Farmer Producer Companies (FPCs) to mobilize small and marginal farmers has been provided.

9 . FPO/FPC can be a contracting party if so authorized by the farmers.

10 . No rights, title ownership or possession to be transferred or alienated or vested in the contract farming sponsor etc.

11 . Ensuring buying of entire pre-agreed quantity of one or more of agricultural produce, livestock or its product of contract farming producer as per contract.

12 . Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village / panchayat at level provided.

13 . Accessible and simple dispute settlement mechanism at the lowest level possible provided for quick disposal of disputes.

14 . It is a promotional and facilitative Act and not regulatory in its structure.