Fifteen States And Union Territories Greenlight Contract Farming: Agriculture Ministry Update

About 15 states and Union Territories have permitted contract farming in the country, Parliament was informed on Friday. "Agriculture and Agriculture Marketing is a state subject. 15 States and Union Territories have made enabling provisions for contract farming provisions in their APMC (Agricultural Produce Market Committee) Acts," Union Minister of State for Agriculture Ramnath Thakur said in a written reply to the Rajya Sabha.

Contract farming provides for an institutional arrangement for registration of sponsoring companies, recording of contract farming agreements and indemnity to farmers' land, he said.

Any disputes arising out of contract are resolved as per the arbitration and dispute resolution mechanism specified therein, he added.