(a) whether the Government has initiated any scheme to allow farmers to form land-share
companies in collaboration with the corporates;
(b) if so, the details thereof and the benefits likely to accrue therefrom alongwith the
guidelines issued in this regard;
(c) the steps taken to fully operationalise the said scheme; and
(d) the provision made to protect the interest of petty farmers from foul play of the corporate
sector?
MINISTER OF THE STATE IN THE MINISTRY OF AGRICULTURE (SHRI KANTI LAL BHURIA)
(a): Government has no scheme to allow farmers to form land-share companies in
collaboration with the corporates. However, Ministry of Agriculture is promoting contract
farming in the country, in which corporate agencies or others enter into agreement of purchase
of agricultural produce with the producers.
(b) to (d): In order to put required system in place for contract farming, suitable
provisions have been included in the Model Agricultural Produce Market Committee (APMC) Act
formulated by the Ministry of Agriculture in 2003 and circulated to the State Governments for
considering suitable amendments in their concerned Act by adopting those provisions. The
Model Act provided for the registration of contract farming sponsors and recording of contract
farming agreements with the APMC or a prescribed authority under the Act, protection of title
or rights of the farmers over the land under such contracts, dispute settlement mechanism and a
model draft agreement suggesting various terms and conditions.
The model act circulated by the Ministry is suggestive in nature, and, since
agriculture is State`s subject, it for the State Governments to decide on the implementation
on the contract farming arrangements in their State.