The Andhra Pradesh Government has issued a preliminary order allowing the agriculture producer and buyer to enter into agreements. It announced an amendment to the Andhra Pradesh (Agricultural Produce and Live Stock) Market Rules, facilitating this change.
“The contract farming producer and contract farming buyer will be at liberty to mutually decide the terms and conditions of the contract farming agreement,” Mr I Y R Krishna Rao, Special Chief Secretary to Government, said in the order.
The order is addressed to long-pending demand of the corporate sector to allow it to directly deal with the farmers. It, however, called for objections, if any, from stakeholders within a month from the date of publication of the notification in the State Gazette.
The Rules were originally issued by the Food and Agriculture Department in October 17, 1969.
The amendment would mandate buyers to submit the original copy of the agreement to the market committee or Assistant Director of Marketing within 15 days of signing it. The Government order also comprised a ‘Model Agreement for Contract Farming’.
“If the agricultural produce is not as per the agreed quality standards, the buyer can refuse to accept the delivery. He, however, cannot demand damages if the produce does not conform to the specifications and quantity agreed upon,” the model agreement said.
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Published on July 3, 2012
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