Contract farming is regulated under the Agricultural Produce Market Committees (Development and Regulation) (APMC) Act of 2003. This is the law that legalizes contract farming in India .
Recently, NITI Ayog introduced draft model of “Agricultural Produce and Livestock Contract Farming (Promotion and Facilitation) Act, 2018 “ which proposes a comprehensive legal regime to enable contract farming.
However, the draft law too suffers from some of the same deficiencies as the APMC Act.
Contract farming is also known to lead to an increase in mono culture farming and a loss of crop diversity, making crops more vulnerable to destructive pests and crop diseases as only a single crop is sown to achieve efficiencies of scale.
Try to understand as a farmer that our country geographically so much diverse that that “ One-size-fits-for -all “ policies by the government is none feasible .
Being an educated farmer, having access to good extent of agricultural land adopt diversification of agronomic option ( crop switching , mixed crop cultivation , value addition etc . ) - the best strategy to bring in bigger dividends without going into contract farming