The government, in order to encourage more and more investments in the agricultural sector, is planning to redesign its Agricultural Produce Marketing Committee Act (APMC), which is around a decade old and make a new law out of it.
As a part of process, Ministry of Agriculture in collaboration with Niti Aayog is likely to come up with a different Contract Farming Act while all the other sources of agriculture will continue to be under the APMC law.
According to several reports, the act proposes liberal contract farming, direct purchase from farmers by private players, direct sale by farmers to consumers, single trader licence, single point levy of taxes and taking fruits and vegetables out of the mandi laws as some of the amendments.
While it is on floor, some states have hesitations regarding farming provisions while some have reservations on the proposal of a single levy.
Apart from that, Niti Aayog has proposed land leasing and forestry reforms along with agriculture reforms to push the sector onto a higher growth route.
Interestingly, this is seen as government’s initiative to double farmers’ income in five years.