Which of the following is are provided under the Model Contract Farming Act 2018 formulated by the u...........

Economic Affairs Agricultural Marketing and Prices

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Which of the following is/are provided under the Model Contract Farming Act, 2018 formulated by the union government?

1. Contract farming will remain outside the ambit of respective Agricultural Produce Marketing Act of the states/UTs.

2. Limits of stockholding of agricultural produce will not be applicable on produce purchased under contract farming.

3. Contracted produce is to be covered under crop insurance.

Select the correct answer using the code given below.

1, 2 and 3

1 only

2 only

1 and 3

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Explanation:

A Model Contract Farming Act? has been prepared by the Ministry of Agriculture & Farmers Welfare for circulation to the States for its adoption.

Salient features of Model Contract Farming Act, 2018

The act lays special emphasis on protecting the interests of the farmers, considering them as weaker of the two parties entering into a contract.
It ensures buying of entire pre-agreed quantity from producer at fixed pre-agreed price and quality standards as per the contract.
It includes all categories of agronomic and horticulture crops, livestock, dairy, poultry and fishery.
All services in the agriculture value chain, including pre-production, production (including extension services) and post-production services, are under its ambit.
It seeks to setup a Contract Farming (Development and Promotion) Authority at state level to ensure implementation and popularize contract farming among stakeholders.
It provides for Contract Farming Facilitation Group (CFFG) at village/Panchayat level to take quick and need based decisions relating to production and postproduction activities.
It provides for a Registering and Agreement Recording Committee at local level to register contracts.
It provides for a dispute settlement mechanism at the lowest level possible for quick disposal of disputes arising out of the breach of contract or any provision of the Act.
It promotes Farmer Producer Organization (FPOs) / Farmer Producer Companies (FPCs) to mobilize small and marginal farmers to benefit from scales of economy in production and postproduction activities.
It bars the transfer of ownership of the farmer‘s land to sponsor companies under all circumstances. It prohibits sponsors from raising permanent structures on farmer‘s land.
It provides farmers an alternative in cases where the procurement mechanism is ineffective.