In what could enable big corporates and private companies to enter the agriculture sector in the State, a Bill would be moved in the next legislature session that could help implement a community and contract system.
Agriculture Minister N.H. Shivashankar Reddy said that laws are already in place for contract farming, and that certain amendments will be brought to the Act. Under the new Bill, companies will be allowed to adopt villages, take up agriculture activity, bring in necessary investment, supply farm equipment, seeds and fertilisers, among other needs. Finally, companies will take up responsibility of marketing produce, which will ensure farmers have a stable income, he added.
According to the Minister, while the title of the land and ownership will remain with the farmer, private companies will take the land on lease for agricultural activity. If some villagers come together and take up farming on their own, they can get into an agreement with the companies. “There will be no pressure on farmers to participate in such a scheme. It will be voluntary. A similar system exists in Israel too,” he said, and added that a policy would also be brought in that would help raise agriculture to an industry status.
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