The Tamil Nadu Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act, 2019

Dec 23, 2019 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The State Government of Tamil Nadu releases the Tamil Nadu Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act, 2019. The main objective of the Act in to provide an improved production and marketing of agricultural produce, livestock and its products through holistic contract farming and to facilitate the contracting parties to develop mutually beneficial and efficient contract farming system and also promote services contract, by putting in place a friendly and effective institutional mechanism and conducive regulatory and policy frame work for contract farming and lay down procedures and systems and the matters connected therewith and incidental thereto.

The Tamil Nadu State Contract Farming and Services (Promotion and Facilitation) Authority shall be established to ensure proper implementation of this Act and to make suggestions to the Government for promotion and better performance of contract farming. Every purchaser shall be registered and the agreement must be recorded. The agreement shall be prepared in local language clearly understandable to the contract farming producer and shall be in such legally acceptable form containing such particulars and terms and conditions. The contract farming producer may enter into contract with one purchaser or with multiple purchasers without any overlap of same produce. The agreement shall be made by the contract farming purchaser exclusively for the purchase of the produce and may include production activities like supply of material inputs, land use, the advice or any other activity related thereto as specified in the agreement. The minimum period of the agreement shall be for one crop season or one production cycle of contracted produce and further continuance subject to renewal thereafter, as mutually decided by the contract farming producer and contract farming purchaser.

The State Government shall appoint a date on which the Act will come into force.


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