State allows contract farming
Uttar Pradesh farmers are set to join the retail revolution sweeping the country.
By TNN |
LUCKNOW: Uttar Pradesh farmers are set to join the retail revolution sweeping the country. The Agricultural Infrastructure and Investment Policy announced by UP chief minister Mayawati on Friday allows private investors with net worth of more than Rs 500 crore to purchase produce directly from the farmers, but not below the government-set minimum support price.
While contract farming will be allowed, the ownership of land will remain with the farmer. Importantly, in case the market price is higher than the contracted price, the farmer will be free to sell the produce in the open market.
The private parties will have to make cash payments on the same day. They will have the right to set up private mandis across the state and small entrepreneurs will be allowed to set up kisan bazaar in the joint sector.
Other players will continue to have the right to buy farm produce under the Mandi Parishad licence. Those selected will get integrated licence to operate, and facility of depositing tax at one place.
While contract farming will be allowed, the ownership of land will remain with the farmer. Importantly, in case the market price is higher than the contracted price, the farmer will be free to sell the produce in the open market.
The private parties will have to make cash payments on the same day. They will have the right to set up private mandis across the state and small entrepreneurs will be allowed to set up kisan bazaar in the joint sector.
Other players will continue to have the right to buy farm produce under the Mandi Parishad licence. Those selected will get integrated licence to operate, and facility of depositing tax at one place.
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