Lok Sabha Question No. 1335 (UNSTARRED), answered on 2023-12-11
Subject: Contract Farming Agreements Multinational Corporations
Ministry: CORPORATE AFFAIRS
Asked by: Sunita Duggal

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## ANSWERED ON MONDAY, DECEMBER 11, 2023

## LOK SABHA UNSTARRED QUESTION NO. 1335 AGRAHAYANA 20 ,1945 (SAKA)

## CONTRACT FARMING AGREEMENTS MULTINATIONAL CORPORATIONS

## QUESTION

1335.  SHRIMATI SUNITA DUGGAL:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Government has taken any specific measures to enhance ease of doing business between farmers and Multinational Corporations (MNCs) with aim of doubling farmers' income;
- (b) if so, the steps taken thereof;
- (c) whether the Government has taken any measures to safeguard farmers from discriminatory contract farming agreements by corporates and MNCs and if so, the details thereof;
- (d) whether the Government has issued any guidelines/advisory to industry stakeholders  for  fair  practices  while  entering  into  contract  farming agreements with farmers; and
- (e) if so, the details thereof?

## ANSWER

MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  OF  THE  MINISTRY  OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER

OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS

[RAO INDERJIT SINGH]

- (a) to  (e) :- The subject matter of Contract Farming Agreements does not fall within the domain of Ministry of Corporate Affairs. As informed by the

Ministry of Agriculture and Farmers Welfare (MA&FW), though Agriculture and Agricultural marketing is a State Subject, the Government has made a provision for Contract Farming in the Model Acts circulated to the States for their adoptions.

With an aim of doubling farmers' income, i n line with the Government's  commitment,  an  Inter-ministerial  Committee  in  April, 2016  was  constituted  to  examine  issues  relating  to  'Doubling  of Farmers Income (DFI)'  and recommend a strategy to achieve the same by the year 2022. The  DFI Committee under Dr. Ashok Dalwai, CEO, National Rainfed Area Authority (NRAA) with official and non-official members  submitted  its  recommendations  in  14  Volume  Report  in September 2018 to the Government. The report contained comprehensive  strategy  for  doubling  of  farmers'  income  through various policies, reforms & programmes. The Government constituted an Empowered Body on 23.01.2019 for implementation and monitoring of the recommendations of the DFI committee.

In  line  with  the  strategy  for  increasing  farmers'  income,  as suggested  by  the  DFI  Committee,  Government  has  adopted  various reforms  and  policies  that  focus  on  higher  income  for  farmers  and implemented various developmental schemes, programmes and initiatives aimed at supplementing the efforts of the State Governments for the welfare of farmers by modernizing and rationalizing use of inputs so as to decrease  cost, increasing production,  remunerative  returns,  income  support,  old  age  security, etc. These schemes, programmes and initiatives include:

- i. Supplementary income transfers under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme
- ii. Pradhan  Mantri  Kisan  Maan  Dhan  Yojana  (PM-KMY)  for providing old age pension
- iii. Crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY)
- iv. Increase in Minimum Support Price (MSPs) for all Kharif & Rabi crops ensuring a minimum of 50 percent of profit margin on the cost of production
- v. Focus on resource use efficiency through Soil Health Cards for  rationalizing use of fertilizers and use of Neem coated Urea
- vi. Better  access  to  irrigation  under  Pradhan  Mantri  Krishi Sinchai Yojana (PMKSY)
- vii. 'Per drop more crop' initiative through drip/sprinkler irrigation  for  optimal  utilization  of  water,  reducing  cost  of inputs and increasing productivity
- viii. Paramparagat  Krishi  Vikas  Yojana  (PKVY)  for  promoting organic farming and Mission Organic Value Chain Development in North East Region (MOVCDNER)
- ix. Promotion of sustainable Natural Farming systems
- x. Farm  mechanisation  under  Sub-mission  on  Agricultural Mechanization (SMAM), providing which subsidy on purchase of  tractors  and  other  farm  machineries,  and  promotion  of Custom  Hiring  Centres  (CHCs)  for  supporting  small  & marginal farmers who cannot buy them
- xi. e-NAM  initiative  for  transparent  and  competitive  online trading platform, integration of APMCs with eNAM to create a more efficient marketing environment
- xii. Agro-forestry  through  'Har  Modh  Par  Ped'  for  additional income
- xiii. National Bamboo Mission to promote bamboo plantation on non-forest government as well as private land and emphasis on value addition, product development and markets
- xiv. New procurement policy under Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) for ensuring remunerative prices  for  produce  by  robust  procurement  of  pulses  & oilseeds and supplementing FCI operation for procurement of paddy, wheat & millets
- xv. Promotion  of  Bee-keeping  under  Mission  for  Integrated Development of Horticulture (MIDH) to increase productivity of crops through pollination and increase in honey production as an additional source of income
- xvi. Consistent annual increase in volume of credit with interest subvention,  increase  in  coverage  of  farmers  under  Kisan Credit Cards (KCC) and offering production loan to even dairy & fishery farmers besides agricultural crops
- xvii. Formation and promotion of 10,000 FPOs to bring scales of economy to agricultural operations
- xviii. Special attention on creation of agricultural infrastructure through  Agri  Infrastructure  Fund  (AIF)  with  a  size  of  Rs. 100,000 crore
- xix. National  Mission  for  Sustainable  Agriculture  (NMSA)  to evolve and implement strategies to make Indian agriculture more resilient to the changing climate
- xx. Focus on application of digital technology at all stages of agricultural value chain
- xxi. Adoption of drone technologies in agriculture with potential to revolutionize the Indian agriculture
- xxii. Launching of Kisan Rail to exclusively cater to movement of perishable agrihorti commodities
- xxiii. MIDH - Cluster Development Programme (CDP) designed to leverage geographical specialisation of horticulture clusters and promote integrated and market-led development of preproduction,  production,  post-harvest,  logistics,  branding, and marketing activities
- xxiv. Creation  of  Start-up  Eco  system  in  agriculture  and  allied sector
- xxv. Rashtriya  Gokul  Mission,  Blue  Revolution, Agro-forestry, Restructured National Bamboo Mission, implementation of New Generation Watershed Guidelines, etc.
26. ******