​The Enforceability of Farming Agreements in India-Insights from a Legal Perspective

Abstract

Background: The recently passed and repealed farming agreement legislation in India was designed to empower the farmers to enter into contracts with the agri-business firms, exporters, wholesalers, retailers to directly trade their farm produce outside the designated APMC market. An exploration of the studies relevant to farming agreements/contract farming indicates that it has promising benefits in terms of security, increased income and quality production only if the parties engage in fair contractual practices. Methods: In this context the present paper critically examines the text of the repealed farming agreement legislation in India by largely focussing upon the provisions that are connected with the enforceability of farming contracts. Result: As the contractual relationship between the parties is the vital element in the successful implementation of the farming agreements, this paper has spelt out the statutory provisions that safeguard the interest of both the parties and also those ambiguous provisions that were likely to give scope for exploitation of small farmers. In conclusion, the responsibility of the government and other stakeholders is discussed to boost the enforceability of farming agreements in India and concrete suggestions are given to secure and protect the rights of both the parties involved in it.