A new legislation — the Tamil Nadu Agricultural Produce Contract Farming (Promotion and Facilitation) Act, 2018 — would be enacted during 2018-19, and brought into force for the benefit of farmers and contract farming sponsors, Agriculture Minister R. Doraikkannu informed the Assembly on Tuesday.
The new Act would be based on the Model Contract Farming Act, 2018, which the Centre had come up with, he said while tabling the policy note of his department.
“The buyers can get assured supply at a predetermined price. Contract farming would also assist in creating new markets, efficiency and economies of scale, ensuring quality standards, facilitating diffusion of modern technologies, minimising transaction costs, coping with information asymmetries, price volatility and sharing of risk,” he said.
The Minister said the Food Processing Policy was being formulated in line with the Draft Model Food Processing Policy developed by the Union Ministry of Food Processing Industries.
The government was taking steps to create ultra and mega food parks under the Public Private Partnership (PPP) model in 10 districts including Villupuram, Salem, Cuddalore, Tiruvannamalai, Krishnagiri, Erode, Tirunelveli, Virudhunagar, Theni and Dindigul, he said.