AGRIPRUNER

 Just a few days back government cleared all three important bills on agriculture. All are important but one related to contract forming is very crucial. It is well known that agriculture is not a profitable business now. A lot of restrictions are there on product sales as well as there is no framework for contract farming.

Also, legal finance is scarce in the present for the person who takes land on lease. Getting another assistance is not possible. One of the major issues is the trust factor which leads to litigation.

The new legislation on contract farming is going to resolve lots of issues as going forward there will be a framework for a legal contract between two farmers for sharing of cultivation land. Right now I am the landowner but not cultivating the land someone other is cultivating for some times land ownerships get transferred to another cultivator.

This leads to other problems like land grabbing or keeping land without cultivation for years. Causing fertility loss of land.

Now all is solved as now anyone can form a legal contract of land for cultivation without losing ownership right even after years of farming by the contractor.

Right now contract farmer is not considered a farmer which leads to high costs of cultivation. (without formal ways of financial assistance). Without an actual landowner, he is not going to get any help under any flagship program. Even like training given by agriculture university. 

Lots of good initiatives have been taken by the government over the years but this small issue was a bottleneck for not achieving desired results.

Over 95% of farmers are marginal which means they have a landholding of fewer than 5 acres.

To run the family and make a profit out of it is not possible with this meager holding. The migration of next-generation is there for years as family size is increasing. In short, farming is not viable. But cooperative federation is not working due to the different interests of stakeholders.

With the legal framework, there is hope that lots of young agripruner will turn towards it. As formal financial assistance from Institutions will be there, also insurance cover for all. It will take time to realize all benefits. But the initiative is in the right direction. Also, E NAM and permission to sell produce without APMC Mandi or cultivating the variety as per the requirement of the purchaser will give assurance to the producer with no loss or minimal loss.

Long-term contracts and their enforcement are crucial as our Judiciary is not up to mark to handle these types of commercial issues. The time required for the enforcement is to be seen soon. As far other provisions in the bill are progressive in nature, not only safeguarding payment of farmer which is very crucial but also assuring that loss will be bared by the purchaser, not a farmer.  Purchaser will get quality and quantity of his choice. Both will be assured of their investment. New technologies from the purchaser will make both take less risk with more profit.

Now we can expect that a new generation with new zeal will take the call for agriculture as their carrier.

Also, the contractor and contractee will get a legal framework so the land pooling will be there so the more big landholding without ownership change to get more returns on investment.

Going forward we will see a new breed of entering pruner who will make a lot of fortunes in agriculture.

Which will stop migration from ruler area to urban area as new job avenues will be there.

Cascading effect of this, there will be allied industries which feed not only feed directly and indirectly to another allied sector. It will create a financial and capital asset.

The market opportunity shortly is immense as compared to the present situation.