It is a good decision to exclude products under contract agriculture from stock limits under the Essential Commodities Act. However, the regulation does not apply to the contract farming of sugar cane, which remains subject to the SugarCane Regulation (Control) Order 1966. This means that sugar mills still have to pay fair and remunerative prices relative to world prices, or state-recommended prices, despite Nitin Gadkari`s claims about high GMMs in several crops. As a result, Indian sugar prices will remain higher than world prices. MSP reforms can probably start from here. Yet, even in the United States, poultry compensation has benefited poultry producers more than poultry producers. The regulation provides for the creation of a registrar in each state for the electronic registration of contracts. States will do well to promptly notify the rules for the registration of contracts. Other sectors are a better example of what the future should be. The most successful example of wage moderation in India comes from the sugar cane and poultry sectors. For example, seed production is mainly through a wage branch between seed companies and farmers.
Seed companies provide foundation seeds to farmers who, in turn, provide certified seeds to companies. The National Seed Corporation has a well-defined protocol for the remuneration of seed production. Most of the time, farmers receive a higher price than MSP and even the prevailing APMC prices. In general, farmers are not behind in the supply of seeds. For most hybrid seed production, seed companies pay about 25% of the agreed price to approved farmers for the supply of seeds. The remaining 75% is paid after the completion of a genetic purity test necessary to label seed packaging. This test can last about 70-80 days and farmers receive the balance 75% of the price only after this test confirms the purity of the seeds. Welcome to India`s largest poultry company! Over a 25-year period, Suguna has grown from strength to strength and has become an Rs. 5480 crore company, making it India`s No.1 broiler chicken producer. Suguna`s pioneering work in commissioned agriculture has helped create thousands of successfully shared rural entrepreneurs. „Integration poultry“ introduced and pioneer of Suguna in the country has the livelihoods of peasants… SFPL, a diversified company based in Hyderabad, is active in poultry integration, feed, premixes, solvent extraction and food oil refining.
In 1982, visionary D.Ram Reddy, the first-generation entrepreneur who began selling chicken stores under the Ram Reddy Chicken Market brand in Hyderabad, traced his modest start in 1982. SFPL renamed „Sneha Fresh Chicken“ and soon the name became synonymous with quality. The regulation provides that the government will issue standard guidelines and agreements. This means that this regulation is still being developed. The Centre`s June 5, 2020 ordinance aims to create a national framework for contract agriculture by introducing uniform rules for contract agriculture, in accordance with state rules enacted under APMC laws and laws introduced by some states under the Model Act in 2018. Although India has had some relatively successful models, contract agriculture has not increased wisely. It is not as if contract farming in India is new or has no legal support. Under the Model APMC Act of 2003, contract farming was also authorized and the Agricultural Production Marketing Committees (APMCs) were given responsibility for the registration of contracts. They have also been tasked with resolving disputes in such contracts.