●Odisha to promote contract farming system due to Pandemic
•Recently, the Odisha government has promulgated an ordinance allowing investors and farmers to enter into an agreement for contract farming
•The ordinance aims to facilitate both farmers and sponsors to develop mutually beneficial and efficient contract farming systems.
•It is also expected to improve the production and marketing of agricultural produce and livestock while promoting farmers’ interest
•Contract farming signifies an agricultural production (including livestock and poultry) based on a pre-harvest agreement between buyers (such as food processing units and exporters), and producers (farmers or farmer organisations).
•The producer can sell the agricultural produce at a specific price in the future to the buyer as per the agreement.
•Under contract farming, the producer can reduce the risk of fluctuating market price and demand. The buyer can reduce the risk of non-availability of quality produce.