A critical analysis of India's Contract Farming Act 2020

This paper critically analyses the recently passed “Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020”. Based on a systematic review of the literature using keyword search strategy from Scopus, Economic and Political Weekly, Google Scholar, and other government-published documents, this paper contends farmers are likely to have less onus of power in contract farming than corporate agencies. A thorough analysis of selected studies and comparison with the new Act reveals that farmers may benefit from legal assistance, farm service, market and price assurance, and insurance coverage once it goes into effect. The Act is not without flaws, and small farmers’ participation remains a source of concern. This paper identifies the Act's flaws in light of reviewed studies and advocates that the government shall consider incorporating FAO's concept of “Responsible Contract Farming” to strengthen farmers’ hands and make the Act a more transparent practice.