LAW RELATING TO CONTRACT FARMING: RIGHTS AND PROTECTION OF THE FARMER
AUTHOR – MUKUL PA* & ASHOK DOBHAL**
* LAW COLLEGE DEHRADUN, UTTARANCHAL UNIVERSITY, DEHRADUN, UTTARAKHAND, INDIA
** ASSISTANT PROFESSOR, LAW COLLEGE DEHRADUN, UTTARANCHAL UNIVERSITY, DEHRADUN, UTTARAKHAND, INDIA
BEST CITATION – MUKUL PA & ASHOK DOBHAL,LAW RELATING TO CONTRACT FARMING: RIGHTS AND PROTECTION OF THE FARMER, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (9) OF 2026, PG. 111-117, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/IJLRV6I912
Abstract
Agriculture in India is currently at a crossroads, transitioning from traditional methods to more commercialized structures like Contract Farming. This research article explores the intricate legal relationship between individual farmers and corporate sponsors. While contract farming is often presented as a solution to market volatility—providing farmers with access to better technology, quality seeds, and a guaranteed purchase price—it also introduces significant legal risks. The primary focus of this study is the inherent power imbalance between big agribusiness firms and small-scale farmers. Often, the complexity of legal contracts and the lack of awareness lead to situations where the farmer’s rights are compromised.[1] The article critically analyzes the existing regulatory framework and the transition in Indian agrarian laws to determine if they offer sufficient protection against exploitation. Using a doctrinal approach, the research identifies key “loopholes” in dispute resolution and price-fixing mechanisms, particularly highlighting the payment default crises seen in industries like the Sugar Mill and Cotton Company.[2] The findings suggest that for contract farming to be truly sustainable, there must be a mandatory inclusion of transparent grievance redressal and safeguards against land alienation. Ultimately, the paper argues for a balanced legal model that promotes corporate investment without sacrificing the socio-economic security of the farming community.
Keywords: Contract Farming, Farmer Rights, Agricultural Law, MSP, RFCTLARR Act 2013, Indian Economy, Dispute Resolution, APMCs.
[1] Food and Agriculture Organization (FAO), Legal Aspects of Contract Farming, FAO Legislative Study No. 111 (2016) (analyzing information asymmetry and lack of contractual legal literacy among small landholders globally).
[2] Sukhpal Singh, Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab, 35(5) World Development 891–907 (2007) (discussing multi-sector payment crises and supply chain breakdowns in corporate contract processing)