Law on contract farming in Rajasthan on the cards

Private sector can help in bringing market closer to farmers: Raje

To encourage private investment and to promote employment opportunities in the farm sector, the Rajasthan government will bring a legislation to allow contract farming and direct marketing of agricultural produce.

This was stated by Rajasthan Chief Minister Vasundhara Raje while inaugurating the second agriculture summit, organised by the Confederation of Indian Industry (CII) here today.

"We want private partnership for developing infrastructure in the agriculture sector and for bringing market closer to farmers," the chief minister said.

Raje said her government would be more radical in its approach towards improving productivity and farmers' access to markets.

"We plan to promote organic farming in a big way while taking a holistic approach in improving the farm sector in the state," she said.

Despite shortage of water, Rajasthan was among the country's top three producers of many commodities, she said. "Uncertainties of markets and rains were creating trouble, and the state government will take steps to solve these problems on a priority basis," she said.

The state was ready to seek private investment in increasing milk production and collection, creating agriculture export zones, organic farming as well as wool cultivation, she said. To facilitate private sector's role in agriculture, the state government would hold talks with the CII, she added.

Seeking improvement in the infrastructure sector, chairman of the CII (agriculture council) YC Deveshwar said there was a need for moderation of taxes so that the private sector could play its role in improving productivity and diversification of crops.

The key to success in agriculture was to move from increasing production to increasing demand for agricultural commodities, Deveshwar said. "The rise in demand will raise farmers' income. This will also make it easier for the private sector to invest in agriculture," he said.

The two-day summit is aimed at encouraging reforms in the farm sector. The chamber feels that in coming years agriculture will grow at a faster rate. But it will be unrealistic to expect a repeat of the last year's double-digit growth, despite the forecast of a normal monsoon, the chamber feels.

The meet will highlight specific success stories. It will provide a common platform to farmers, industry, financial institutions, commodity exchanges and policy makers.