Rajasthan okays contract farming

The Rajasthan government has given its approval to contract farming and establishment of private commodity markets (mandis) across the state.

A decision to this effect was taken at a Cabinet meeting held on Monday. The meeting was presided over by Rajasthan Chief Minister Vasundhara Raje.

In 2003, similar plans to free up contract farming and direct marketing met strong opposition from commodity traders, and forced the government to defer the decision.

"The decision on contract farming, direct marketing and private mandis has been taken in the interest of farmers," said Prabhu Lal Saini, the state's agriculture minister said.