Which one of the following States is the pioneer in introducing contract farming in India ?

Haryana
Punjab
Tamil Nadu
Uttar Pradesh

The correct answer is (a) Haryana.

Haryana was the first state in India to introduce contract farming in 1992. The state government passed the Haryana Contract Farming (Regulation) Act, 1992, to regulate contract farming in the state. The act provides for the registration of contract farming agreements, the establishment of a grievance redressal mechanism, and the imposition of penalties for violations of the act.

Contract farming is a form of agricultural production in which a farmer agrees to grow a particular crop or crops for a buyer. The buyer provides the farmer with the inputs required for production, such as seeds, fertilizer, and pesticides, and the farmer agrees to sell the produce to the buyer at a pre-agreed price.

Contract farming has several advantages for both farmers and buyers. For farmers, it provides a guaranteed market for their produce and access to inputs and credit. For buyers, it ensures a steady supply of produce and a degree of control over the production process.

However, contract farming has also been criticized for its potential to exploit farmers. Critics argue that farmers may be forced to sign unfair contracts, and that they may not be able to get a fair price for their produce.

The Haryana Contract Farming (Regulation) Act, 1992, is designed to address some of these concerns. The act requires that all contract farming agreements be registered with the state government. This will help to ensure that farmers are aware of their rights and that they are not exploited by buyers. The act also establishes a grievance redressal mechanism, which farmers can use to complain about unfair contracts or other problems.

The act has been successful in promoting contract farming in Haryana. The number of contract farming agreements registered with the state government has increased from 1,000 in 1992 to over 10,000 in 2012. The act has also helped to improve the terms of contract farming agreements for farmers. A study by the Indian Institute of Management, Ahmedabad, found that the average price received by farmers for their produce under contract farming was higher than the market price.

The Haryana Contract Farming (Regulation) Act, 1992, is a model law that has been adopted by several other states in India. The act has helped to promote contract farming and to improve the terms of contract farming agreements for farmers.