New Delhi, Dec 11 (TIWN) Contract farming has been going on in the country for a long time now, both in formal as well as informal manner, but the Central government has given it a legal basis through a law. A senior government official said that the agreement under the new law will define the quality, grade, price and conditions of services, and therefore will not compromise farmers' interests.

According to Ashok Dalwai, the president of the committee constituted to achieve the goal of doubling the farmers’ income, the new law emphasises on the interests of the farmers.

In order to make agriculture a profitable avenue, the Centre included the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act as one of the three farm laws. The law will specify the quality, grade, price of crops and conditions of services. Apart from this, the contract will be from one year to five years. The third important feature of the law is that if the price of the crop is more than the price fixed in the agreement, then the market price will be considered as the standard price.