Q. Consider the following statements about contract farming:
- Contract farming is not limited to field crops like wheat and rice only.
- It has the potential to increase farmers' incomes despite market fluctuations.
- The Model Contract Farming Act, 2018, provides a legal framework to protect the interests of both farmers and sponsors.
How many statements are correct?
Answer:
Only two
Notes:
- Contract farming is not restricted to horticultural crops; it can also involve field crops, poultry, dairy, and more.
- While it has the potential to increase farmers' incomes, this is not always guaranteed, as market fluctuations or breaches of contract may negatively affect earnings.
- The Model Contract Farming Act, 2018, was introduced to establish a structured legal framework to protect the interests of both farmers and sponsors.