Maharashtra government has recently passed the controversial bill amending the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963. The amendment has paved way for contract farming in the state, which, the government claims, will boost the food processing industry and increase export of agricultural produce.

Addressing doubts raised by the opposition, the amendment makes it clear that under no circumstances the companies will be allowed to buy farmers' land. "Discussions are also being held to decide if registration will be free or attract a nominal fee; whether there will be a clause of bank guarantee; and which commodities will be covered under contract farming,' says S G Pawar, general manager of the Pune-based Maharashtra State Agricultural Marketing Board. "While the amended act mandates a company to get into a legal buy-back contracts with a farmer, the role of the state government will be that of a regulator and a monitoring body,' says A Suryavanshi, officer on special duty, farm produce marketing department, Maharashtra. "The assistant registrar of the taluka will be the nodal officer for registration and the registration form will mention details of the sponsor, farmer, price and quality of the produce, commodities covered under contract farming, etc,' adds Pawar. The assistant registrar will also deal with complaints.

"To safeguard farmers' interest, the recent amendment bans dispute settlement in civil courts and the assistant registrar will have to resolve the dispute within 30 days of the filing of a case,' says Suryavanshi. Maharashtra is already drawing big players in the agro and food industries, such as ITC and Cargill Foods.