Agricultural marketing is regulated by the States’ Agricultural Produce Marketing Regulation (APMR) Acts. In order to regulate and develop the practice of contract farming, the government has been actively advocating for the States and Union Territories (UTs) to reform their agrimarketing laws to provide a system of registration of contract farming sponsors, recording of their agreements, and a proper dispute settlement mechanism for the orderly promotion of contract farming in the country.
So far, 21 states (Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Madhya Pradesh, Mizoram, Nagaland, Odisha, Punjab (separate Act), Rajasthan, Sikkim, Telangana, Tripura, and Uttarakhand) have amended their Agricultural Produce Marketing Regulation (APMR) Acts to provide for contract farming, and of them, only 13 states (Andhra Pradesh, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Madhya Pradesh, Odisha, Rajasthan, and Telangana) have notified the rules to implement the provision.