No agricultural contract is entered into for the transfer – including sale, lease and mortgage – of the farmer`s land or premises, or for the increase of a permanent structure or for the modification of the land or premises. These rules apply, unless the sponsor agrees – at his own expense – to remove these structures or return the country to its original state as soon as the contract ends. When such a structure is not removed by the sponsor, the property is owned by the operator after the contract is concluded or the contract expires. In 2017-18, the central government published the APMC model and contract agriculture legislation to allow unrestricted trade in agricultural products, promote competition through multiple marketing channels and promote agriculture under pre-contracted contracts.   The Standing Committee (2018-19) found that states had not implemented many of the reforms proposed in the standard laws13. He recommended that the central government set up a committee of agriculture ministers from all states to reach consensus and develop a legal framework for the marketing of agricultural products. In July 2019, a high-performance committee of seven chief ministers was set up to discuss, among other things: (i) the adoption and implementation of standard laws by states over time and (ii) amendments to the Essential Commodities Act of 1955 (which provides for control of the production, supply and trade of essential goods) to attract private investment in agricultural marketing and infrastructure.  On 5 June 2020, the central government adopted three regulations: (i) the 2020 Regulation on Farmers` Trade and Trade (promotion and facilitation); (ii) the agreement on price security and the protection of farmers, 2020, and (iii) the Commodity Regulation (Amendment) 2020, Regulations collectively aim to facilitate (i) the accessibility of agricultural products outside markets notified by the various national APMC laws (ii) establish a framework for contract agriculture and (iii) to limit agricultural products only when retail prices rise sharply. Together, the three regulations are intended to increase the ability of farmers to enter into long-term sales contracts, increase buyer availability and allow buyers to purchase large quantities of agricultural products. Commercial and commercial regulations give buyers the freedom to purchase farm products outside of APMC markets without having a licence or paying fees to the APMCs. The Contract Agriculture Regulation provides buyers and farmers with a framework for entering into a contract (before the start of a harvest season) guaranteeing farmers a minimum price and guaranteeing buyers a guaranteed supply.
The third regulation amends the Basic Law, which provides that limits on agricultural stocks can only be set if retail prices rise sharply and value chain operators and exporters are exempt from any stock limits. The three regulations aim to increase the availability of buyers for farmers` products by allowing them to act freely and without a licence or storage limit, so that increased competition between them leads to better prices for farmers.  While the regulations are intended to liberalize trade and increase the number of buyers, this may not be enough to attract more buyers. The minimum duration of these agreements is a harvest period or a production cycle of livestock and the maximum period is five years.