This content is exclusively provided by FAO / FAOLEX

Decree on Contract Farming.

Type of law
Regulation
Source

Abstract
This Decree sets out principles, regulations and measures on the management, monitoring of contract farming activities to promote agricultural production as a commodity to grow and strengthen, aiming to generate stable income, protect the rights and legitimate interests of groups, organizations, legal entities and individuals, and contribute to the socio-economic development of the nation.
The Decree defines the principles of fairness, transparency, and mutual benefit, and outlines the rights and obligations of contracting parties. It specifies acceptable contract forms, including purchase contracts, production–supply contracts, and joint venture models. It also requires contracts to include clear terms on pricing, quantity, quality standards, risk-sharing, and dispute-resolution mechanisms.
Further provisions address registration of contracts, monitoring by district and provincial authorities, and protection of farmers against unfair practices. Companies must provide technical assistance, inputs, and market guarantees, while farmers must follow agreed production standards. The Decree also outlines penalties, contract termination rules, and compensation mechanisms.
Date of text
Repealed
No
Source language

English

Legislation Amendment
No