Common use of Myth Clause in Contracts

Myth. The bill will lead to agriculture land acquisition by corporates and farmers will end up becoming laborers • Referring to the bill Chapter 2 Section 8, “No farming agreement shall be entered into for the purpose of – (a) any transfer, including sale, lease and mortgage of the land or premises of the farmer; or (b) raising any permanent structure or making any modification on the land or premises of the farmer, unless the Sponsor agrees to remove such structure or to restore the land to its original condition, at his cost, on the conclusion of the agreement or expiry of the agreement period, as the case may be”. • Farmer agreements essentially focus on sponsor and farmer working together to produce the required variety and quality for a guaranteed price as aligned at the time of sowing.Across various examples of farmer agreements in India, sponsor works with farmers and provide technology and training on best-in-class production practices leading to higher productivity and quality rather than acquiring land from farmers.Further, the bill ensures sponsors are prohibited from acquiring ownership rights or making permanent modifications on ▇▇▇▇▇▇’▇ land. • Example 1, over 3,000 banana farmers across Maharashtra, Madhya Pradesh, and Andhra Pradesh are earning ~Rs. 40,000 more per acre under agreement with INI ▇▇▇▇▇.▇▇▇▇▇▇▇ under the agreement have been trained by INI Farms to work as per best-in-class production practices leading to high quality international standard production. Multiple innovative cultivation practices have been adopted by farmers including bunch treatment, bud injection, deflowering, removal of male flowers, covering the bunch with bags, etc. with the help of INI Farms leading to significantly high yield of quality produce. • Example 2, thousands of chilli farmers with nearly 12,000 acres of land across 40+ villages in Guntur, Krishna, Prakasam, and Kurnool districts in Andhra Pradesh havebenefited with a ~13% productivity improvement and a ~27% rise in net returns per acre from association with ITC. Farmers under the agreement have been trained by skilled personnel deployed in each village and are regularly provided demonstrations of best practices. A dedicated call centre with technically qualified experts has also been set- up to provide advisory to farmers on best practices to improve productivity and quality and manage pest and disease control.

Myth. The bill will lead to agriculture land acquisition by corporates and farmers will end up becoming laborers •  Referring to the bill Chapter 2 Section 8, “No farming agreement shall be entered into for the purpose of – (a) any transfer, including sale, lease and mortgage of the land or premises of the farmer; or (b) raising any permanent structure or making any modification on the land or premises of the farmer, unless the Sponsor agrees to remove such structure or to restore the land to its original condition, at his cost, on the conclusion of the agreement or expiry of the agreement period, as the case may be”. •  Farmer agreements essentially focus on sponsor and farmer working together to produce the required variety and quality for a guaranteed price as aligned at the time of sowing.Across various examples of farmer agreements in India, sponsor works with farmers and provide technology and training on best-in-class production practices leading to higher productivity and quality rather than acquiring land from farmers.Further, the bill ensures sponsors are prohibited from acquiring ownership rights or making permanent modifications on ▇▇▇▇▇▇’▇ land. •  Example 1, over 3,000 banana farmers across Maharashtra, Madhya Pradesh, and Andhra Pradesh are earning ~Rs. 40,000 more per acre under agreement with INI ▇▇▇▇▇.▇▇▇▇▇▇▇ under the agreement have been trained by INI Farms to work as per best-in-class production practices leading to high quality international standard production. Multiple innovative cultivation practices have been adopted by farmers including bunch treatment, bud injection, deflowering, removal of male flowers, covering the bunch with bags, etc. with the help of INI Farms leading to significantly high yield of quality produce. •  Example 2, thousands of chilli farmers with nearly 12,000 acres of land across 40+ villages in Guntur, Krishna, Prakasam, and Kurnool districts in Andhra Pradesh havebenefited with a ~13% productivity improvement and a ~27% rise in net returns per acre from association with ITC. Farmers under the agreement have been trained by skilled personnel deployed in each village and are regularly provided demonstrations of best practices. A dedicated call centre with technically qualified experts has also been set- up to provide advisory to farmers on best practices to improve productivity and quality and manage pest and disease control.