Common use of Myth Clause in Contracts

Myth. Agriculture is not underthe central government’s domain and hence, the bill is illegal. The bill is not in the interest of farmers and rural economy, and will only benefit corporates.  Referring to Seventh Schedule, Article 246, entry 33 in the Concurrent List, “Trade and commerce in, and the production, supply and distribution of – food stuffs, including edible oilseeds and oils”, the Union government can legislate in this domain. Further, Article 249 in The Constitution of India mentions aboutthe “Power of parliament to legislate with respect to a matter in the State List in the national interest”.  Across various examples of farmer agreement in India, farmers under the agreement have multiple advantages including risk-free, guaranteed and higher income, access to technology, and training on best-in-class practices to increase productivity.  For example, nearly 2,500 potato farmers across North Gujarat are earning Rs. 30,000 more per acre under agreement with HyFun Foods, a potato processing company. Farmers are provided quality seeds at subsidized rates with credit support, complete agronomy services,and technical knowledge. In addition to the direct benefit for farmers, the agreements in North Gujarat have given a strong boost to manufacturing and exports of frozen potato products and the region is now fast emerging as a manufacturing hub for all of Asia. From being an importer of frozen potato products until 2010, total potato processed for french fries has increased to 300,000 MT in India and the volume is increasing year on year. This has resulted in increased investment in the sector and provided multiple socio-economic benefits like assured incomes for farmers, new jobs, export earnings, etc.  Hence, the bill has significant potential and is being introduced in the national interest. The Farmers Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 – Myths and Reality

Myth. Agriculture is not underthe central government’s domain and hence, the bill is illegal. The bill is not in the interest of farmers and rural economy, and will only benefit corporates.  • Referring to Seventh Schedule, Article 246, entry 33 in the Concurrent List, “Trade and commerce in, and the production, supply and distribution of – food stuffs, including edible oilseeds and oils”, the Union government can legislate in this domain. Further, Article 249 in The Constitution of India mentions aboutthe “Power of parliament to legislate with respect to a matter in the State List in the national interest”.  • Across various examples of farmer agreement in India, farmers under the agreement have multiple advantages including risk-free, guaranteed and higher income, access to technology, and training on best-in-class practices to increase productivity.  • For example, nearly 2,500 potato farmers across North Gujarat are earning Rs. 30,000 more per acre under agreement with HyFun Foods, a potato processing company. Farmers are provided quality seeds at subsidized rates with credit support, complete agronomy services,and technical knowledge. In addition to the direct benefit for farmers, the agreements in North Gujarat have given a strong boost to manufacturing and exports of frozen potato products and the region is now fast emerging as a manufacturing hub for all of Asia. From being an importer of frozen potato products until 2010, total potato processed for french fries has increased to 300,000 MT in India and the volume is increasing year on year. This has resulted in increased investment in the sector and provided multiple socio-economic benefits like assured incomes for farmers, new jobs, export earnings, etc.  • Hence, the bill has significant potential and is being introduced in the national interest. The Farmers Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 – Myths and Reality