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Contract Farming Agreement

At a glance

Price
₹399 · GST included
Stamp duty
A written agreement recording a business arrangement of this kind, and creating no interest in immovable property, is commonly chargeable — if at all — only under the residual Agreement article of Schedule I-A as applicable to Punjab, or the corresponding Chandigarh entry, at a modest fixed duty, and not at any ad valorem rate tied to the value of the produce: this Agreement is neither a conveyance nor a lease of the land.
Registration
Not compulsorily registrable.
Witnesses
Not legally required for a contract of this kind, but two witnesses are provided for below, given the value that can pass under it over a season and the frequency with which the facts of what was actually agreed become disputed only after a bad harvest.

₹399

GST included

Launch period: downloads are free for now. The prices shown apply once payments open.

Guided questions, full draft on screen, download in Word.

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Also called

  • Thheka kheti karar
  • contract kheti agreement
  • sponsor farmer agreement
  • buyback agreement farming
  • produce purchase agreement farmer
  • ਠੇਕਾ ਖੇਤੀ ਕਰਾਰ
  • ठेका खेती करार
  • कॉन्ट्रैक्ट फार्मिंग एग्रीमेंट

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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Why you need it

When you need it

An agreement between a sponsor — a trader, processor, exporter, company or Farmer Producer Organisation — and a grower, under which the sponsor commits to buy a crop the grower agrees to cultivate to an agreed specification, often with inputs, technical guidance or a credit advance from the sponsor. Records the land and the crop, who supplies inputs and on what terms, the quality standard and the quantity, the price mechanism and payment, delivery, and — because this is the point every contract farming dispute in India turns on — that the sponsor acquires no interest whatsoever in the grower's land. Punjab has at times had its own contract farming legislation providing for written agreements and a facilitation and dispute-resolution mechanism, and the central Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020 covered similar ground nationally before it was repealed by the Farm Laws Repeal Act, 2021. Whether a Punjab enactment on contract farming is currently in force and administered, and whether any Contract Farming Facilitation and Coordination Committee is currently operative for a given area, should be confirmed with the Punjab Mandi Board or the Department of Agriculture before this Agreement is relied on for a large or long-term arrangement; in the absence of confirmed registration machinery, it stands as an ordinary contract enforceable under the Indian Contract Act, 1872. Not for: an outright lease of the land to the sponsor, where the sponsor itself takes possession and cultivates — that is a lease (see the Agricultural Land Lease document), not contract farming; a simple forward sale of a standing or future crop with no inputs or technical involvement from the buyer, which needs no more than an ordinary sale agreement; or an arrangement where the "sponsor" is really a moneylender advancing cash against a future crop at interest, which is a loan and should be documented as one.

See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

A written agreement recording a business arrangement of this kind, and creating no interest in immovable property, is commonly chargeable — if at all — only under the residual Agreement article of Schedule I-A as applicable to Punjab, or the corresponding Chandigarh entry, at a modest fixed duty, and not at any ad valorem rate tied to the value of the produce: this Agreement is neither a conveyance nor a lease of the land. Confirm the current figure under that article at the Collector of Stamps or the Sub-Registrar's counter before treating any particular figure as settled; this drafter could not confirm one current figure for either jurisdiction as at the date of this template. Where the Sponsor advances a credit input under clause 4 of a size that itself resembles a loan, ask separately whether that advance needs its own instrument — a promissory note or loan agreement — carrying its own stamp duty; this Agreement's stamping note covers only the farming arrangement itself.

Registration

Not compulsorily registrable. This Agreement transfers no interest in the land — clause 9 says so expressly — so it falls outside s.17 of the Registration Act, 1908. If a currently-operative Punjab contract farming statute requires this Agreement to be separately registered with a facilitation authority, that registration is a regulatory step under that statute, not registration under the Registration Act, and should be confirmed and completed on its own footing; see the note on this in whenYouNeedIt above.

Notarisation

Not required. Where the Sponsor signs through an authorised signatory, keep the board resolution or other authority in writing with this Agreement.

Witnesses

Not legally required for a contract of this kind, but two witnesses are provided for below, given the value that can pass under it over a season and the frequency with which the facts of what was actually agreed become disputed only after a bad harvest.

Talk to a lawyer about this document₹3,539 including GST (₹2,999 + 18% GST), per documentRequest Stamp Paper

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CONTRACT FARMING AGREEMENT

This Contract Farming Agreement (this "Agreement") is made at Jalandhar on 1 April 2026.

BETWEEN

Doaba Agro Processors Private Limited, an individual trader or processor, of Focal Point, Phase II, Jalandhar 144004, PAN AABCD1234E, acting through Ajay Mehta, Director, authorised by board resolution dated 2 March 2026 (the "Sponsor");

AND

Jaspal Singh, of Village Nangal Kalan, Tehsil Nakodar, District Jalandhar 144040, mobile 98140-00000, PAN ABCPS1234D (the "Grower").

The Sponsor and the Grower are each a "Party" and together the "Parties".

RECITALS

A. The Grower cultivates, or has the right to cultivate, the land described in Schedule I (the "Land").

B. The Sponsor wishes to procure the crop described in Schedule I grown to an agreed specification, and the Grower has agreed to cultivate that crop on the Land and to deliver it to the Sponsor, on the terms of this Agreement.

C. This Agreement is a contract for the cultivation and purchase of a crop. It is not a lease, and clause 9 records that no interest in the Land passes to the Sponsor.

NOW THIS AGREEMENT WITNESSES as follows.

  1. THE LAND AND THE CROP

1.1 The Land is described in Schedule I. The Grower shall cultivate Basmati paddy, PUSA 1121 variety on 8 acres (64 kanal) of the Land for the Kharif 2027 season.

1.2 The Grower shall cultivate the crop using generally accepted good agricultural practice for that crop, following the technical guidance given under clause 2 where the Sponsor provides it, and shall not without the Sponsor's written consent grow the crop for any purpose inconsistent with this Agreement.

  1. INPUTS AND SUPPORT

2.1 Inputs are supplied by the Sponsor to the Grower free of charge, as itemised below

2.2 Certified seed for the whole area, valued at Rs 18,000; agronomist guidance on sowing, irrigation and pest management at least twice each month during the season

2.3 A field visit by the Sponsor's agronomist at sowing, at flowering and before harvest, and on reasonable notice at any other time

2.4 The Grower shall permit the Sponsor's agronomist or field officer to enter upon the Land at reasonable times on reasonable notice to observe cultivation and advise on it, and shall keep such records of inputs applied and field operations as the Sponsor reasonably asks for.

  1. CULTIVATION, RESIDUE AND ENVIRONMENTAL COMPLIANCE

3.1 The Grower shall comply with every law applicable to cultivation of the crop on the Land, including the Punjab Preservation of Subsoil Water Act, 2009 where the crop is paddy, and shall not use any pesticide, fungicide or other input banned or restricted by law or by any standard the produce must meet under clause 6.

3.2 The Grower shall not burn crop residue or stubble on the Land in breach of any direction, notification or order for the time being in force prohibiting or restricting it, and shall follow whatever residue-management practice the Sponsor's technical guidance recommends where the Sponsor provides one. The Grower shall indemnify the Sponsor against any penalty imposed on the Sponsor because of the Grower's own breach of this clause, and this clause does not make the Sponsor liable for the Grower's compliance.

Questions about this document

Does the Contract Farming Agreement need stamp paper or stamp duty in Punjab and Chandigarh?

A written agreement recording a business arrangement of this kind, and creating no interest in immovable property, is commonly chargeable — if at all — only under the residual Agreement article of Schedule I-A as applicable to Punjab, or the corresponding Chandigarh entry, at a modest fixed duty, and not at any ad valorem rate tied to the value of the produce: this Agreement is neither a conveyance nor a lease of the land. Confirm the current figure under that article at the Collector of Stamps or the Sub-Registrar's counter before treating any particular figure as settled; this drafter could not confirm one current figure for either jurisdiction as at the date of this template.

Where the Sponsor advances a credit input under clause 4 of a size that itself resembles a loan, ask separately whether that advance needs its own instrument — a promissory note or loan agreement — carrying its own stamp duty; this Agreement's stamping note covers only the farming arrangement itself.

Does the Contract Farming Agreement need registration in Punjab and Chandigarh?

Not compulsorily registrable. This Agreement transfers no interest in the land — clause 9 says so expressly — so it falls outside s.17 of the Registration Act, 1908. If a currently-operative Punjab contract farming statute requires this Agreement to be separately registered with a facilitation authority, that registration is a regulatory step under that statute, not registration under the Registration Act, and should be confirmed and completed on its own footing; see the note on this in whenYouNeedIt above.

What does the Contract Farming Agreement cost on Kaagazaat?

₹399, GST included.

Launch period: downloads are free for now. The prices shown apply once payments open.

Does the Contract Farming Agreement need witnesses?

Not legally required for a contract of this kind, but two witnesses are provided for below, given the value that can pass under it over a season and the frequency with which the facts of what was actually agreed become disputed only after a bad harvest.

Often needed with this document

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