Agricultural agreements may include delivery conditions for agricultural products – including delivery time, quality, quality, standards and price of products – and agricultural services. An agricultural contract may be linked to insurance or credit instruments under a central or state government system or through a financial services provider to ensure a « risk reduction » and a flow of credit to the farmer, sponsor or both. Agricultural markets in India are governed primarily by the laws of the Agricultural Producers Marketing Committee (CMPA). LDCs were set up to ensure fair trade between buyers and sellers in order to effectively price farmers` products.  LDCs may: (i) regulate the trade in farmers` products by licensing buyers, Commission representatives and private markets, (ii) impose market royalties or other taxes on such trade and (iii) provide the necessary infrastructure in their markets to facilitate trade. The act provided for a three-step dispute resolution mechanism by the conciliation body, the sub-district judge and the appeal authority. The agreement was to provide for a conciliation body and a conciliation procedure for the settlement of disputes.  The law has been the subject of much criticism from farmers across the country, particularly in Punjab and Haryana. Without any regulation, the interests of farmers are neglected.   Parties entering into an agricultural contract may require that « … compliance with such an agreement in accordance with the quality, quality and standards of an agricultural product acceptable to both parties. » These standards must be compatible with « agronomic practices, » climate and other practices; They can be formulated by the state or central government or by a government-authorized body. On 14 September 2020, three bills « on the transformation of agriculture in the country and the increase in farmers` incomes » were introduced in the Lok Sabha Act, the Agreement on the Empowerment and Protection of Insurance and Construction Services in 2020. The Farmers` Trade and Trade Act (promotion and facilitation) of 2020; and the Essential Commodities (Amendment) Bill, 2020.
Agricultural products covered by the conventions of this Act are exempt from the application of a state law that seeks to regulate the sale or purchase of agricultural products.