Tamil Nadu has become the first state in the country to enact a law on contract farming  The law would safeguard the interests of farmers when there is a bumper crop or during major fluctuation in market prices. In such a scenario, the farmers will be paid a predetermined price arrived at the time of signing agreements with buyers. However, any produce that is banned by the Centre government or the State government or by the Indian Council of Agricultural Research, would not be covered under contract farming