Agricultural agreements may include «trade and trade» or «production agreements,» or a combination of the two. In a commercial and commercial agreement, the ownership of the goods remains owned by the farmer during production and they receive the price of the products on their delivery according to the conditions agreed with the sponsor. In production contracts, the sponsor undertakes to provide all or part of the agricultural services and to assume the risk of production and also agrees to make payments to the farmer for the services provided by the farmer. Agricultural services include the provision of seeds, feed, feed, chemicals, machinery and technology, advice, non-chemical equipment and other agricultural inputs. Commercial and commercial regulations give buyers the freedom to purchase farm products outside of APMC markets without having a licence or paying fees to the APMCs. The Contract Agriculture Regulation provides buyers and farmers with a framework for entering into a contract (before the start of a harvest season) guaranteeing farmers a minimum price and guaranteeing buyers a guaranteed supply. The third regulation amends the Basic Law, which provides that limits on agricultural stocks can only be set if retail prices rise sharply and value chain operators and exporters are exempt from any stock limits. The three regulations aim to increase the availability of buyers for farmers` products by allowing them to act freely and without a licence or storage limit, so that increased competition between them leads to better prices for farmers.  While the regulations are intended to liberalize trade and increase the number of buyers, this may not be enough to attract more buyers.
When the delivery of an agricultural product must be taken care of by the promoter as part of the operating contract, he accepts that delivery within the agreed time frame. Before the delivery is accepted, the sponsor can check the quality or any other characteristics of these products, as stated in the agreement. The law provides a national framework for agricultural agreements that «protect and empower» farmers with agricultural enterprises, processors, wholesalers, exporters and large retailers, agricultural services and the sale of «… To produce agricultural products in the future within a fair and transparent price framework agreed by mutual agreement. 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.