Bangalore, July 18 (IANS) Karnataka has opened the doors for contract farming and entry of major players into trade in agricultural commodities.

The state assembly Tuesday amended the Karnataka Agricultural Produce Marketing act to allow private players to enter the agricultural sector in a big way.

The amendment bill was passed after the opposition Congress party softened its stand against contract farming and other provisions that facilitate the entry of major private players into trade in agro products.

The Congress wanted the amendments to be referred to a select committee of the two houses of the state legislature but gave up the demand after learning that Agriculture Minister Sharad Pawar was keen on early passage of the legislation.

Home and Law minister M.P. Prakash told the house that the government was ready to refer the bill to the joint committee, but Pawar had requested Chief Minister H.D. Kumaraswamy to have the bill passed by July 19.

The amended act says contract farming will help farmers get pre-fixed rates for their produce.

Agricultural trade in the state is at present dominated by the Agricultural Produce Marketing Committees (APMCs) and small and medium players.

The amendment will help in the entry of big players like Metro Cash and Carry and Reliance, the latest entrant to the agriculture produce trade.