The Maldivian Government in its Strategic Action Plan devised for 2019 – 2023 had proposed to establish a dedicated State-Owned Enterprise for Agricultural Development, with an objective of revitalizing the agriculture sector as per the Blue Economy vision. Despite being an integral part of Maldivian society for ages, the agriculture sector has remained under-developed and unexposed to modern developments in farming techniques and technology. The government under its agenda for economic diversification aims to promote agriculture as a meaningful sector in the Maldivian economy.

It is imperative that the Maldives strengthens agricultural value chains, the productive capacity of farmers and increases the role of agriculture to achieve food and nutrition security, to ensure sustainable production systems, maintenance of ecosystems and inter-sectoral linkages; and as a source of livelihood for communities. The corporation will coordinate with local councils to purchase the produce from the registered farmers, facilitate delivery to distribution centers, and enable supply to target markets

When farmers enter a contractual agreement , Contract farming provides farmers with a guaranteed market for their products, which can help them reduce the risk of crop failure and price fluctuations. access to quality inputs and technologies and stable prices for products, which can help to plan production and finances better. Contract farming can be an effective tool to promote agricultural development, enhance food security, and improve rural livelihoods.