Section 16(6) in The Punjab Agricultural Produce Markets (General) Rules, 1962
(6)The contract farming agreement between the contract farming sponsor and contract farming producer shall be in Form C-I and it shall be got registered with the District Marketing Enforcement Officer concerned in the presence of both the parties. The agreed rate/contract rate shall not be less than minimum support price of the proceeding year. The buyer shall deposit an amount upto 15% of the total price of the agricultural produce as per agreed rate or minimum support price (if the rate is not agreed upon) or bank guarantee for the sum with the committee in which the land is situated as security. Where there is no minimum support price and no agreed rate, the amount of security shall be calculated at the rate of 15% of the prevailing market rate at the time of agreement. The security shall be released within a period of thirty days after the date of satisfactory performance of the agreement.
