Section 22 in Tamil Nadu Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act, 2019
22. Sale-purchase of produce.
(1)The contracted produce, livestock and its product shall be outside the ambit of the regulation of the Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987 (Tamil Nadu Act 27 of 1989).(2)The contract farming purchaser shall buy the entire pre-agreed quantity of one or more produce of the contract farming producer,-(a)in case, production support under section 14 has been provided for the contract, the contract farming purchaser shall buy the pre-agreed quantity of the produce at pre-agreed rate, as may be prescribed, considering the quantity to be at par with fair average quality, owning responsibility of maintaining the quality. The contract farming purchaser shall also buy the rest of the pre-agreed quantity at a rate mutually acceptable to both the parties but not lower than the fixed percentage of the price as may be prescribed, payable for fair average quality, as provided in the agreement:Provided that below fair average quality produce may be bought by other buyers for its or their specific purposes as under section 24 and as mentioned in the agreement;(b)in case of contract only for buying, the contract farming purchaser shall buy the pre-agreed quantity at pre-agreed rate to the extent, commensurate to fair average quality, as mentioned in the agreement. The contract farming purchaser shall also buy the rest of the produce over and above the pre-agreed quantity at a rate mutually acceptable to both the parties.(3)Notwithstanding anything contained in the Essential Commodities Act, 1955 (Central Act 10 of 1955) and Control Orders issued thereunder and any other law for the time being in force, the provision of stock limit shall not be applicable on such contract farming purchaser purchasing produce for trade or processing or export to the extent of quantity purchased under contract farming.(4)Only electronic weighing instruments or other such instruments, which also satisfy the requirements of such weights and measures as are prescribed by the Standards of Weights and Measures Act, 1976 (Central Act 60 of 1976) and the rules made thereunder, or any other provision of law in force for such purpose, shall be used for weighing or measuring produce.(5)Weighing instruments, weights and measures to be used for weighing or measuring of contracted produce under this section may at any time be inspected, examined and checked by the Chairperson, ex-officio members of the Authority or by any other authorised officer.(6)The contract farming purchaser shall have to make all arrangements for purchase and provide materials required for filling and weighing or measuring of the produce, in advance, when the produce is to be taken by the contract farming producer for delivery to the contract farming purchaser at the agreed place. The contract farming purchaser shall also be responsible to make the weighment or measurement immediately and after the weighment or measurement is over, shall take the delivery of the produce, forthwith by issuing a receipt slip with the details of sale proceeds, as may be prescribed.(7)The contract farming purchaser shall be considered to have thoroughly inspected the produce at the time of delivery and have no right to retract it.(8)The contract farming purchaser shall make the payment to the contract farming producer of the value of the produce delivered by the contract farming producer as agreed to in the agreement, and the same shall be made through electronic clearance on the spot or as per the terms laid down in the contract, not inconsistent with this Act or the rules made thereunder:Provided that in case of seed and such other produce where quality is to be assessed later on, payment of two-third of the value of the produce is to be made at the time of delivery of the produce and the remaining one-third of payment after assessment of the quality as prescribed.(9)In case, payment is not made on the spot as per the terms of the contract, as under sub-section (8), a penal interest as prescribed, shall be levied for late payment upto thirty days. If the said payment is not made within thirty days, it shall be recovered as an arrear of land revenue with interest as prescribed, till such time as it is recovered and paid to the contract farming producer.
