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Rules 91[A-I] PART VII-B

"PART VII-B

CONTRACT FARMING

91A. Registration of Contract Farming Sponsor.- (1) As provided under sub-section (1) of Section 131C of the Act, the Contract Farming Sponsor for getting himself registered shall make an application in writing to the concerned Secretary of the market committee where the contract is being entered into which shall be called as the Sponsor Registering Authority in Form 54 along with the documents specified in that Form, with a fee of rupees five hundred per year payable to the concerned market committee.

(2) On examination of the application made under Sub-rule (1) and after ascertaining the payment of necessary fees for registration, the Sponsor Registering Authority concerned shall record the particulars of such application in the register maintained in Form 55 and dispose of the application within a period of thirty days from the date of receipt of the application and the registration certificate shall be given inForm 56.

(3) The Contract Farming Agreement between the Contract Farming Producer and the Contract Farming Sponsor shall normally be in Form 57 or Form 57A. However, the Contract Farming Producer and the Contract Farming Sponsor shall be at liberty to mutually decide the terms and conditions of the Contract Farming Agreement, which shall not be contrary to the provisions of the Act and the Rules and the same shall be informed to the registering authority.

(4) Contract Farming Sponsor shall submit within fifteen days from the end of the month of execution of agreement, the original copy of the Contract Farming Agreement entered with the Contract Farming Producer for registration to the Secretary of the market committee to be called as Sponsor Registering Authority hereunder who shall acknowledge and record the same in Register maintained in his office inForm 58.

91B. Purchase of Produce under Contract Farming Agreement.- The Contract Farming Sponsor on purchase of agricultural produce under the Contract Farming Agreement in the market area shall pay market fee as specified under Section 65 of the Act to the concerned market committee.

91C. Contract Farming Sponsor prohibited from raising permanent structure on Contract Farming Producers' land.- Notwithstanding anything contained in the Contract Farming Agreement, the Contract Farming Sponsor is prohibited from raising any permanent structure of any kind or creating any leasehold rights or charge of whatever nature on the land of the Contract Farming Producer.

91DObjects of Contract Farming Agreement.- The Contract Farming Agreement shall be entered by the Contract Farming Sponsor, exclusively, for the purchase of the agricultural produce from the Contract Farming Producer and it shall be construed to mean only as such for all purposes.

91E. Period of Contract Farming Agreement.- The minimum period of Contract Farming Agreement shall be for one crop season and the maximum period shall be as may be mutually decided between the sponsor and the producer which shall not be against the intention of Contract Farming Agreement.

91F. Recovery of loans and advances given by the Contract Farming Sponsor to the Contract Farming Producer.- Loans and advances if any given by the contract farming sponsors to the contract farming producer shall be recovered only from sale proceeds of the agricultural produce and in no case by sale of the land regarding which the Contract Farming Agreement has been entered into.

91 G. Submission of Annual Accounts by Contract Farming Sponsor.- The Contract Farming Sponsor shall submit annual accounts inForm 59 before 30th June every year, to the Sponsor Registering Authority in respect of all transactions undertaken by him during the previous market year.

91H. Dispute Settlement Authority of Contract Farming.-

  1. (1) Any dispute arising out of the Contract Farming Agreement shall be referred for settlement to the disputes committee constituted under Section 84 of the Act, by making an application in writing accompanied with a prescribed court-fee stamp for the purpose of settlement of dispute.

(2) The Dispute Settlement Authority, after verification of the documents and after giving reasonable opportunity of being heard to the concerned parties shall give its decision within a period of thirty days.

91 I. Appeal against the decision of the Dispute Settlement Authority.- (1) Any person who is aggrieved by the decision of the Dispute Settlement Authority under rule 91H may, within a period of thirty days from the date of such decision, file an appeal before the Director of Agricultural Marketing accompanied with a specified court-fee stamp and copy of such decision appealed against.

(2) The appellate authority, after giving reasonable opportunity of being heard to all the concerned parties and after verifying the records and documents, shall decide the appeal within a period of thirty days from the date of receipt thereof and the decision of the appellate authority shall be final.​