No: 37 Dated: Oct, 01 2019

THE TAMIL NADU AGRICULTURAL PRODUCE AND LIVESTOCK CONTRACT FARMING AND SERVICES (PROMOTION AND FACILITATION) ACT, 2019

(Act No. 37 of 2019)

     An Act to provide for improved production and marketing of agricultural produce, livestock and its products through holistic contract farming and to facilitate the contracting parties to develop mutually beneficial and efficient contract farming system and also promote services contract, by putting in place a friendly and effective institutional mechanism and conducive regulatory and policy frame work for contract farming and lay down procedures and systems and the matters connected therewith and incidental thereto.

    Be it enacted by the Legislative Assembly of the State of Tamil Nadu in the Seventieth Year of the Republic of India as follows:-

CHAPTER I

Preliminary

1. Short title and commencement. - (1) This Act may be called the Tamil Nadu Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act, 2019.

(2) It shall come into force on such date as the State Government may, by notification, appoint.

2. Definitions. - In this Act, unless the context otherwise requires,-

(a) "agreement" means the contract farming agreement between the contract farming purchaser, who offers to purchase the agricultural produce or livestock or its products and the contract farming producer, who agrees to produce the crop or rear the livestock, under which the production or rearing and marketing of an agricultural produce or livestock or its product as the case may be, is carried out as per the conditions laid down in the agreement not inconsistent with this Act or any other law for the time being in force, and includes the agreement between the service contract purchaser, or such other purchaser and contract farming producer made under this Act;

(b) "agriculture" means growing or cultivation of plants or produce of agriculture, horticulture, apiculture, sericulture, or forest or any other such activity for the purpose of food, fodder, fiber, bio-fuel and raw materials for agro-industries;

(c) "agricultural produce" includes all produce, whether minimally processed or not, of agriculture, horticulture, apiculture, sericulture, animal husbandry or forest or any other such activity identified for contract under this Act;

(d) "Authority" means the Tamil Nadu State Contract Farming and Services (Promotion and Facilitation) Authority established under section 3;

(e) "Chairperson" means the Chairperson of the State Contract Farming and Services (Promotion and Facilitation) Authority, appointed by the Government under section 4;

(f) "committee" means "Dispute Settlement Committee" constituted under section 28;

(g) "company" means a public limited company registered under the Companies Act, 2013; (Central Act 18 of 2013)

(h) "contract" means legally enforceable agreement made under this Act;

(i) "contract farming" means farming by a contract farming producer as specified under written agreement with contract farming purchaser to the effect that agricultural produce including livestock or its product shall be purchased by the contract farming purchaser or by his duly authorised agent therefor;

(j) "contract farming producer" means a farmer or farmer producer organisation, who or which has agreed to produce or rear the crop or livestock or its product as specified and in the manner set forth in the agreement and supply the same to the purchaser or his duly authorised agent therefor, as per the terms and conditions specified in the agreement;

(k) "contract farming purchaser" means a person, who has entered into contract farming agreement under this Act;

(l) "farmer" means a person, who is engaged in production of agricultural produce or rearing of livestock by himself or by hired labour or otherwise, including lessee, tenant and sharecropper;

(m) "farmer producer company" means a company of farmer producer members as defined in Part-IXA of the Companies Act, 1956, (Central Act 1 of 1956) including any amendments thereto and re-enactment thereof and incorporated with the Registrar of Companies;

(n) "farmer producer organisation" means an association of farmers, by whatever name or form it is called, registered under any law for the time being in force, which is to mobilise farmers and build their capacity to collectively leverage their production and marketing strength;

(o) "firm" means a firm as defined under the Indian Partnership Act, 1932 (Central Act IX of 1932);

(p) "force majeure" means an event that is unforeseeable, unavoidable and outside the control of the contracting parties, comprising flood, drought, bad weather, earthquake, epidemic outbreak of disease and insects-pests attack and other like events;

(q) "fund" means the Tamil Nadu State Contract Farming and Services (Promotion and Facilitation) Authority Fund constituted under section 32;

(r) "Government" means the State Government;

(s) "lease" means a contract between the land or premises owner, the lessor and the contract farming purchaser the lessee under this Act, not inconsistent with any other law for the time being in force;

(t) "livestock" includes domesticated animals like cattle, buffalo, goat, sheep, pig, and also includes other species like poultry, fish and other aquatic species, birds and such other animal species as permissible under law, as decided by contracting parties under section 13 for the purpose of this Act;

(u) "livestock product" means all products of livestock, as decided by the contracting parties under section 13 for the purpose of this Act;

(v) "marketing" means all activities involved in the flow of agricultural produce or livestock or its product from production point commencing at the stage of harvest or otherwise, as the case may be, till the same reaches the ultimate consumer viz. grading, processing, storage, transport, channels of distribution and all other functions involved in the process;

(w) "person" includes individual, Hindu Undivided Family, a co-operative society or a company or firm or an association or a body of individuals, whether incorporated or not;

(x) "notification" means a notification published in the Tamil Nadu Government Gazette;

(y) "premises" include building, structure, enclosure and surroundings thereof meant for rearing of livestock and activities connected therewith or incidental thereto;

(z) "prescribed" means prescribed by the rules made under this Act;