Chapter III COMMODITY FEDERATIONS

1. (1) There shall be constituted by the Government, by notification, a Commodity Federation for each notified Commodity, which shall consist of,-
   • (i) the general body of the Federation ;
   • (ii) a President to be elected by the general body in the manner prescribed.
2. (2) The general body of the Federation shall consist of the elected delegates of all the Parishads wishing to associate with the concerned Federation.
3. (3) There shall be an executive Committee for the Federation consisting of the President of the Federation and eight members to be elected by the General body in the manner prescribed.
4. (4) Save as otherwise provided in this Act the term of office of the President and members of the Federation and its executive Committee shall be three years from the date of election.

The Federation shall have power,

1. (i) to take steps for the improvement of production, marketing and processing of the crop or commodity ;
2. (ii) conduct marketing and processing operations in a manner calculated to benefit the members economically ;
3. (iii) to regulate the area or production of the crop or commodity ; and
4. (iv) to give directions to the Parishads to achieve the above objectives.

The monies of the Federation shall consist of,

1. (i) such funds as are transferred by the Rashtra Parishad; and
2. (ii) such fees, share of establishment cost and share of expenditure in regard to common benefits or utilities, levied on its members, as also share capital, grants, other financial assistance and assets transferred by the Government or other body or individual to the Federation.

Notwithstanding anything contained in any other law for the time being in force, it shall be lawful for the Federation to issue directions in consultation with the Rashtra parishad to the cooperative processing organisations and the Government owned processing units, in regard to pricing of the raw material and marketing of the product consistent with the implementation of the objectives of the Federation which shall be complied with.