Refusing purchase of fresh fruit bunches.

General199822 sections

Statutory text

(1) In the event of failure on the part of the occupier of the factory to buy all the fresh fruit bunches from the growers in the factory zone declared in relation to a factory, without any valid reason, the occupier of the factory shall be liable to compensate the loss that may have been caused to the grower on account of non- purchase of the oil palm FFBs by the factory in addition to the penalty specified in section 12.
(2) Where an occupier of a factory refuses to buy particular consignment or consignments of oil palm FFBs from a grower, he shall assign reasons therefor in writing: Provided that damage, inefficient running, breakdown of plant machinery, failure to use capacities and any other operational problems shall not be valid reasons for refusal of the consignment of oil palm FFBs and shall be treated as the failure on the part of the factory to buy the oil palm FFBs for purposes of sub-section (1): Provided further that the Commissioner shall be the authority to decide whether there are valid reasons for the failure to buy oil palm FFBs and his decision thereon shall be final.

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