The Punjab Contract Farming Act, 2013

1. (1) This Act may be called the Punjab Contract Farming Act, 2013.
2. (2) It shall come into force at once.

In this Act, unless the context otherwise requires,-

1. (a) "Act" means the Punjab Contract Farming Act;
2. (b) "agreement" means the 'contract farming agreement' between the buyer, who offers to purchase the produce and the Producer, who agrees to produce the crop, under which the production and marketing of an agricultural produce is carried out as per the conditions laid down in the agreement. The buyer has to purchase the produce as per pre-determined price in the agreement carried out prior to sowing of the crop. The buyer shall support the production through supply of inputs, land use, technical advice or any other activity related thereto, as may be mentioned in the agreement;
3. (c) "Agricultural produce" means all produce, whether processed or not, of agriculture, apiculture, sericulture, horticulture, animal husbandry or forest as specified in the Schedule appended to this Act;
4. (d) "bye-laws" means the bye-laws notified by the Commission;
5. (e) "Commission" means the Commission constituted under section 15 of this Act;
6. (f) "Chief Commissioner" means a Chief Commissioner of the Commission;
7. (g) "Collector" means the Collector of the District or any Officer appointed by the State Government, by notification, for carrying out the purposes of this Act;
8. (h) "Committee" means a market committee established and constituted under the Punjab Agricultural Produce Markets Act, 1961 (Punjab Act No. 23 of 1961);
   • (i) "Company" means a public limited company registered under the Companies Act, 1956 (Central Act No. 1 of 1956);
9. (j) "Co-operative Society" means a society as defined in the Punjab Agricultural Produce Markets Act, 1961 (Punjab Act No. 23 of 1961);
10. (k) "market" means a market established and regulated under the Punjab Agricultural Produce Markets Act, 1961, notified as market area;
11. (l) "notification" means a notification published in the Official Gazette;
12. (m) "prescribed" means prescribed by rules made under this Act;
13. (n) "Registering Authority" means an Authority to register an agreement between the producer and the buyer as prescribed;
14. (o) "registration" means the registration of an agreement under section 4 of this Act;
15. (p) "rules" means the rules made under this Act;
16. (q) "State Government" means the Government of the State of Punjab in the Department of Agriculture; and
17. (r) "Schedule" means the Schedule appended to this Act.

The State Government shall, by notification, declare the control over the purchase, sale, storage and processing of such agricultural produce, which are to be covered under the Contract farming in the Schedule.

Contract farming agreement shall be governed in the manner as laid down hereinafter:-

1. (1) The buyer shall register himself with the Registering Authority of the area where the produce is to be grown, in such a manner, as may be specified in the bye-laws.
2. (2) The registration, for a period, can be made after paying the requisite fee as specified in the bye-laws.
3. (3) The buyer shall get the agreement registered with the Registering Authority authorized in this behalf. The agreement shall be in such Form, containing such particulars and terms and conditions, as may be specified in the bye-laws.
4. (4) Dispute arising out of an agreement may be referred to the Collector for settlement.

Sale of agricultural produce

1. (1) The produce under the agreement can be sold in the market yard, notified under section 7 of the Punjab Agricultural Produce Markets Act, 1961, as provided therein or it may be directly sold from farmer's field or at a place mentioned in the agreement.
2. (2) The net weight of agricultural produce to be filled in a packing unit, may be a bag or palli, should be the same as specified in the Punjab Agricultural Produce Markets (General) Rules, 1962.
3. (3) The buyer shall have to make all the arrangements and provide material required for filling and weighing of the agricultural produce in advance when the produce is to be taken by the producer for delivery to the buyer at the agreed place. The buyer shall also be responsible to make the weighment immediately and after the weighment is over shall take the delivery of the produce forthwith by issuing a receipt slip with the details of sale proceeds, as specified in the bye-laws.
4. (4) The buyer shall be considered to have thoroughly inspected the produce at the time of delivery and have no right to retract it. The buyer shall have to take the delivery of the entire lot of the produce brought for delivery.
5. (5) The buyer shall have to make the payment to the producer of the value of the agricultural produce delivered by him by the producer as agreed in the agreement and shall be made through account payee cheque or bank draft or electronic clearance on the spot when the delivery is taken: Provided that if the payment is not made on the spot, then it will be made with interest as prescribed for the late payment upto thirty days. If the said payment is not made within thirty days, it will be recovered as arrear of land revenue with interest as prescribed, till it is recovered and paid to the producer.
6. (6) The sale, purchase, storage or processing is to be regulated and trade allowances will be applicable as provided under the Punjab Agricultural Produce Markets Act, 1961.

If there is any due from any party to the agreement, it will be recovered as arrears of land revenue.

If there are sufficient reasons to believe that the buyer is attempting to evade the payment to the producer under sub-section

1. (5) of section 5 of this Act, the agricultural produce purchased by the buyer can be seized in the manner and procedure as prescribed.

The producer shall get support to the production through supply of inputs, land use, technical advice and any other activity related thereto as specified in the agreement: Provided that the buyer shall supply all the material and technical advice as per recommended practices by the authorities as may be specified in the bye-laws: Provided further that the buyer shall be responsible for all such activities undertaken for the best of production and in case of failure or any loss, he shall be responsible for the extent as decided by the Commission keeping in view the circumstances and local conditions over there.

Notwithstanding anything contained in the agreement, no title, rights, ownership or possession shall be transferred or alienated or vest in the buyer or his successor or his agent as the case may, as a consequence arising out of the agreement.

Notwithstanding anything contained in the agreement, the buyer is prohibited from raising any permanent structure or creating any kind of leasehold rights or any kind of charge of whatever nature on the Land of the producer: Provided that any kind of temporary structure can be raised as agreed upon in the agreement which is related to production process of agricultural produce or its marketing and will be removed before the expiry of the agreement, if not removed then its ownership shall vest in the producer after the expiry of the agreement.

The agreement shall be made by the buyer exclusively for the purchase of the agricultural produce and providing inputs, Land use, the advice or any other activity related thereto as specified in the agreement.

The minimum period of agreement shall be for one crop season and the maximum period shall be three years.

Recovery of loans and advances given by the buyer to the Producer can be recovered from sale proceed of the agricultural produce in the procedure and manner as prescribed and in no case, be realised by way of sale or mortgage or lease of the land regarding which the agreement has been entered into.

The buyer shall have to submit reports of accounts in relation to agreement entered into and executed for contract farming to the Registering Authority as well as the commission, as prescribed.

1. (1) The State Government shall, by notification, constitute a Commission to be called the Punjab Contract Farming Commission for the purposes of this Act: Provided that till such time the Commission is not constituted by the State Government, it may, by notification, nominate an officer of the State Government, not below the rank of a Financial Commissioner to perform the functions and exercise the powers of the Commission under this Act.
2. (2) The Commission shall be a body corporate, known by the aforesaid name having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable and to contract and shall, by the said name, sue or be sued.
3. (3) The Head Office of the Commission shall be at Chandigarh or at such place, as the State Government may notify from time to time.

1. (1) The Commission shall consist of a Chief Commissioner and three Commissioners and their appointment shall be made by the State Government.
2. (2) The Chief Commissioner shall be a retired officer in the rank and status of the Chief Secretary of the State of Punjab or Secretary to the Government of India.
3. (3) The Commissioners shall be eminent experts with at least twenty years of experience in the field of agriculture, agriculture marketing and/or retired officers of the Government of Punjab in the rank and status of Grade-A or its equal rank and status in any of the services of the State of Punjab including officers of the All India Services from Punjab cadre.
4. (4) There shall be a Member Secretary from amongst the officers of the Government of Punjab in the rank and status of Grade-A or its equal rank and status in any of the services of the State of Punjab.

1. (1) The Chief Commissioner shall have powers of general superintendence and direction in the conduct of the affairs of the Commission. The Chief Commissioner shall preside over the meetings of the Commission as well as exercise and discharge the powers and functions of the Commission vested in him in accordance with the rules framed under this Act.
2. (2) In case of absence of the Chief Commissioner or vacancy in the office of the Chief Commissioner, the State Government may nominate one of the Commissioners to perform the functions and exercise the powers vested in the Chief Commissioner as long as the vacancy or absence continues.
3. (3) A Commissioner nominated to discharge the functions and powers of the Chief Commissioner under sub-section
4. (2) shall not be entitled to any compensation, allowance or facility in addition to what he would be entitled to as a Commissioner.
5. (4) The Chief Commissioner shall also be responsible for: -
   • (a) the day-to-day administration of the Commission;
   • (b) drawing up of proposal for the Commission's work programmes in the State;
   • (c) implementing the work programmes and the decisions adopted by the Commission;
   • (d) ensuring that the Commission carries out its tasks in accordance with the requirements of its users, in particular with regard to the adequacy of the services provided and the time taken;
   • (e) the preparation of the Statement of revenue and expenditure and the execution of the budget of the Commission; and
   • (f) developing and maintaining contact with the State Government, and for ensuring a regular dialogue with all concerned.

1. (1) The Chief Commissioner and the Commissioners shall hold office for a term of five years from the date on which they enter upon their respective offices, or until they attain the age of sixty five years, whichever is earlier and they will not be entitled for re-appointment.
2. (2) If a person already holding an office is appointed as the Chief Commissioner or Commissioner, he shall have to resign or seek retirement from that office before joining the Commission.
3. (3) The Chief Commissioner or a Commissioner shall, before he enters upon his office, make and subscribe, before the Governor or some other person appointed by him in that behalf, an oath or affirmation according to the form set out for this purpose in this Schedule.
4. (4) The Chief Commissioner or a Commissioner may, at any time, by writing under his hand addressed to the Governor, resign from his office. They would also be liable for removal from the office in the manner provided under section 19.
5. (5) The salaries and allowances payable to and other terms and conditions of service of the Chief Commissioner and the Commissioners shall be the same as those of the State Chief Information Commissioner and the State Information Commissioner respectively as laid down in sub-section
6. (5) of section 16 of the Right to Information Act, 2005. All provisions of the aforesaid sub section shall apply mutatis mutandis to the Chief Commissioner and the Commissioners appointed under this Act.
7. (6) The State Government shall provide the Commission with such officers and employees as may be necessary for the efficient performance of the Commission under this Act.

Removal and suspension of the Chief Commissioner or the Commissioner from the office in certain circumstances

1. (1) The State Government may remove the Chief Commissioner or any Commissioner from the office after complying with the provisions of sub-section (2), if he has,-
   • (i) been adjudged insolvent; or
   • (ii) been convicted of an offence which, in the opinion of the State Government, involves moral turpitude; or
   • (iii) become physically or mentally incapable; or
   • (iv) acquired such financial or other interest as is likely to affect prejudicially his functions in any of the said capacities; or
   • (v) so abused his position as to render his continuance in office prejudicial to public interest.
2. (2) Notwithstanding anything contained in sub-section (1), the Chief Commissioner or any Commissioner, shall not be removed from his office, unless;
   • (i) a reference is made by the State Government to the Chief Justice of the High Court of Punjab and Haryana seeking an enquiry and recommendation on the proposed removal of the Chief Commissioner or the Commissioner alongwith the grounds for the removal and material supporting such proposal;
   • (ii) the reference is duly enquired into by an inquiry committee headed by a sitting or retired Judge of the High Court or any other person appointed by the Chief Justice of the High Court of Punjab and Haryana; and
   • (iii) the inquiry committee makes recommendation that the Chief Commissioner or the Commissioner ought to be removed on such ground or grounds.
3. (3) The State Government may suspend the Chief Commissioner or the Commissioner in respect of whom a reference has been made to the Chief Justice under sub-section (2).

1. (1) It shall be the duty of the Commission to ensure proper implementation of this Act and to make suggestions to the State Government for promotion and better performance of contract farming. For this purpose, the Commission may,-
   • (a) entertain and dispose of appeal under section 24;
   • (b) take suo-moto notice of failure to perform as per agreement and refer such cases for decision to the Collector concerned or pass such order itself, as may be appropriate;
   • (c) carry out inspections of offices entrusted with the task of contract farming and also the office of the Collector;
   • (d) recommend Departmental action against any officer or employee of the State Government who has failed in due discharge of functions cast upon him under this Act;
   • (e) recommend changes in procedures for contract farming which will make the subject more transparent, easier and successful: Provided that before making such a recommendation, the Commission shall consult the Administrative Secretary in-charge of the department concerned to whom the matter relates;
   • (f) recommend additional crops to be notified for contract farming under section 23 and may also suggest modifications in the notifications already issued for better implementation of this Act; and
   • (g) issue general instructions, not inconsistent with the provisions of this Act for the guidance of officers and the Collector related to it.
2. (2) Where the Commission is satisfied that there are reasonable grounds to inquire into a matter arising out of the provisions of this Act, it may, suo-moto, initiate an inquiry in respect thereof.
3. (3) The Commission shall, while inquiring into any matter under this section, have the same powers as are vested in a Civil Court while trying a suit under the Code of Civil Procedure, 1908, in respect of the following matters, namely:-
   • (a) summoning and enforcing the attendance of persons, compelling them to give oral or written evidence on oath and producing documents or things;
   • (b) requiring the discovery and inspection of documents;
   • (c) receiving evidence on affidavits;
   • (d) requisitioning any public records or copies thereof from any court or office;
   • (e) issuing summons for examination of witnesses or documents; and
   • (f) any other matter which may be prescribed.
4. (4) Every year, the Commission shall also prepare:-
   • (a) a general report covering all the activities of the Commission in the previous year;
   • (b) programmes of work;
   • (c) the annual accounts for the previous year; and
   • (d) the budget for the coming year;
5. (5) The Commission shall forward the general report and the programmes to the State Government and shall publish it.
6. (6) The Commission shall approve its financial expenditure for the contract farming in the State as well as day to day activities of the Commission and report to the State Government.
7. (7) The Member Secretary under the control of Chief Commissioner shall have administrative control over the officers and other employees of the Commission.

1. (1) The State Government shall consider the recommendations made by the Commission under clauses (d),
   • (e) and
   • (f) of sub-section
2. (1) of section 20 and send information to the Commission of action taken within thirty days or such longer time as may be decided in consultation with the Commission. In case the Government decides not to implement any of the recommendations of the Commission, it shall communicate its decision to the Commission with reasons thereof.
3. (2) The Commission shall prepare an annual report of the recommendations made by it under section 20 alongwith the action taken and reasons for not taking action, if any.

Power to order production of accounts and powers of entry, inspection and seizure

1. (1) Any officer empowered by the Commission in this behalf may, for the purposes of this Act, require any buyer to produce before him the accounts and other documents and to furnish any information relating to the stock of agricultural produce or purchase, sale, storage and processing of agricultural produce through contract farming by such person and also to furnish any other information relating to the payment to the producer under the Act by such person.
2. (2) All accounts and registers maintained by any buyer and documents relating to the stock of agricultural produce or purchase, sale, storage and processing of such agricultural produce under contract farming in his possession and the office, establishment, godown or vehicle of such person shall be open to inspection at all reasonable times, by such officer.
3. (3) If such an officer has reason to believe that any buyer is attempting to evade the payment to the producer due from him or he has purchased any agricultural produce in contravention of any provision of this Act or the rules or bye-laws in force, he may, for reasons to be recorded in writing, seize such accounts, registers or documents of such person, as may be necessary, and shall grant a receipt for the same and shall retain the same only so long as may be necessary for examination thereof or the prosecution of the person concerned, but not in any case exceeding the period of sixty days.
4. (4) For the purpose of sub-section
5. (2) or sub-section (3), such officer may enter and search any place of business, warehouse, office, establishment, godown or vehicle where he has reason to believe that such person keeps, or is for the time being keeping, any accounts, registers, documents or stock of agricultural produce relating to his business.
6. (5) The provisions of section 100 of the Code of Criminal Procedure 1973, shall, so far as may be, apply to a search under sub-section (4).
7. (6) Where any books of account or other documents are seized from any place and there are entries therein making reference to quantity, quotation, rates, receipt or payment of money or sale or purchase of goods, such books of account or other documents shall be admitted in evidence without witness having to appear to prove the same, and such entries shall be prima facie evidence of the matters, transactions and accounts purported to be recorded therein.

The State Government, by notification, amend the Schedule, to add or omit any other item of agricultural produce specified therein.

1. (1) Any persons aggrieved by the order passed under the provisions of this Act or rules or bye laws made thereunder, may appeal to the Commission in a manner as prescribed. The Commission shall dispose off the appeal within thirty days after giving the parties a reasonable opportunity of being heard and the decision of the Commission shall be final: Provided that the person filing the appeal shall have to deposit amount equal to fifty percent of the amount due against him, as decided by the Collector under sub-section
2. (4) of Section 4 of this Act, with the commission through the bank draft. If the Commission dismisses the amount is to be paid by the petitioner within fifteen days to the beneficiary, otherwise it will be recovered as arrears of land revenue.
3. (2) The decision of the Commission in the appeal shall have force of the decree as of the civil court and shall be enforceable as such and decrial amount shall be recovered as arrears of land revenue.

If the buyer contravenes the provisions of this Act shall, on conviction, the punishable with simple imprisonment which may extend to one month or with fine which shall not be less than one lac rupees, but may extend to ten lac rupees or with both, and in the case of a continuing contravention with a fine which in addition to such fine as aforesaid, may extend to five hundered rupees for every day after the date of first conviction during which the contravention is continued. If the Producer contravenes the provisions of this Act shall, on conviction, be punishable, with simple imprisonment which may extend to one month or with fine which shall not be less than five thousand rupees, but may extend to five lac rupees or with both, and in the case of a continuing contravention with a fine which in addition to such fine as aforesaid, may extend to one hundred rupees for every day after the date of first conviction during which which the contravention is continued.

No civil court shall have jurisdiction to entertain any suit or proceedings in respect of any matter, the cognizance of which can be taken and disposed of by any authority empowered by this Act or the rules or bye-laws made thereunder.

1. (1) The State Government may, by notification, in the Official Gazette, make rules to carry out the purposes of this Act.
2. (2) Every rule made by the State Government under this Act, shall be laid, as soon as may be after it is made, before the House of the State Legislature, while it is in session, for a total period of ten days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, the House agrees in making any modification in the rule, or the House agrees that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, however, any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

The Commission may frame bye-laws for the conduct of its business and regulation of contract farming in the State or any such matter to fulfil the purposes under this Act, as the Commission may deem fit: Provided that the bye-laws shall be issued by the notification and published in the Official Gazette of the State Government.

1. (1) No suit shall be instituted against the Commission, the Chief Commissioner or any Commissioner or employee thereof or any person acting under direction of the Commission, the Chief Commissioner, any Commissioner or employee for anything done or the purporting to be done under this Act, until the-expiration of two months next after a notice in writing, stating the cause of action, the name and place of abode of the intending plaintiff and the relief which he claims, has been, in the case of the Commission, delivered to him or left at its office, and in the case of any such Chief Commissioner, Commissioner, employee or person as aforesaid, delivered to him or left at his office or usual place of abode, and the plaint shall contain a statement that such notice has been so delivered or left.
2. (2) Every such suit shall be dismissed unless, it is instituted within six months from the date of accrual of cause of action.

The State Government may give such directions to the Commission as in its opinion are necessary or expedient for carrying out the purposes of this Act.

The Chief Commissioner, The Commissioners and the employees of the Commission shall be deemed to be public Servants within the meaning of section 21 of the Indian Penal Code.

1. (1) No suit, prosecution or other legal proceeding shall lie against any person for anything which is done in good faith or intended to be done in pursuance of this Act or any rule or bye-laws made thereunder.
2. (2) No act done or proceedings taken under this Act by the Commission shall be invalid merely on the ground of existence of any vacancy or by reason of defect or irregularity in its constitution or absence of any Commissioner in its meeting.

If any difficulty arises in giving effect to the provisions of this Act, the State Government may, by order, not inconsistent with the provisions of this Act, remove the same: Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act.

Wheat (Kanak). 2. Barley (Jau). 3. Maize (Makki). 4. Great Millet (Jowar). 5. Spiked Millet (Bajra). 6. Paddy and Rice (Dhan and Chawal). 7. Gram and Kabli Gram (Chana Kala and Safaid). 8. Green Gram (Mung). 9. Black Gram (Mash). 10. Phaseolus aconitifolius (Moth). 11. Lentil (Massur). 12. Indian Colza (Sarson). 13. Indian Rale (Toria). 14. Rochet (Tara Mira). 15. Cotton Seed (Banaula). 16. Ground - nut (Shelled and unshelled) (Mung Phalli). 17. Cotton (Ginned and unginned) (Kapas and Rui). 18. Gluster Bean (Guara). 19. Dry and Green Fooder (Suka and Subaz Chara). 20. Potato (Alu). 21. Sweet Potato (Shakarkandi). 22. Onion Dry (Piaz Khushak). 23. Arum (Arvi). 24. Cauli Flower (Phul Gobi). 25. Cabbage (Band Gobi). 26. Carrot (Gajjar). 27. Radish (Muli). 28. Turnip (Salgam).. 29. Tomato (Tamatar). 30. Brinjal (Baingan). 31. Lady Finger (Bhindi). 32. Peas Green (Matar Hara). 33. Garlic Dry (Lashan Khushak). 34. Orange (Malta). 35. Chillies (Dry and Green) (Mirach Khushak and Hari). 36. Gur. 37. Shakkar. 38. Khandsari. 39. Dry Peas (Mattar Khushak). 40. Water Melon (Tarbuz). 41. Wool (Oon). 42. Tinda Gourd (Tinda). 43. Bottle Gourd (Lauki). 44. Pampkin round (Ghia Kadu). 45. Squash or Red Gourd (Halwa Kadu). 46. Bitter Gourd (Karela). 47. Cow peas (Lobia) 48. French Beans, Rajmaha and Soya beans. 49. Long Melon (Tarr) 50. Elephant Foot (Zimikand). 51. Cucumber (Khira). 52. Chappan Kadu. 53. Turmeric (Haldi). 54. Musk Melon (Kharbooza) 55. Mango (Am). 56. Mandarin (Sangtra). 57. Lime (Nimboo). 58. Lemon (Galgal and Khatta). 59. Apple (Saib). 60. Guava (Amrud). 61. Pear (Nashpati). 62. Anar. 63. Sweet Lime (Mitha). 64. Apricot (Khurmani). 65. Plum (Alu Bukhara and Alucha). 66. Peach (Aru). 67. Litchi. 68. Sapota (Chikoo). 69. Loquat. 70. Castaud Apple (Sharifa). 71. Sag (Palak and Saron) 72. Ginger (Adrak). 73. Heena (Mehndi). 74. Goat Hair. 75. Camel Hair. 76. Sesamum (Til) 77. Banana (Kela) 78. Kinnow. 79. Sweet Orange (Mousmbi). 80. Amla 81. Grapes (Angoor) 82. Papaya (Papita). 83. Musk Melon (Khakri) 84. Ber. 85. Jaman. 86. Spong Gourd (Ghia Tori). 87. Rat-Tail-Radish (Moongre). 88. Fenu Green (Mathi). 89. Colocasia (Kachalu). 90. Bhean. 91. Beet-Root (Chakander). 92. Onion Green (Hara Piaz). 93. Coriander Green (Hara Dhania). 94. Gram Raw (Chhotia). 95. Mint (Pondina). 96. Sweet Peper (Simla Mirch). 97. Pigenopea (Arhar). 98. Linseed (Alsi) 99. Maize Cob (Makki di Chhali). 100. Egyptian Clover (Barseem). 101. Indian clover (Serji). 102. Indian Mustard (Raya). 103. Cress/Gardencress (Hallon). 104. Oats (Javi) 105. Sunflower Seed. 106. Timber and Fire wood. 107. All Flowers. 108. Sugarcane.

[See Section 18(3)] FORM OF OATH OR AFFIRMATION TO BE MADE BY THE CHIEF COMMISSIONER/COMMISSIONER "I,____________ having been appointed Chief Commissioner/ Commissioner swear in the name of GOD that I will solemnly affirm bear true faith and allegiance to the Constitution of India as by law established, that I will uphold the sovereignty and integrity of India, that I will duly and faithfully and to the best of my ability, knowledge and judgment perform the duties of my office without fear or favour, affection or ill-will and that I will uphold Constitution of India and the laws made thereunder".