Declaration of Factory Zone

(1) The Government shall have the power to declare, by notification, any area as factory zone for the purpose of supply of oilpalm fresh fruit bunches to the factory specified for the purpose or purchase of oilpalm FFBs and any other oilpalm product by the factory. (2) Where a particular area is declared as factory zone under sub-section (1), the oilpalm growers in that area shall supply the fresh fruit bunches from the oilpalm plantations grown in that area only to the factory to whom the factory zone is attached and to none else. (3) Where a particular factory zone is declared under this section, the occupier of the factory in the factory zone concerned and for which the zone is declared, shall buy all the oilpalm FFBs produced by all the oilpalm growers or their co-operative societies in that factory zone as are offered for sale by them at a price which shall not be less than the price fixed by the authority empowered to fix the price under this Act.