Mizoram Oil Palm (Regulation of Production and Processing) Act, 2004 (Act No. 13 of 2004)

THE MIZORAM OIL PALM (REGULATION OF PRODUCTION AND PROCESSING) ACT, 2004. Assembly Bill No. 12 of 2004 Act No. 13 of 2004 Passed on 23.11.2004 An ACT to provide for the Regulation of Cultivation of Oil Palm and}for orderly growth and processing thereof and for matters connected therewith. BE it enacted by the Legislative Assembly of the State of Mizoram in the Fifty Fifth Year of the Republic of India as follows : Short title, extent and commencement 1. (1) This act may be called the Mizoram Oil Palm (Regulation of Production and Processing) Act, 2004. Definition: 2. (2) It extends to whole of the State of Mizoram except the areas constituted as autonomous districts under the sixth schedule to the constitution of India. (3) It shall come into force from such date as may be notified by the State Government in the official Gazette. In this Act, unless the context otherwise requires, (1) "Advisory Committee" means the Mizoram Oil Palm Advisory Committee constituted under Section 3; (2) "Factory" means any premises including the precincts thereof or any part of which any manufacturing process connected with the processing of Oil Palm FFB is carried on with the aid of mechanical power; (3) "Factory Zone" means an area assigned to a factory under section 11; (4) "Government" means the State Government of Mizoram. (5) "Occupier of the factory" means the person who, or the authority which has the ultimate control over and, where the said affairs are entrusted to a Secretary, Manager, Managing Director, Executive Director or Chief Executive Director, such Secretary, Manager, Managing Director, Executive Director or Chief Executive Director shall be deemed to be the occupier of the. factory; Constitution of the Advisory Committee. 3. (6) "Oil Palm" means thepalm ofthe genus, Elaeis and includes the species, Elaeis guineensis;and Ela eis, Malanococcea or Corozooleifera and hybrids of these species; (7) "Oil Palm Officer" means the Oil Palm Officer appointed under section 8; (8) "Oil Palm FFB" means, the unprocessed Oil palm fresh fruit bunch and includes its loose form also; (9) "Oil Palm Grower" means a person who cultivates oil palm whether by himself or by his own servants or by hired labour or by members of his family or by his tenents and includes Oil Palm Growers Cooperative Society, but not a member thereofand a Company as defined in section 3 of the Com panies Act, 1956 (Central Act I of 1956); (10) "Oil Palm Growers Cooperative Society" means a Society registered under the Mizoram Cooperative Societies Act, \99\ , (Mi zoramAct ofl991) which has among its objects and functions the cultivation and sale of oil palm FFB by its members, and includes the Federation ofany such Societies; (II) "Oil PalmInspector" means tlfeOil Palm Inspector appointed under section 9; (12 ) "Oil Palm Product" means any productobtained directly from the oil palm and it includes palm oil.palm kernel; palm kernel cake, palm fatty acids, oil palm seeds and oil palm seedlings. (13) "Prescribed" meansprescribed by rules made under thisAct. (14) "Zonal Committee" means a Zonal Committee constituted under section 5. (I) As soon as may be after the commencement of this Act, the Government shall, by notification, constitute a Committee for the State to be called "The Mizoram Oil Palm Advisory Committee". (2) The Committee shall consist of the following members, namely : 2 Function of the Advisory Committee 4. (a) the Minister in-charge ofAgriculture who shall be the Chairman; (b) three members of the Legislative Assembly of the State to be nominated by the Government; (c) Secretaries to t~e Government in-charge ofAg riculturc; Horticulture, Industties and Finance; (d) Heads o f Departments ofAgriculture, Horticul ture and Industries; (e) Joint Director, ICAR Research Complex for NEH Region, Mizoram Centre, Kolasib, Mizoram or his rep rescntative; (I) the Director, Regional Research Laboratory, Jorhat , Assam.. (g) a representative of the Government of'India, in the Ministry of Agriculture; (h) four representatives of thc oil palm process ing Factories, as may be nominated by the Government; (i) four persons from among the oil palm Growers as may he nominated by the Government; U) the Oil Palm Officer. (3) The Oil Palm Officer sha ll be the Ex-Officio Member Secretary of the Committee. (tl) The term of office of the Committee shall be three years, but the Government may, for reasons to be re corded in writing, re-constitute the Comm ittee at any time be fore the exp iry of the term. It sha ll be the duty ofthe Advisory Conun ittee to advise the Gove rnment on the followin g matters namel y : (a) (b) (c) extension ofthe areas under cultivation ofoil palm; problems relating to the cultivation of oil palm; problems faced by the oil palm processing in dustry; 3 Constitution of Zo nal Committee 5. (d) co-ord inatio n betwee n the oil palm growers and industry and sorting out ofall matters which may an se; (e) to bring to the not ice of the Government any mea sures that will suit the orderly development of the oil palm cultivation and industry; (f) such other matters as may be presc ribed. ( I) The Oil Palm Officer may, by notification declare each area specified therein attached to a processing factory as a Zone (hereinafter refered to as 'Factory Zone') consti tute an Oil Palm Zonal Committee for each such Zone: Provided that the Oil Palm Officer may, with the approval ofthe Government, constitute one Zonal Commit tee for more than one factory zone or more than one Zonal Committee for each factory Zone, il' it is deemed necessary in the interests of effectively carrying out the purposes of this Act. (2) The Zonal Committee constituted under Sub-Section ( I) shall consist of the following I:lembers, namel y: (i) a Chairman nominated by the Oil Palm Officer, with the approval of the Government from among the persons residing in the factory zone. (ii ) two persons representing the factory located in the factory zone to he nominated hy the Managing Director of the factory concerned; (iii) four persons from among the growers to be nominated by the Oil Palm Officer; (iv) the Distric tAgriculture Officer and Sub-Division Agril. Officer of the area, DivisionalAgri l. Engin eer, Executive Engineer (Roads and Buildings), Executive Engineer (PHE) and Executive Engineer (P&E) representing the area; (v) the Oil Palm Inspector concerned who shall be the Member Secretary of the Committee; 4 Provided that the Members specified in clause (iv) shall have the right to speak and otherwise to take part in the meetings of the Zonal Committee but shall not be entitled to vote at any such meeting. ) (3) The Committee constituted under this section shall be a body corporate having perpetual succession and common seal with power to acquire, hold and dispose ofpropcrty and to enter into contracts and may by its corporate name sue and be sued. (4 ) The term ofthe Zonal Committee shall be three years and upon its expiry, the Committee shall be reconstituted in ac cordance with the provisions ofsub-section ( I) : Provided that if the Oil Palm Officer is satisfied that it is necessary so to do, he may with the approval ofthe Government, by order dissolve the Committee before the expi ry of its term: Provided further that the Oil Palm Offi cer shall not pass any such order unless the Committee has had an opportunity of making its representations. (5) When a Committee is dissolved, the following consequences shall follow : (a) all the members shall vacate their offices on the date specified in the order but without prejudice to thei r eligibility for renomination as members; (b) the Committee may be reconstituted within three months of its disolution by the Oi l Palm Officer in accordance with the Provi sions ofsub section (1); (c) the powers and function ofthe Committee shall , pend ing its reconstitution be exercised and performed by the Secretary subject to such restrictions as may be spec ified in the order. (6) The Oil Palm Officer hlay, with the approval ofthe Government, remove any member ofthe Committee, including the Chairman, from his office after record ing the reasons in writing for such removal : 5 Provided that the order removing a member shall not be passed by the Oil Palm Officer unless such member has had an op portunity ofmaking his representation. Powers and 6. functions of the Zonal Committee (I) The functions ofthe Zonal Committee shall be to : (a) consider the programme ofdevelopment ofOil Palm Cultivation in the factory Zone; (b) deliberate on the problems faced by the factory or the growers in cultivation and transport ofOil Palm; (c) devise plans for removal of such prob lems with the funds as may be available with the Committee and to recommend to the Government such action as is nee essary for solving the prob lems; (d) recommend to the local bodies, Public Works De partment ofthe Government for proper improvement and upkeep ofroads leading to the factory Zone from the cultivating centres including feeder roads; (e) take steps for prevention and control ofOil Palm diseases and pests affecting Oil Palm and render all possible help for the development ofOil Palm Cultivation; (f) draw up Plans for training ofthe cultivators and for extens ion work in respect ofOil Palm with the funds as may be available with the Committee; (g) consider complaints ofthe growers regarding transportation, purchase ofOil Palm FFB's and payment ofprice by the factory to the Oil Plam Cultivators; (h) administer the funds as may be available. Zonal Committee Funds 7. (2) The Government or the Oil Palm Officer may call a joint meeting ofthe Chairman and Members ofall the Zonal Committees for deliberating on the issues common to all the factory zones . ( I ) There shall be a fund at the disposal of the Zonal Committee for the performance ofthe various functions entrusted to it. 6 Appointment of Oil Palm Officer Oil Palm Inspector Register of . Oil Palm Growers' and Oil Palm Growers' Co Operative 8. 9. 10. (2) The funds of the Committee shall consist of: (a) grants made by the State Government either for a ge neral purpose or for any specific pur pose for the performance of the functions of the Committee; (b) such contributions as may be made by the factories,Oil Palm Grower', Oil Palm Growers' Cooperative Societies or such other organisations interested in the development of Oil Palm Cultivation and processing. Subject to snch rules as may be made in this behalf the Gov ernment shall appoint an Officer of the Government as Oil Palm Officer or may designate an Officer of the Government as Oil Palm Officer to exercise the powers and perform the functions of the Officer under this Act. (I) Subjects to such rules as may be made in this behalf; . the Government may appoint such number ofofficers of the Government as Oil Palm Inspectors for snch areas as may he specified under this Act to exercise the powers and perf01111 the fnnctions vested in the C?,i I Palm Inspectors under this Act. (2) Notwithstanding any thing contained in sub-section (I), the Government may designate any officer ofthc Department ofAgriculture to exercise the powers and perform the func tions of the Oil Palm Inspector under this Act. ( 1) The occupier ofthe factory in every factory zone shall maintain in such form and in such manner as may be prescribed a Register of Oil Palm Growers in the Zone attached to the factory in accordance with the provisions of section II. The Reg ister shall be updated every year and shall always be avai l able in the office of the factory for inspection by the Oil Palm Inspector or any other authority aut horised by the Government or Oi l Palm Officer. A copy of the list of Oil Palm growers and the Oil Palm Growers Cooperative Societies in the con cerned zone as in the Register shall also be made available by the said occupier to the Zonal Committee. It shall be compe tent for the Oil Palm Officer, on the report submitted by the inspecting authority, to order such corrections as he deems fit , in the registers main tained under this section. 7 Declaration 11. offactory Zone Failure to 12. buy (1) The Government shall have the power to declare by notification, any area as factory zone for the purpose ofsupply of fresh oil pa lm fruit bunc hes to the factory specified for the purpose or purchase ofOil Palm FFB and any other Oil Palm product by the factory. (2) Where a particular area is declared as Factory Zone under sub-section ( I) the Oil Pa lm growers in that area shall supply the fresh fruit bunches from the Oi l Palm plantations grown in that area on ly 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 concerned factory zone and for which the zone is declared, shall buy all the Oil Palm FFB produce d by all the Oil Pa lm growers or their Co-operative Soc i eties 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 em powered to fix the price under this Act. (I) In the event of failure on the part of the occupier of a fac tory to buy all the fres h fruit bunches from the growers in the fac tory zone declared in relation to a factory, without any va lid rea son, the occup ier of factory sha ll be liab le to compensate the loss that may have been caused to the grower on account of non-pur chase of the Oil Pa lm FFBs by the factory in addition to the pen alty specified in section 15. (2) Where an occupier of a factory refuses to buy particular consignment or consignment of Oil Pa lm FFBs from a growers, he shall assign reasons thereof in writing: Provided that damage, inefficient running, breakdown of plant mac hinery, failure to use capacities and any other operational problems shall not be valid reasons for refusal of the consignment ofOi l Pa lm FFBs and sha ll be treated as the failure on the part of the factory to buy the oi l palm FFBs for purposes of sub-section (I) : Provided further that the Oil Palm Officer shall be the au thority to dec ide whether there are valid reasons for the failure to buy oi l palm FFBs and his decision thereon shall be final. Power to fix prices 13. (I) The Government may on their own fix the min imum price ofoil palm FFBs or may authorise the Oil Palm Officer to do so, subject to such guidelines as they may give in that regard from time to time. 8 Maintenance 14. of Records and Inspection (2) Where the Oil Palm Conunissioner is authorised to fix the prices of oil palm FFBs to be purchased by the factory, he shall declare at such intervals as may be directed by the Govern ment the minimum price at which the oil palm FFBs be purchased by the factories. (1) Every occupier ofthe factory shall maintain such records as are prescribed or as required by the Oil Palm Officer with the approval ofthe Government. (2) An Oil Palm Inspector may at any time inspect a fa c tory and veri fy such records, reports, statements and regis ters as may be required to be maintained in connection with due implementation ofthe provisions ofthis Act and may also direct the occupier ofa factory to produce them for his verification. (3) The powers under sub-section (2) may be exercised by any officer authorised in this behalfby the Oil Palm Officer by a general or spec ific order. (4) An occupier of the factory who fails to maintain the records as requ ired by this section or fails or refuses to produce the same when called for by authority under this Act shall be punishable under sect ion 15. Penalties Institution of proceedings 15. 16. ( I) Every person or occupier ofa factory who contravenes the provisions ofsection II shall be punishable with fine which may extend to rupees ten thousand and in the case ofa continu ing contravention of the provisions of the said section with a further fine not exeeding rupees one thousand for each day dur ing which the contravention continues. (2) Any person or occupier ofa factory contravening any of the provisions ofthis Act or ofany rule or order made under this Act for which no penalty is provided in sub-section (1) shall be punishable with fine which may extend to rupees five thousand. (I) No court shall take cognizance ofan offence punishable under this Act, or any rule or order made there under except upon a complaint in writing made by the Oi I Palm Oflicer or any au thority or Officer authorised by him in this behalf. 9 Compounding 17. of offences Protection of 18. acts done in good faith Determination 19. ofoccupier of factory for the purposes of this Act. (2) No court inferior to the court of a Magistrate of the First Class shall take cognizance of, or try, an offence under those Act or any rule or order made thereunder. On the application ofa person accused ofan offence under this Act or any rule or order made thereunder, the Oil Palm Of ficer or any authority or officer authorised by him, in this behalf may, at any stage, compound such offence by levying a compound ing fee not exceeding rupees ten thousand. ( I) No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or in tended to be done in pursuance ofany provision ofthis Act or any rule or order made thereunder. (2) No suit or other legal proceedings shall lie against the Gov ernment for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of any provision of this Act or ofany rule or order made thereunder. (I) Where the occupier ofa oil palm factory is a firm or other association ofindividuals any onc or more ofthe partners or mem bers thereof may be prosecuted and punished under this Act for any offence for which the occupier ofthe factory or owner thereof is punishable. Provided that the firm or association may give no tice to the Oi l Pa lm Officer that it has nominated one of its part ners or members to be occupier ofthe factory for the purposes of this Act, and such individuals shall be deemed to be the occupier of factory for the purpose ofthis Act, until further notice cancel ling his nomination is received by the Oil Palm Officer or until he ceases to be a partner or member ofthe firm or association as the case maybe. (2) Where the occupier of a factory is a company or a Co operative Society, anyone or more ofthe Directors thereof, or, in the case ofa private company, anyone or more ofthe sharehold ers thereof, may be prosecuted and punished under this Act, for any offence for which the occupier of the factory is punishable: 10 Payment of 20. Oil Palm Price Provided that the company or co-operative soc iety may give notice to the Oil Palm Officer that it has nominated a Director, and a private company may give notice to the said officer that it has nominated a shareholder, to be the occupier of the factory for the purposes of this Act, and such Director or share holder shall be deemed to bc the occupier of the factory for the purposes ofthisAct, unti l further notice can celli ng his nomination is received by the Oi l Palm Officer or until he ceases to be a Director or shareholder, as the case may be. ( I) The occupier or owner ofa oil palm factory shall make suitable provision to the satisfaction of the Oi l Palm Officer for the payment of the price of oi l palm FFB supp lied to the factory. (2) Upon the delivery ofoil palm FFB, the occupier or owner ofa factory shall be liable to pay within fourteen days from the date ofsuch delivery the price ofthe oil palm FFB so supplied. (3) The price ofthe oil palm FFB remaining un-paid on the expiration ofthe period specified in sub -section (2) shall carry interest at fifteen per cent per annum from the date ofdelivery ofoil palm FFB and it shall beyecovered as ifit were an arrear ofland revenue. . . (4) If any occupier or owner ofa factory fails to pay the price of the oil pa lm FFB sold to him in accordance with the provision of sub-section (2) or the interest payable under the sub-section (3), he shall, in addition to the said price or the interest being recovered from him as an arrea r of land rev enue, be liable to the penalty provided for under clauset b) of sub-section (4) of section 3 ofthe Essential Commodities Act, 1955 (Central Act 10 of 1955) as if he has contravened a di rection issued under that clause. (5) Without prejudice to the provisions of the foregoing sub-sections, where. the owner or occup ier ofa factory or any other person competent in that behalf, enters into an agree ment with a bank under which the bank agrees to give advance to him on the security of palm oil produced or to be produced in the factory the said occupier, owner or other person, as the case may be, shall provide in such agreement that such per centage, which shall not be less than fifty percent of the total amount of advance, as may be prescribed, shall be set apart 11 Levy on Tax on purchase of oil pa lm on FFBs 21. and be available only for payment to oil palm growers or other co-operatives societies on account of the quantity of oil palm FFB purchased or to be purchased for the factory from those oil palm growers or from or through those societies and interest thereon and such societies commission in respect thereof. (6) Every such occupier, owner or other person as aforesaid shall send a copy of every such agree ment to the Oil Palm Of ficcr within a week from the date on which it is entered into. (1) Government may, by notification, levy a tax with a rate not exceeding Rs. one Hundred per M.T on the purchase ofFFBs required for lise, consumption or sale in a factory. (2) The Government may, bynotification, remit in whole or in part such tax in respect ofFFBs used orintended to be used in a factory for any purpose speci Iied in such notification. (3) The tax payab le under sub-section (I) shall be levied and collected from the occ upier of the factory or from the person receiving oil palm FFBs or the oil palm Processing Factory in such manner and by such authority as may be prescribed. Purposes for 22. which ta x levied and collected The tax on Oil Palm levied and collected under the section 21 shall be used for the following purposes namely: (i) for the overall development ofoil palm plantations; (ii) to bring more areas undcroil palm cultivation; (iii) to moni tor the schemes benefitting thc oil palm growers; (iv) to develop the feeder roads to facilitate movement ofoil palm FFBs; and (v) any other purpose in the interests ofOil Palm Growers in particular or in the interests of general public residing in Oil Palm Growing Zones. 12 Power of Government to give direction Delegation of powers of Government Power to make Rules Power to remove difficulties 23. 24. 25. The Government may, subject to other provisions 0 f th is Act, by order, direct the Oil Palm Officer ofany other Of ficcr to make an enquiry or to take appropriate proceed ing under this Act, in respect of any matter specified in this order, and the Oil Palm Officer or the other officer, as the case may be, shall report to the Government in due course, the result of the enquiry made or the proceeding taken by him. The Government may, by notificati on, delegate all or any of their powers under this Act, except sectio n 25 to any person or authority subordinate to them subject to such conditions and to such control and revision as may be specified in the notification; and they may in the like mann er withdraw any powers so delegated . ( 1) The Government may, by notification make rules for carrying out all or any of the purposes of this Act. (2 ) In particular and withoutprejudice to the generality of the foregoing power the Government may make rules : (a) as to the conditions governing the declaration ofa factory zone and as to the alteration or cancellation thereof; (b) as to the plucking, collection and delivery of the oil palm FFBs by the growers or as the case may be by the companies and the prescript ion of co llection centres by the Oil Palm Officer. (3) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made , before the Mizo ram Legislative Assembly Ifany difficu lty arises in giving effect to the provisions of this Act, the State Government may, by order not in inconsistent with the provisions ofthis Act, remove such difficulty. 13