The Andhra Pradesh Oil Palm (Regulation of Production and Processing) Act, 1993.
**THE ANDHRA PRADESH OIL PALM (REGULATION OF PRODUCTION AND**


**PROCESSING) ACT, 1993**


**ACT No. 3 OF 1993**


**ARRANGMENT OF SECTIONS**

**SECTIONS**

1. Short title, extent and commencement

2. Definitions

3. Constitution of the Advisory Committee

4. Functions of the Advisory Committee

5. Constitution of Zonal Committee

6. Powers and functions of the Zonal Committee

7. Zonal Committee Funds

8. Appointment of Oil Palm Commissioner

9. Oil Palm Inspector

10. Register of Oil Palm Growers’ and Oil Palm Growers' Co-operative
Societies

11. Declaration of factory Zone

11A. Market Intervention Scheme

12. Failure to buy

13. Power to fix prices

14. Maintenance of Records and Inspection

15. Penalties

16. Institution of Proceedings

17. Compounding of offences

18. Protection of acts done in good faith

19. Determination of occupier of factory for the purposes of this Act

20. Payment of Oil Palm Price

21. Levy of Tax on purchase of Oil Palm FFBs

22. Purposes for which tax levied and collected

23. Power of Government to give directions

24. Delegation of powers of Government

25. Power to make Rules


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**THE ANDHRA PRADESH OIL PALM (REGULATION OF PRODUCTION AND**
**PROCESSING) ACT, 1993**


**ACT No. 3 OF 1993**



[23[rd] January, 1993]


**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 Andhra Pradesh


in the Forty third Year of the Republic of India as follows:

**1. Short title, extent and commencement -(1) This Act may be called**
the Andhra Pradesh Oil Palm (Regulation of Production and Processing) Act,
1993.


(2) It extends to whole of the State of Andhra Pradesh.


(3) It shall come into force on such date as the State Government may, by


notification in the Ahdhra Pardesh Gazette appoint and they may appoint
different dates for different areas and for different provisions of this Act.


**2. Definitions -In this Act, unless the context otherwise requires,-**


(1) “Advisory Committee” means the Andhra Pradesh 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;


(5) “Occupier of the factory” means the person who, or the authority


which has the ultimate control over the affairs of the factory 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;


(6) “Oil Palm” means the palm of the genus, Elaeis and includes the


species, Elaeis guineensis and Elaeis, Malanococcea or Corozo oleifera and
hybrids of these species;


(7) “Oil Palm Commissioner” means the Oil Palm Commissioner


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 tenants and includes Oil Palm Growers' Co-operative Society, but not
a member thereof, and a Company as defined in Section 3 of the [1]Companies
Act, 1956 (Central Act 1 or 1956).

1 Now see the Central Act, 2013 ( Act 18 of 2013)


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(10) “Oil Palm Growers' Co-operative Society” means a Society registered


under the Andhra Pradesh Co-operative Societies Act, 1964, Act No. 7 of 1964
which has among its objects and functions the cultivation and sale of oil palm
FFB by its members, and includes the Federation of any such Societies;


(11) “Oil Palm Inspector” means the Oil Palm Inspector appointed under


Section 9;


(12) “Oil Palm Product” means any product obtained directly from the oil


palm and it includes palm oil, palm karnel, palm karnel cake, palm fatty acids,
oil palm seeds and oil palm seedlings;


(13) “Prescribed” means prescribed by rules made under this Act;


(14) “Zonal Committee” means a Zonal Committee Constituted under


Section 5.


**3. Constitution of the Advisory Committee -(1) 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 Andhra Pradesh Oil Palm Advisory
Committee” .


(2) The Committee shall consist of the following members, namely:

(a) the Minister in-charge of Horticulture who shall be the
Chairman;

(b) three members of the Legislative Assembly of the State to be
nominated by the Government;

(c) Secretaries to Government in-charge of Agriculture, Industries
and Finance;

(d) Heads of Departments of Agriculture, Horticulture and
Industries;


(e) the Vice-Chancellor of Andhra Pradesh Agricultural University.


(f) the Director, Regional Research Laboratory, Trivandrum;


(g) a representative of the Government of India, in the Ministers of
Agriculture;

(h) four representatives of the Oil Palm Processing Factories, a may
be nominated by the Government;

(i) four persons from among the Oil Palm Growers as may be
nominated by the Government:


(j) the Oil Palm Commissioner.


(3) The Oil Palm Commissioner shall be the Ex-Officio Member-Secretary


of the Committee.


(4) The term of Office of the Committee Shall be three years, but the


Government may, for reasons to be recorded in writing, reconstitute the
Committee at any time before the expiry of the term.

**4. Functions of the Advisory Committee - It shall be the duty of the**
Advisory Committee to advise the Government on the following matters
namely:

(a) extension of the areas under cultivation of oil palm;


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(b) problems relating to the cultivation of oil palm;


(c) problems faced by the oil palm processing industry;


(d) co-ordination between the oil palm growers and industry and
sorting out of all matters which may arise;

(e) to bring to the notice of the Government any measures that will
suit the orderly development of the oil palm cultivation and
industry;


(f) such other matters as may be prescribed.


**5. Constitution of Zonal Committee - (1) The Oil Palm Commissioner may, by**
notification declare each area specified therein attached to a processing factory
as a Zone (hereinafter referred to as ‘Factory Zone’) constitute an Oil Palm
Zonal Committee for each such Zone:


Provided that the Oil Palm Commissioner may, with the approval of the


Government, constitute one Zonal Committee for more than one factory Zone
or more than one Zonal Committee for each factory Zone, if it is deemed
necessary in the interests of effectively carrying out the purposes of this Act.


(2) The Zonal Committee constituted under sub-section (1) shall consist


of the following members, namely:

(i) a Chairman nominated by the Oil Palm Commissioner,
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
one to be nominated by the Managing Director of the factory
concerned;

(iii) four persons from among the growers to be nominated by
the Oil Palm Commissioner;

(iv) the Joint Director (Agriculture) and Assistant Director
(Horticulture) of the area, Executive Engineer (Panchayati
Raj) and Executive Engineer (Roads and Buildings)

representing the area and the Executive Engineer (Public
Health);

(v) a representative of the Andhra Pradesh Agricultural
University to be nominated by its Vice-Chancellor;

(vi) the Oil Palm Inspector concerned who shall be the
Member-Secretary of the Committee:


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 coacquire, hold and dispose of property and to enter into contracts and may by
its corporate name sue and be sued.


(4) the term of the Zonal Committee shall be three years and upon its


expiry, the Committee shall be reconstituted in accordance with the provisions
of sub-section (1):


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Provided that if the Oil Palm Commissioner is satisfied that it is


necessary so to do, he may with the approval of the Government, by order
dissolve the committee before the expiry of its term.


Provided further that the Oil Palm Commissioner 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 hall


fallow:


(a) all the members shall vacate their offices on the date specifie in
the order but without prejudice to their eligibility for renomination
as members;

(b) the committee may be reconstituted within three months of its
dissolution by the Oil Palm Commissioner in accordance with the
provisions of sub-section (1);

(c) the powers and functions of the Committee shall, pending its
reconstitution be exercised and performed by the Secretary subject
to such restrictions as may be specified in the order.


(6) The Oil Palm Commissioner may, with the approval of the


Government, remove any member of the Committee, including the Chairman,
from his office after recording the reasons in writing for such removal:


Provided that the order removing a member shall not be passed by the


Oil Palm Commissioner unless such member has had an opportunity of
making his representation.

**6. Powers and functions of the Zonal Committee -(1) The functions of the**
Zonal Committee shall be to,
(a) consider the programme of development of Oil Palm cultivation
on the factory Zone;

(b) deliberate on the problems faced by the factory or the growers
in cultivation and transport of Oil Palm;

(c) devise plans for removal of such problems with the funds as
may be available with the Committee and to recommend to the
Government such action as is necessary for solving the problems;

(d) recommend to the local bodies, Public-Works Department and
Roads and Buildings Departments of the Government for proper
improvement and upkeep of roads leading to the factory Zone from
the cultivating centers including feeder roads;

(e) take steps for prevention and control of Oil Palm diseases and
pests affecting Oil Palm and render all possible help for the
development of Oil Palm cultivation;

(f) draw up Plans for training of the cultivators and for extension
work in respect of Oil Palm with the funds as may be available with
the committee;

(g) consider complaints of the growers regarding transportation
purchase of Oil Palm FFBs and payment of price by the factory to
the Oil Palm cultivators;


(h) administer the funds as may be available.


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(2) The Government or the Oil Palm Commissioner may call a joint


meeting of the Chairman and Members of all the Zonal Committees for
deliberating on the issues common to all the factory zones.

**7. Zonal Committee Funds -(1) There shall, be a fund at the disposal of the**
Zonal Committee for the performance of the various functions entrusted to it.


(2) The funds of the Committee shall consist of,-

(a) grants made by the State Government either for a general
purpose or for any specific purpose for the performance of the
functions of the Committee;

(b) such contributions as may be made by the factories, Oil Palm
growers, Oil Palm Growers' Co-operative Societies or such other
organisations interested in the development of Oil Palm cultivation
and processing.

**8. Appointment of Oil Palm Commissioner - Subject to such rules as may be**
made in this behalf of the Government shall appoint an Officer as Oil Palm
Commissioner, or may designate an Officer of the Government as Oil Palm
Commissioner to exercise the powers and perform the functions of the
Commissioner under this Act.

**9. Oil Palm Inspector -(1) Subject to such rules as may be made in this**
behalf, the Government may appoint such number of officers of the
Government as Oil Palm Inspectors for such areas as may be specified under
this Act to exercise the powers and perform the functions vested in the Oil
Palm Inspectors under this Act.


(2) Notwithstanding anything contained in sub-section (1), the


Government may designated any officer of the Department of Horticulture to
exercise the powers and perform the functions of the Oil Palm Inspector under
this Act.

**10. Register of Oil Palm Growers’ and Oil Palm Growers' Co-operative**
**Societies - The occupier of the 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 11. The Register shall be updated every year and shall always be
available in the office of the factory for inspection by the Oil Palm Inspector or
any other authority authorised by the Government or Oil Palm Commissioner.
A copy of the, list of Oil Palm Growers' and the Oil Palm Growers' Co-operative
Societies in the concerned Zone as in the Register shall also be made available
by the said occupier to the Zonal Committee. It shall be competent for the Oil
Palm Commissioner, on the report submitted by the inspecting authority, to
order such corrections as he deems fit in the registers maintained under this
section.

**11. 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
fresh Oil Palm fruit bunches to the factory specified for, the purpose or
purchase of Oil Palm FFB and any other Oil Palm product by the factory.


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(2) Where a particular area is declared as Factory Zone under sub

section (1) the Oil Palm growers in that area shall supply the fresh fruit
bunches from Oil Palm 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 concerned factory zone and for which the zone is
declared, shall buy all the Oil Palm FFB produced by all the Oil Palm 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.

2[11A. Market Intervention Scheme – (1) Notwithstanding anything contained
in section 11, where the Government notifies any Market Intervention Scheme
approved by the Government of India for any specified period for all the factory
zones in the State, and designates an agency or agencies for the purpose, such
designated agency may buy specified quantities of Oil Palm F.F.Bs produced by
the Oil Palm growers or their co-operative societies in all the zones as are
offered for sale by them at a price fixed by the Government under the Market
Intervention Scheme.

(2) The designated agency may supply the said Oil palm F.F.Bs to the occupiers
of the factories in the concerned factory zones and the occupier of the factory
shall buy all the Oil Palm F.F.Bs so supplied by the designated agency, which
shall be deemed to be an Oil Palm growers in the factory zone under the
provisions of this Act, in relation to such supply and buying.]

**12. Failure to buy -(1) In the event of failure on the part of the occupier of a**
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
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 specific section 15.


(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 or
purposes of sub-section (1):


Provided further that the Oil Palm Commissioner shall be the authority


to beside whether there are valid reasons for the failure to buy Oil Palm FFBs
and his decision thereon shall be final.

**13. Power to fix prices -(1) The Government may on there own fix the**
minimum price of Oil Palm FFBs or may authorize the Oil Palm Commissioner
to do so, subject to such guide lines as they may give in that regard from time
to time.

2 . The section 11A inserted by the Act No. 21 of 2000, section 2.


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(2) Where the Oil Palm Commissioner is authorised to fix the prices of Oil


Palm FFBs to be purchased by the factory, he shall declare to such intervals as
may be directed by the Government the minimum price at which the Oil Palm
FFBs be purchased by the factories.

**14. Maintenance of Records and Inspection - (1) Every occupier of the**
factory shall maintain such records as are prescribed or as required by the Oil
Palm Commissioner with the approval of the Government.


(2) An Oil Palm Inspector may at any time inspect a factory and verify


such records, reports, statement’s and registers as may be required to be
maintained in connection with due implantation of the provision of this Act and
may also direct the occupier of a factory to produce them for his verification.


(3) The powers under sub-section (2) may be exercised by any officer


authorised in this behalf by the Oil Palm Commissioner by a general or specific
order.


(4) An occupier of the factory who fails to maintain the records as


required by this section or fails or refuse to produce the same when called for
by an authority under this Act shall be punishable under section 15.

**15. Penalities -(1) Every person or occupier of a factory who contravenes the**
provisions of section 11 shall be punishable with fine which may extend to
rupees ten thousand and in the case of a continuing contravention of the
provisions of the said section with a further fine not exceeding rupees one
thousand for each day during which the contravention continues.


(2) Any person of occupier of a factory contravening any of the provisions


of this Act or of any 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.

**16. Institution of Proceedings -(1) No court shall take cognizance of an**
offence punishable under this Act, or any rule or order made there under
except upon a complaint in writing made by the Oil Palm Commissioner or any
authority or officer authorised by him in this behalf.


(2) No court inferior to the court of a Magistrate of the First Class shall


take cognizance of, or try, an offence under this Act or any rule or order made
thereunder.

**17. Compounding of offences -On the application of a person accused of an**
offences under this Act or any rule or order made thereunder, the Oil Palm
Commissioner or any authority or Officer authorised by him in this behalf may,
at any stage, compound such offence by levying a compounding fee not
exceeding rupees ten thousand.

**18. Protection of acts done in good faith -(1) No suit, prosecution or other**
legal proceeding shall lie against any person for anything which is in good faith
done or intended to be done in pursuance of any provision of this Act or any
rule or order made thereunder.


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(2) No suit or other legal proceedings shall lie against the Government 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 of any
rule or order made thereunder.

**19. Determination of occupier of factory for the purposes of this Act -(1)**
Where the occupier of a Oil Palm factory is a firm or others association of
individuals any one or more of the partners or members there of may be
prosecuted and punished under this Act for any offence for which the occupier
of the factory or owner thereof is punishable:


Provided that the firm or association may give notice to the Oil Palm


Commissioner that it has nominated one of its partners or members to be
occupier of the factory for the purposes of this Act, and such individuals shall
be deemed to be the occupier of factory for the purpose of this Act, until further
notice cancelling his nomination is received by the Oil Palm commissioner or
until he ceases to be a partner or member of the firm or association as the case
may be.


(2) Where the occupier of a factory is a company or a Co-operative


Society, any one or more of the Directors thereof, or, in the case of a private
company, any one or more of the shareholders thereof, may be prosecuted and
punished under this Act, for any offence for which the occupier of the factory is
punishable:


Provided that the company or co-operative society may give notice to the


Oil Palm Commissioner 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 be the occupier of the factory
for the purposes of this Act, until further notice cancelling his nomination is
received by the Oil Palm Commissioner or until he ceases to be a Director of
shareholder, as the case may be.

**20. Payment of Oil Palm Price - The occupier or owner of a Oil Palm factory**
shall make suitable provision to the satisfaction of the Oil Palm Commissioner
for the payment of the price of Oil Palm FFB supplied to the factory.


(2) Upon the delivery of Oil Palm FFB the occupier or owner of a


factory shall be liable to pay within fourteen days from the date of such delivery
the price of the Oil Palm FFB so supplied.


(3) The price of the Oil Palm FFB remaining un-paid on the expiration of


the period specified in sub-section (2) shall carry interest at fifteen per cent per
annum from the date of delivery of Oil Palm FFB and it shall be recovered as if
it were an arrear of land revenue.


(4) If any occupier or owner of a factory fails to pay the price of the Oil


Palm 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 arrear of land revenue, be
liable to the penalty provided for under clause (b) of sub-section (4) of section 3


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of the Essential Commodities Act, 1955 Central Act 10 of 1955. As if has
contravened a direction issued under that clause.


(5) Without prejudice to the provisions of the foregoing sub-sections


where the owner or occupier of a factory or any other person competent in that
behalf, enters into an agreement 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 percentage, which shall not be less than
fifty percent of the total amount of advance as may be prescribed, shall be set
apart and be available only for payment to Oil Palm growers or other cooperative societies on account of the quantity of Oil Palm FFB purchased or to
be purchased for the factory from those Oil Palm growers of from or through
those societies and interest there on and such societies commission in respect
thereof.


(6) Every such occupier, owner or other person as aforesaid shall send a


copy of every such agreement to the Oil Palm Commissioner within a week from
the date on which it is entered into.

**21. Levy of Tax on purchase of Oil Palm FFBs -(1) Government, may by**
notification, levy a tax with a rate not exceeding Rupees One Hundred per M.T.
on the purchase of FFBs required for use, consumption or sale in a factory.


(2) The Government may, by notification, remit in whole or in part such


tax in respect of FFBs used or in intend to be used in a factory or any purpose
specified in such notification.


(3) The lax payable under sub-section (1) shall be levied and collected


from the occupier 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.

**22. Purposes for which tax 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 of oil palm plantation;


(ii) to bring more areas under oil palm cultivation;


(iii) to monitor the schemes benefitting the oil palm growers;


(iv) to develop the feeder roads to facilitate movement of oil palm
FFBs; and

(v) any other purpose in the interests of Oil Palm Growers in the
particular or in the interests of general public residing in Oil Palm
Growing Zones.

**23. Power of Government to give directions -The Government may subject**
to other provisions of this Act, by order, direct the Oil Palm Commissioner or
any other Officer to make an enquiry or to take appropriate proceeding under
this Act, in respect of any matter specified in this order, and the Oil Palm
Commissioner 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.


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**24. Delegation of powers of Government -The Government may, by**
notification, delegate all or any of their powers under this Act, except section
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 manner withdraw any powers so delegated.

**25. Power to make Rules -(1) The Government may, by notification make**
rules for carrying out all or any of the purposes of this Act.


(2) In particular and without prejudice to the generality of the foregoing


power the Government may make rules;


(a) as to the conditions governing the declaration of a 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
prescription of collection centres by the Oil Palm Commissioner.


(3) Every rule made under this Act shall immediate after it is made, be


laid before the Legislative Assembly of the State if it is in session and if it is not
in session immediately following for a total period of fourteen days which may
be comprised in one session, or in two successive sessions and if, before the
expiration of the session in which it is so laid or the session immediately
following the Legislative Assembly agrees in making any modification in the
rule or in the annulment of the rule, the rule shall, from the date on which
modification or annulment is notified, have effect only in such modified form or
shall stand annulled, as the case may be, so however, that any such
modification or annulment shall be without prejudice to the validity of any
thing previously done under that rule.


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