Section 29
Power to enter into agreement for purchase of foodgrains after harvest.
The Food Corporations Act, 1964
About this Act
An Act to provide for the establishment of Food Corporations for the purpose of trading in foodgrains and other foodstuffs and for matters connected therewith and incidental thereto.
(1) A Food
Corporation may enter into agreement with any grower of foodcrops for the purchase of foodgrains after
the harvest of such crops and any such agreement may provide that any sum payable by the Corporation
to the grower under such agreement shall be payable to any scheduled bank or other financing agency
nominated by the grower in this behalf to such extent as may be specified in the agreement.
(2) The scheduled bank or other financing agency referred to in sub-section (1) may, on the basis of any agreement referred to in that sub-section, lend money to a grower of food crops who has entered into such agreement.
(2) The scheduled bank or other financing agency referred to in sub-section (1) may, on the basis of any agreement referred to in that sub-section, lend money to a grower of food crops who has entered into such agreement.