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CEREALS AND OTHER PRODUCE ACT
[PRINCIPAL LEGISLATION]
ARRANGEMENT OF SECTIONS
Section
Title
PART I
PRELIMINARY PROVISIONS
1. Short title and commencement.
2. Application.
3. Interpretation.
PART II
THE CEREALS AND OTHER PRODUCE BOARD
4. Establishment of the Board.
5. Composition of the Board.
6. Functions of the Board.
7. Commercial functions.
8. Powers of the Board.
9. Establishment of the Committees.
10. Delegation of functions of the Board.
11. Disciplinary functions of the Board.
12. Appointment of Director General.
13. Appointment of senior officers and other staff.
14. Appointment of agents and contractors.
PART III
ZONAL COUNCILS OF CEREALS AND OTHER PRODUCE
15. Establishment of Zonal Councils.
16. Procedures and meetings of the Councils.
PART IV
FINANCIAL PROVISIONS
17. Funds and resources of the Board.
18. Books of Accounts and Audit.
19. Annual Reports.
20. Remunerations of Members.
PART V
GENERAL PROVISIONS
21. Direction of the Minister.
22. Offences and penalties.
23. Offence by Body Corporate.
24. Offence by Agents.
25. General offences and penalty.
26. Powers to make Regulations.
27. Power to make Rules.
28A. Powers to make by-laws.
SCHEDULE
PART VI
CONSEQUENTIAL AMENDMENT TO THE FOOD SECURITY ACT
28. Construction.
SCHEDULE
CHAPTER
CEREALS AND OTHER PRODUCE ACT
An Act to make provisions for the establishment of the Cereals and Other Produce Board, for promotion and development of cereals and other agricultural produce and to provide for other related matters.
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[G.N. No. ????]
Act No. 19 of 2009
PART I
PRELIMINARY PROVISIONS (ss 1-3)
1. Short title and commencement
This Act may be cited as the Cereals and Other Produce Act, 2009 and shall come into operation on such date as the Minister may, by notice published in the Gazette, appoint.
This Act shall apply in Mainland Tanzania.
(1) In this Act, unless the context otherwise requires–
"Board" means the Cereals and other Produce Board of Tanzania established under section 4 of this Act;
"cereals" means edible grains such as maize, oat, wheat, rice, millet and sorghum;
"contract farming" means farming under an agreement between growers, farmers or producers on one part and financiers such as buyers, sellers, processors or bankers on the other part;
"Council" means zonal stakeholders forums for cereals and other produce as established under section 15 of this Act;
"crop" means the produce what is planted or a part of plant which is harvested after cropping, cut, or gathered from a plant or agricultural field, or of a single kind of grain, legume or fruit gathered in a single season;
"Director General" means Chief Executive Officer of the Board appointed under this Act;
"input" includes planting material, agrochemical, fertilizer, farm implements and packaging material;
"Inspector" means an officer authorized by the Board or Local Government Authority to act as an inspector in accordance with the provisions of this Act;
"member" means a member of the Board and includes a Chairman;
"Minister" means the Minister responsible for agriculture;
"Ministry" means the Ministry responsible for agriculture;
"natural agricultural resource" includes agricultural land, water and natural vegetation;
"other produce" means agricultural produce as may be gazetted by the Minister under this Act;
"premise" means land, building, factory, erection, vehicle, article, or receptacle whatsoever used for the purpose of growing, sorting, processing, storage, transporting or for any other activity connected to the handling of cereals or other agricultural produce;
"processing" with its grammatical variations and cognate expression means any act or thing done to cereals or other produce for the purpose of adding its value and the word "processor" shall be construed accordingly;
"Senior Officer" means an officer who is the head of a Unit, Section or Department;
"shared functions" means functions to be undertaken by all stakeholders as agreed from time to time and may include research, provision of extension services, inputs supply, crop promotion and development, promotion of fair trade and competition, setting indicative prices, collecting, refining, maintaining and disseminating data and information relating to the specific crop industry, improving technologies and delivery system;
"stakeholders’ meetings" means meetings of the Cereal and other produce Council provided for under this Act;
"stakeholder" means a dealer in the specified crop industry such as the central Government, local government authorities, cooperative societies, the Board, research and training institutes, traders and input suppliers, producers and other private sectors in cereals and other produce.
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PART II
THE CEREALS AND OTHER PRODUCE BOARD (ss 4-14)
(1) There is established a Board to be known as the Cereals and other Produce Board of Tanzania.
(2) The Board established under subsection (1) shall be a body corporate and shall–
(a) have perpetual succession and a common seal;
(b) in its corporate name be capable of suing and being sued;
(c) be capable of purchasing or acquiring in any manner and alienating any movable and immovable property;
(d) be capable of entering into any contract or agreement as may be necessary or expedient for the proper performance of its functions under the provisions of this Act; and
(e) do all such other acts and perform such functions which a body corporate may lawfully perform.
(1) The Board shall consist of the Chairman to be appointed by the President and twelve other members to be appointed by the Minister as follows:
(a) a member representing northern agricultural zone;
(b) a member representing southern agricultural zone;
(c) a member representing eastern agricultural zone;
(d) a member representing western agricultural zone;
(e) a member representing lake agricultural zone;
(f) a member representing central agricultural zone;
(g) a member representing southern highlands agricultural zone;
(h) one person representing the Ministry;
(i) one person representing the Ministry responsible for marketing of agricultural produce;
(j) one person representing the Ministry responsible for local government; and
(k) two persons who possess adequate knowledge and experience in cereal and other produce.
(2) The Minister shall, in appointing members of the Board, ensure that appointment is made from among three names of candidates recommended by Cereals and Other produce Zonal Councils.
(3) The provisions of the Schedule to this Act shall have effect as to the tenure of office of members, cessation of membership, proceedings of the Board and other matters relating to the Board.
(4) The Minister may, by notice published in the Gazette amend, vary or replace any of the provisions of the Schedule.
(1) The main functions of the Board shall be to carry out commercial activities and such other activities as are necessary, advantageous or proper for the development of the cereals and other produce industry.
(2) The Board may provide facilitation of–
(a) agricultural research on cereals and other produce;
(b) extension services to growers and other dealers of cereals and other produce;
(c) input services, including fertilizers and agrochemicals;
(d) promotion of production, marketing, processing and storage of cereals and other produce;
(e) the dissemination of information or data relating to cereals and other produce;
(f) the promotion of technological advancement in cereals and other produce; and
(g) the provision of assistance in the formation of farmers Co-operatives or Organisations.
(1) The Board shall, subject to the provisions of this Act and any other written law, perform any commercial function or hold interest in any undertaking or project associated with cereals and other produce under this Act.
(2) The commercial functions referred to under subsection (1) shall include to–
(a) purchase and sell cereals and other produce at a competitive price;
(b) import or export cereals and other produce;
(c) process cereals and other produce;
(d) provide warehousing services for cereals and other produce;
(e) provide grain and other produce, cleaning, drying, weighing, grading and packaging services according to market standards; and
(f) perform any other commercial functions approved by the Minister for the development of trade in cereals and other produce.
(1) The Board shall, in the performance of its functions under this Act, have powers to–
(a) build or otherwise acquire buildings or storage structures, warehouses and processing machinery;
(b) establish cereals and other produce market centres, show rooms and exchange centres;
(c) provide training on matters relating to cereals and other produce; and
(d) perform such other functions which advance the objective of this Act.
(2) It shall be the duty of the Board in the exercise of its powers and in the performance of its functions under this Act, to act in such a manner as it appears to it appropriate for the purpose of promoting the quality and competitiveness of the cereals and other produce industry within and outside Tanzania.
9. Establishment of the Committees
The Board may, for the purpose of facilitating performance of its functions establish such number of Committees as may be necessary for effective performance of the specific functions as the Board may determine.
10. Delegation of functions of the Board
(1) The Board may, subject to the terms, conditions and restrictions as it may specify, delegate to any Committee or the Director General or any other employee of the Board some of the functions and exercise of power conferred on it under this Act.
(2) Delegation made under subsection (1) shall not prevent the Board from performing the same functions or exercising the powers delegated.
(3) Notwithstanding the powers conferred on the Board to delegate its functions, the Board shall not delegate its commercial functions or disciplinary functions.
11. Disciplinary functions of the Board
(1) The Board shall be–
(a) the disciplinary authority over the Director General and senior employees of the Board; and
(b) the appellate disciplinary authority for other employees of the Board.
(2) The Minister may make general or specific regulations prescribing procedures for disciplinary measures against the management or any employee of the Board.
12. Appointment of Director General
(1) The Minister shall, upon recommendations of the Board, appoint on such terms and conditions a Director General who shall be the Chief Executive Officer of the Board.
(2) The Director General shall hold office for a period of five years and shall, subject to his satisfactory performance, be eligible for re-appointment for a further period of five years only.
13. Appointment of senior officers and other staff
(1) The Board may appoint such number of senior officers to the management of the Board.
(2) The Director General shall employ such numbers of other staff to perform the functions of the Board on such terms and conditions of employment.
(3) The Board may, for facilitating performance of functions under this Act, establish such number of departments, units and sections to be headed by directors and other staff appointed under subsection (1).
14. Appointment of agents and contractors
(1) The Board may appoint and employ, upon such terms and conditions, such number of agents and contractors as it may deem necessary for the better carrying out of its functions as stipulated in this Act.
(2) Terms and conditions for appointment and employment shall be contained in a written contract or agreement entered between the Board and the agent or contractor.
PART III
ZONAL COUNCILS OF CEREALS AND OTHER PRODUCE (ss 15-16)
15. Establishment of Zonal Councils
(1) There is established a Cereals and Other Produce Zonal Council in each agricultural zone.
(2) The zones in which Councils are established shall be–
(a) Lake zone - comprising Mara, Mwanza, Kagera and Shinyanga regions;
(b) Central zone - comprising Dodoma and Singida regions;
(c) Northern zone - comprising Arusha, Manyara, Kilimanjaro and Tanga regions;
(d) Southern zone - comprising Mtwara and Lindi regions;
(e) Eastern zone - comprising Dar es Salaam, Coast and Morogoro regions.
(f) Western zone - comprising Tabora and Kigoma regions; and
(g) Southern highland - comprising Ruvuma, Mbeya, Iringa and Rukwa regions.
(3) The functions of Zonal Council shall be to–
(a) promote cereal and other produce including formation of farmers associations and other bodies in their respective areas;
(b) act as a consultative forum for cereals and other produce on price negotiations between farmers and buyers or traders of the cereals and other produce;
(c) establish and operate a market information system for cereals, other produces and agricultural inputs in their respective areas;
(d) promote the use of weights, measures and grading standards for cereals and other produce;
(e) collaborate with the Board and local government authorities in provisions of agricultural educations in respect to the cereals and other produces in their areas of jurisdiction;
(f) perform such other functions as the Council deems necessary for the development of the cereal and other produce industry; and
(g) prepare and promote zonal production targets.
(4) The qualification, tenure of office and disciplinary procedure for the members of the Council shall be prescribed in the Regulations.
16. Procedures and meetings of the Councils
(1) Subject to the provisions of this Act, the Council shall have power to regulate its own procedures in respect of the proper conduct of its business.
(2) The Council shall, from time to time, agree on–
(a) time and place for holding annual stakeholder’s meetings, and other matters of mutual interest;
(b) mechanisms for the management and funding of the shared functions; and
(c) organisational structure for the management of its affairs.
PART IV
FINANCIAL PROVISIONS (ss 17-20)
17. Funds and resources of the Board
The funds and resources of the Board shall consist of–
(a) such sums of money as may be appropriated by Parliament;
(b) any money raised by way of loans, donations or grants from, within and outside Tanzania;
(c) any loan or subsidy granted to the Board by the Government or any other person;
(d) any money derived from commercial activities; and
(e) such sums of money or property which may become payable to or vested in the Board under this Act or any other written law or in respect of any matter incidental to the carrying out of its functions.
18. Books of Accounts and Audit
(1) The Board shall cause to be kept and maintained proper books of accounts with respect to–
(a) sums of money received and expended by the Board and matters in respect of which the receipt and expenditure took place;
(b) the assets and liabilities of the Board; and
(c) the income and expenditure statement of the Board;
(2) The auditing of the financial reports and books of accounts of the Board shall be done by the Controller and Auditor General or a person authorized by him.
(1) The Board shall, not later than six months after the end of financial year, submit to the Minister a copy of the audited accounts and annual report on the activities of the Board in respect of that year.
(2) The Minister shall, within a period of six months after the accounts have been audited, lay the audited accounts and audit report before the National Assembly.
(3) For the purpose of this section, "financial year" of the Board shall be a period not exceeding twelve consecutive months which conform with the financial year of the Government.
The Chairman and other members of the Board shall be entitled to allowances and fees at the rates as the Minister may in consultation with the minister responsible for finance approve from time to time.
PART V
GENERAL PROVISIONS (ss 21-28A)
(1) The Minister may give to the Board directions of a general or specific nature in writing as to the exercise or performance of its functions and the Board shall give effect to such direction.
(2) Where the Board fails to perform any of its functions or to give effect to a direction given by the Minister without a reasonable cause, the Minister may exercise disciplinary power as may be appropriate.
Any person who–
(a) buys cereals or other produce in the name of the Board without its authority;
(b) discloses confidential information of the Board; and
(c) obstructs or prevents any officer of the Board from exercising his powers under this Act,
commits an offence and is liable on conviction to a fine of not less than five million shillings or to imprisonment for term of not less than six months but not more than two years or both.
(1) Where any offence under this Act or subsidiary legislation made under this Act is committed by a body corporate, any person who, at the time of the commission of the offence was concerned, as a director or an officer, with the management of the affairs of the body corporate, commits an offence and is liable to be proceeded against and punished accordingly unless he proves to the satisfaction of the court that he had no knowledge and could not by the exercise of reasonable diligence have had knowledge of the commission of the offence.
(2) Where an offence under this Act is committed by a body corporate, that body corporate shall be liable on conviction to a fine of not less than ten million shillings.
Where an offence under this Act or any subsidiary legislation made under this Act it is committed by a person as an agent or employee then, such agent or employee, the principal or employer commits an offence and is liable to be proceeded against and punished accordingly unless he proves to the satisfaction of the court that he had no knowledge and could not by the exercise of reasonable diligence have had knowledge of the commission of the offence.
25. General offences and penalty
Any person who commits an offence under this Act to which no specific penalty is provided shall on conviction be liable to a fine of not less than five million shilling or to imprisonment for a term of not less than one year but not exceeding three year or to both.
26. Powers to make Regulations
The Minister may make Regulations for better carrying out the provisions of this Act.
The Board shall, with the approval of the Minister, make rules for better farming, grading and trading for each category of crops.
A local government authority may, on consultation with the Minister, make by-laws for better carrying out of the shared functions agreed upon with stakeholders.
SCHEDULE
(Section 5(3))
PROVISIONS RELATING TO THE BOARD
1. Tenure of office of members
A member of the Board shall hold office for a term of three years from the date of appointment and may be eligible for re-appointment for a further term of three years.
2. Resignation
(1) Notwithstanding paragraph 1, any member of the Board may at any time resign from the Board by giving notice in writing to the Minister and from the date specified in the notice or, if no date is so specified, from the date of receipt of the notice by the Minister, he shall cease to be a member.
(2) Where a person ceases to be a Board member for any reason before the expiration of his term of office, the Minister shall appoint another person in his place and the person so appointed shall hold office for the remainder of the term of office of his predecessor.
3. Number of meetings
The Board shall meet four times a year for ordinary business and may convene extra ordinary meetings as may be deemed necessary for discharging of its functions under the Act.
4. Vice-Chairman
The Board shall appoint one of their members to be a Vice-Chairman.
5. Proceedings of the meetings
(1) All meetings of the Board shall be convened by the Chairman or in the absence by the Vice-Chairman and in the absence of both the Chairman and the Vice-Chairman from the meeting, the members present shall elect one of their members to be an interim chairman of that meeting.
(2) The Chairman, or in the absence, the Vice Chairman, shall convene a special meeting of the Board upon a request in writing signed by not less than four members of Board and shall cause such a meeting to be held within twenty one days of receiving such request.
6. Co-opted members
The Board may co-opt any person to attend any deliberations of the meeting of the Board as an expert but such person so co-opted shall not have the right to vote.
7. Decision of the Board
(1) The Board shall make its decision by voting during the meeting and in case of any equality in the votes the Chairman or any other person presiding at meeting shall have a casting vote.
(2) Notwithstanding subparagraph (1) decisions may be made by the Board by circulation of papers to the members whereby each member shall express his views in writing provided that any member may require that any such decision be deferred for discussion at a full meeting of the Board of Directors.
(3) A circular resolution in writing signed by all the Members for the time being in Tanzania shall be as effectual as a decision made at a meeting provided that a member may require that notwithstanding the directors’ signature the matter be brought at the following Board.
8. Quorum
(1) Half of the members of the Board shall constitute a quorum at any meeting and all acts, matters and things to be done by the Board shall be decided by a simple majority of the members present at the meeting.
9. Vacancies
Subject to the provision of this Schedule relating to quorum, the Board may act notwithstanding any vacancy in the members thereof and no act or proceedings of the Board shall be invalid by reason only of some defect in the appointment of a person who purports to be a member thereof.
10. A member to declare interest
A member who is in any way directly or indirectly interested in a contract or proposed contract or any matter being deliberated by the Board shall declare the nature of his interest to the other directors.
11. Minutes
Minutes in proper form of each meeting of the Board shall be kept and shall be confirmed by the Board at its next meeting and signed by the Chairman of the meeting.
12. Seal of the Board
There shall be a common seal of the Board which shall be of such shape, size and form as the Board may determine.
(2) The Seal of the Board shall not be affixed to any deed, instrument, contracts or agreement to which the Board is a party except in the presence of the Chief Executive Officer or a person authorised by him.
13. Power to regulate its procedures
Subject to the provisions of this Act, the Board shall have power to regulate its own procedures in respect of the meetings and the proper conduct of its business."
PART VI
CONSEQUENTIAL AMENDMENTS TO THE FOOD SECURITY ACT (s 28)
[Amends the Food Security Act]
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