PARTlPRELIMINARY PROVISIONS

1. Short title and Commencement.2. Application.3. Interpretation.

PART IITHE 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 IIIZONAL COUNCILS OF CEREALS AND OTHER PRODUCE

15. Establishment of Zonal Councils.16. Procedures and meetings of the Councils.

PARTlYFINANCIAL PROVISIONS

17. Funds and resources of the Board.18 Books of Accounts and Audit.19. Annual Reports.20. Remunerations of Members.

PART VGENERAL 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.28.A Powers to make by-laws.

PART VICONSEQUENTIAL AMENDMENT TO THE FOOD

SECURITY ACT

An Act to make provisions for the establishment of the Cerealsand Other Produce Board, for promotion and developmentof cereals and other agricultural produce and to provide forother related matters.

PART IPRELIMINARY PROVISIONS

Short titleandcommence-ment

1. This Act may be cited as the Cereals and Other Produce Act,2009 and shall come into operation on such date as the Ministermay, by notice published in the Gazette, appoint.

Interpreta-tion

3.-(1) In this Act, unless the context otherwise requires-

"Board" means the Cereals and other Produce Board of Tanzaniaestablished under section 4 of this Act;

"cerea" ns edible grains such as maize, oat, wheat, rice, milletand'sor~

"contract farrniRg~// ans farming under an agreement betweengrowers, farm~9r producers on one part and fmanciers such

, aibuyers,~l1ers, - cessors or bankers on the other part;"CoUnG,i~ean..s zona~takeholders forums for cereals and other

~ -pIOdaeeas establishe~ under section 15 of this Act;~~p~~s.~roduc~f what is planted or a part of plant which

\-is- harvested after cropping, cut, or gathered from a plant or~n9rt1turallield, or of a single kind of grain, legume or fruit

_ _ gathered in a single-season;."e:-~tor ueneral" 'means Chief Executive Officer of the Board

.~ appoirrted unner 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 withthe 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 activityconnected to the handling of cereals or other agriculturalproduce;

"processing" with its grammatical variations and cognate expressionmeans any act or thing done to cereals or other produce for thepurpose of adding its value and the word ''processor'' shall beconstrued accordingly;

Establish-mentof the Board

"Senior Officer" means an officer who is the head of a Unit, Sectionor Department;

"shared functions" means functions to be undertaken by allstakeholders as agreed from time to time and may includeresearch, provision of extension services, inputs supply, croppromotion and development, promotion of fair trade andcompetition, setting indicative prices, collecting, refining,maintaining and disseminating data and information relating tothe specific crop industry, improving technologies and deliverysystem;

"stakeholders' meetings" means meetings of the Cereal and otherproduce Council provided for under this Act;

"stakeholder" means a dealer in the specified crop industry such asthe central Government, local government authorities,cooperative societies, the Board, research and training institutes,traders and input suppliers, producers and other private actors incereals and other produce.

PART IITHE CEREALS AND OTHER PRODUCE BOARD

4.-(1) There is established a Board to be known as the Cerealsand other Produce Board of Tanzania.

(2) The Board established under subsection (1) shall be a bodycorporate 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 immovableproperty;

(d) be capable of entering into any contract oragreement as may be necessary or expedient for theproper performance of its functions under theprovisions of this Act; and

Compositionof the Board

Functions ofthe Board.

(e) do all such other acts and perform such functionswhich a body corporate may lawfully perform.

5.- (1) The Board shall consist of the Chairman to be appointedby the President and twelve other members to be appointed by theMinister 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 ofcandidates recommended by Cereals and Other produce ZonalCouncils.

(3) The provisions of the Schedule to this Act shall have effectas 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 Gazetteamend, vary or replace any of the provisions of the Schedule.

6.-(1) The main functions of the Board shall be to carry outcommercial activities and such other activities as are necessary,advantageous or proper for the development of the cereals and otherproduce industry.

Commer-cialfunctions

Powers ofthe Board

(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 tocereals and other produce;

(f) the promotion of technological advancement in cerealsand other produce; and

(g) the provision of assistance in the formation of farmersCo-operatives or Organisations.

7.-(1) The Board shall, subject to the provisions of this Act andany other written law, perform any commercial function or holdinterest in any undertaking or project associated with cereals andother 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 acompetitive 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 tomarket standards; and

(f) perform any other commercial functions approved by theMinister for the development of trade in cereals andother produce.

8.-(1) The Board shall, in the performance of its functions underthis Act, have powers to-

(a) build or otherwise acquire buildings or storagestructures, warehouses and processing machinery;

Establish-ment of theCommittees

Delegationof functionsof the Board

Disciplinaryfunctions ofthe Board

(b) establish cereals and other produce market centres,show rooms and exchange centres;

(c) provide training on matters relating to cereals andother produce; and

(d) perform such other functions which advance theobjective of this Act.

(2) It shall be the duty of the Board in the exercise of its powersand in the performance of its functions under this Act, to act in sucha manner as it appears to it appropriate for the purpose of promotingthe quality and competitiveness of the cereals and other produceindustry within and outside Tanzania.

9. The Board may, for the purpose of facilitating performance ofits functions establish such number of Committees as may benecessary for effective performance of the specific functions as theBoard may determine.

10.-(1) The Board may, subject to the terms, conditions andrestrictions as it may specify, delegate to any Committee or theDhector General or any other employee of the Board some of thefunctions and exercise of power conferred on it under this Act.

(2) Delegation made under subsection (1) shall not prevent theBoard from performing the same functions or exercising the powersdelegated.

(3) Notwithstanding the powers conferred on the Board todelegate its functions, the Board shall not delegate its commercialfunctions or disciplinary functions.

11.-(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 themanagement or any employee of the Board.

Appoint-mentofDirectorGeneral

Appoint-mentofseniorofficers andother staff

Appoint-ment ofagents andcontractors

Establish-mentofZonalCouncils

12.-(1) The Minister shall, upon recommendations of the Board,appoint on such terms and conditions a Director General who shallbe the Chief Executive Officer of the Board.

(2) The Director General shall hold office for a period of fiveyears and shall, subject to his satisfactory performance, be eligiblefor re-appointment for a further period of five years only.

13.-(1) The Board may appoint such number of senior officers tothe management of the Board.

(2) The Director General shall employ such numbers of otherstaff to perform the functions of the Board on such terms andconditions of employment.

(3) The Board may, for facilitating performance of functionsunder this Act, establish such number of departments, units andsections to be headed by directors and other staff appointed undersub-section (1).

14.-(1) The Board may appoint and employ, upon such termsand conditions, such number of agents and contractors as it maydeem necessary for the better carrying out of its functions asstipulated in this Act.

(2) Terms and conditions for appointment and employment shallbe contained in a written contract or agreement entered between theBoard and the agent or contractor.

PART III'?;ONAL COUNCILS OF CEREALS AND OTHER PRODUCE

15.-(1) There is established a Cereals and Other Produce ZonalCouncil 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;

Proceduresandmeetings ofthe Councils

(c) Northern zone - comprising Arusha, Manyara,Kilimanjaro and Tanga regions;

(d) Southern zone - comprising Mtwara and Lindiregions;

(e) Eastern zone - comprising Dar es Salaam, Coast andMorogoro regions.

(f) Western zone - comprising Tabora and Kigomaregions; and

(g) Southern highland - comprising Ruvuma, Mbeya,lringa and Rukwa regions.(3) The functions of Zonal Council shall be to:

(a) promote cereal and other produce including formationof farmers associations and other bodies in theirrespective areas;

(b) act as a consultative forum for cereals and otherproduce on price negotiations between farmers andbuyers or traders of the cereals and other produce;

(c) establish and operate a market information system forcereals, other produces and agricultural inputs in theirrespective areas;

(d) promote the use of weights, measures and gradingstandards for cereals and other produce;

(e) collaborate with the Board and local governmentauthorities in provisions of agricultural educations inrespect to the cereals and other produces in their areasof jurisdiction;

(f) perform such other functions as the Council deemsnecessary for the development of the cereal and otherproduce industry; and

(g) prepare and promote zonal production targets.

(4) The qualification, tenure of office and disciplinaryprocedure for the members of the Council shall be prescribed inthe Regulations.

16.-(1) Subject to the provisions of this Act, the Council shallhave power to regulate its own procedures in respect of the properconduct of its business.

Funds andresources ofthe Board

Books ofAccountsand Audit

(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 IVFINANCIAL PROVISIONS

17. 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 anyother written law or in respect of any matter incidentalto the carrying out of its functions.

18.-(1) The Board shall cause to be kept and maintained properbooks of accounts with respect to -

(a) sums of money received and expended by the Boardand matters in respect of which the receipt andexpenditure 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 accountsof the Board shall be done by the Controller and Auditor General ora person authorized by him.

AnnualReports

Remunera-tion ofMembers

Direction ofthe Minister

Offencesandpenalties

19.-(1) The Board shall, not later than six months after the endof financial year, submit to the Minister a copy of the auditedaccounts and annual report on the activities of the Board in respectof that year.

(2) The Minister shall, within a period of six months after theaccounts have been audited, lay the audited accounts and audit reportbefore the National Assembly.

(3) For the purpose of this section, "financial year" of theBoard shall be a period not exceeding twelve consecutive monthswhich conform with the financial year of the Government.

20. The Chairman and other members of the Board shall beentitled to allowances and fees at the rates as the Minister may inconsultation with the minister responsible for finance approve fromtime to time.

PART VGENERAL PROVISIONS

21.-(1) The Minister may give to the Board directions of ageneral or specific nature in writing as to the exercise orperformance of its functions and the Board shall give effect to suchdirection.

(2) Where the Board fails to perform any of its functions or togive effect to a direction given by the Minister without a reasonablecause, the Minister may exercise disciplinary power as may beappropriate.

22. 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 fme of not lessthan five million shillings or to imprisonment for term of not lessthan six months but not more than two years or both.

Offence byBodyCorporate

Offence byAgents

Generaloffences andpenalty

Powers tomakeRegulations

Power tomake Rules

Powers tomake by-laws

23.(1) Where any offence under this Act or subsidiarylegislation made under this Act is committed by a body corporate,any person who, at the time of the commission of the offence wasconcerned, as a director or an officer, with the management of theaffairs of the body corporate, commits an offence and is liable to beproceeded against and punished accordingly unless he proves to thesatisfaction of the court that he had no knowledge and could not bythe exercise of reasonable diligence have had knowledge of thecommission of the offence.

(2) Where an offence under this Act is committed by a bodycorporate, that body corporate shall be liable on conviction to a fineof not less than ten million shillings.

24. Where an offence under this Act or any subsidiary legislationmade under this Act it is committed by a person as an agent oremployee then, such agent or employee, the principal or employercommits an offence and is liable to be proceeded against andpunished accordingly unless he proves to the satisfaction of the courtthat he had no knowledge and could not by the exercise ofreasonable diligence have had knowledge of the commission of theoffence.

25. Any person who commits an offence under this Act to whichno specific penalty is provided shall on conviction be liable to a fineof not less than five million shilling or to imprisonment for a term ofnot less than one year but not exceeding three year or to both.

26. The Minister may make Regulations for better carryingout the provisions of this Act.

27. The Board shall, with the approval of the Minister,make rules for better farming, grading and trading for eachcategory of crops.

28A. A local government authority may, on consultationwith the Minister, make by-laws for better carrying out of theshared functions agreed upon with stakeholders.

Tenure ofoffice ofmembers

Number ofmeetings

Vice-Chairman

Proceed-ings of themeetings

Co-optedmembers

1. A member of the Board shall hold office for a term of three years from thedate of appointment and may be eligible for re-appointment for a further term ofthree years.

2.-(1) Notwithstanding paragraph 1, any member of the Board may at any timeresign from the Board by giving notice in writing to the Minister and from the datespecified in the notice or, if no date is so specified, from the date of receipt of thenotice by the Minister, he shall cease to be a member.

(2) Where a person ceases to be a Board member for any reason before theexpiration of his term of office, the Minister shall appoint another person in hisplace and the person so appointed shall hold office for the remainder of the term ofoffice of his predecessor.

3. The Board shall meet four times a year for ordinary business andmay convene extra ordinary meetings as may be deemed necessary fordischarging of its functions under the Act.

4. The Board shall appoint one of their members to be a Vice-Chairman.

5.-(1) All meetings of the Board shall be convened by the Chairmanor in the absence by the Vice-Chairman and in the absence of both theChairman and the Vice-Chairman from the meeting, the members presentshall elect one of their members to be an interim chairman of that meeting.

(2) The Chairman, or in the absence, the Vice Chairman, shallconvene a special meeting of the Board upon a request in writing signed bynot less. than four members of Board and shall cause such a meeting to beheld within twenty one days of receiving such request.

6. The Board may co-opt any person to attend any deliberations ofthe meeting of the Board as an expert but such person so co-opted shall nothave the right to vote.

Decision ofthe Board

A memberto declareinterest

Seal ofthe Board

Power toregulate itsprocedures

7.-(1) The Board shall make its decision by voting during the meetingand in case of any equality in the votes the Chairman or any other personpresiding at meeting shall have a casting vote.

(2) Notwithstanding subparagraph (1) decisions may be made by theBoard by circulation of papers to the members whereby each member shallexpress his views in writing provided that any member may require thatany such decision be deferred for discussion at a full meeting of the Boardof Directors.

(3) A circular resolution in writing signed by all the Members for thetime being in Tanzania shall be as effectual as a decision made at a meetingprovided that a member may require that notwithstanding the directors'signature the matter be brought at the following Board.

8.-(1) Half of the members of the Board shall constitute a quorum atany meeting and all acts, matters and things to be done by the Board shallbe decided by a simple majority of the members present at the meeting.

9. Subject to the provision of this Schedule relating to quorum; theBoard may act notwithstanding any vacancy in the members thereof and noact or proceedings of the Board shall be invalid by reason only of somedefect in the appointment of a person who purports to be a member thereof.

10. A member who is in any way directly or indirectly interested in acontract or proposed contract or any matter being deliberated by the Boardshall declare the nature of his interest to the other directors.

11. Minutes in proper form of each meeting of the Board shall be keptand shall be confirmed by the Board at its next meeting and signed by theChairman of the meeting.

12. There shall be a common seal of the Board which shall be of suchshape, 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 presenceof the Chief Executive Officer or a person authorised by him.

13. Subject to the provisions of this Act, the Board shall have powerto regulate its own procedures in respect of the meetings and the properconduct of its business."

PART VICONSEQUENTIAL AMENDMENTS TO THE FOOD SECURITY ACT

Constru-ctionCap. 249

28.-(1) This Part shall read as one with the Food Security Act,hereinafter referred to as the "principal Act".

(2) The principal Act is amended -(a) by deleting the long title and substituting for it the

following:"An Act to establish an Authority to regulate production,

processing and marketing of cereals and otherproduce; to provide for the national food securityassurance mechanisms and for other relatedmatters."

(b) in section 2 by -(i) deleting the references to the definition of

the word "the Board";(ii) inserting in the appropriate alphabetical

order the following new definitions-"Inter- 2. In this Act, unless the contextpre- otherwise requires-tation

"Authority" means the Cereal and otherProduce Regulatory Authority asestablished under section 3;

"Board" means the Board of Directors ofCereals and Other Produce RegulatoryAuthority established under section3(1);

"buying centre" means a place designatedby the local government authorities andapproved by the Authority to be a cropbuying centre;

"cereals" means edible grains such asmaize, oat, wheat, rice, millet andsorghum;

"premises" means land, building,factory, erection, vehicle, article, orreceptacle whatsoever used for thepurpose of growing, sorting,processing, storage, transporting orfor any other activity connected tothe handling of cereals or otheragricultural produce;

"crop" means the produce of what isplanted or a part of plant which isharvested after cropping, cut, orgathered from a plant or agriculturalfield, or of a single kind of grain,legume or fruit gathered in a singleseason;

"Director General" means Chief ExecutiveOfficer of the Authority appointedunder this Act;

"inspector" means an officer authorized bythe Authority to act as an inspector inaccordance with the provisions of thisAct;

"member" means a member of the Boardof the Authority and includes aChairman;

"Ministry" means the Ministry responsiblefor agriculture;

"other produce" means agriculturalproduce as may be gazetted by theMinister to be regulated under this Act;

"processing" with its grammaticalvariations and cognate expressionmeans any act or thing done to cerealsor other produce for the purpose ofadding its value and the word"processor" shall be construedaccordingly;

"Register" means the Register for farmingactivities established under this Act;

"stakeholders' meeting" means zonal,cereal and other produce councilmeeting held by specified cropstakeholders;

"contract farming" means farming under anagreement between growers, farmers orproducers on one part and financierssuch as buyers, sellers, processors orbankers on the other part;

"stakeholder" means a dealer in thespecified crop industry such as theCentral Government, local governmentauthorities, cooperative societies, theAuthority, research and traininginstitutes, producers, traders and inputsuppliers;

"shared functions" means joint functions tobe undertaken by all stakeholders asagreed from time to time and mayinclude research, provision ofextension services, inputs supply, croppromotion and development,promotion of fair trade andcompetition, setting indicative prices,collecting, refining, maintaining anddisseminating data and informationrelating to the specific crop industry,improving technologies and deliverysystem;

"input" includes planting material,agrochemical, fertilizer, farmimplements and packaging material;

"natural agricultural resource" includesagricultural land, water and naturalvegetation."

"dealer" means a person who is engaged inthe business of procuring, processing,importation, exporting, distribution orsale of cereals or other produce;

"processor" means a person who convertsor transforms on a commercial scale,any cereal or other produce regulatedby this Act into a finished or semi-finished product;

"producer" means a person who growscereals or other produce;

"trader" means a person who, as broker,dealer, marketing company, or otherpurchaser, acquires any cereals or otherproduce from a producer or any otherpers<)llthrough purchases or otherwise,for the purpose of resale;

"food" means any substance or productwhether processed, partially processedor unprocessed intended to be orreasonably expected to be ingested byhuman in its intended use;

"food security" means a situation whereby.all people at all times have physical,social and economic access, tosufficient and safe food to meet theirnutritional needs and culturalpreferences for an active and healthylife;

(c) deleting Part II and substituting for it the followingnew Parts:

"PART IITHE CEREAL AND OTHER PRODUCE REGULATORY AUTHORITY

"Establi-shmentoftheAuthority

3.-(1) There is hereby establisheda Authority to be known as theCereal and Other ProduceRegulatory Authority.

(2) The Authority shall be a bodycorporate and shall -

(a) have perpetual successionand a common seal;

(b) in its corporate name becapable of suing or beingsued;

(c) be capable of purchasing oracquiring in any mannerand alienating any movableand immovable property;

(d) be capable of enteringinto any contract oragreement as may benecessary or expedientfor the properperformance of itsfunctions under theprovisions of this Act;and

(e) perform such functionswhich a body corporatemay lawfully perform forthe proper discharging ofits functions under thisAct.

Functionsof theAuthority

4.-(1) The main functions of theAuthority shall be to carry outregulatory activities and othermatters which are necessary,advantageous or proper for thebenefit of the cereals and otherproduce industry.

(2) Without prejudice to thegenerality of subsection(1), theregulatory functions of theAuthority shall include to-

(a) develop and enforcesustainable agronomicalstandards for product,processing and marketingof cereals and otherproduce;

(b) ensure fair competition,fair trade, and to set andmonitor indicative pricesas established by marketforces and other mattersrelated thereto;

(c) collect, refine, maintain,or disseminateinformation or datarelating to the cereals andother produce;

(d) license persons engagedin the marketingprocessing of cereals orother produces and theirby-products;

(e) make regulations forcultivation, marketing,processing importation,exportation and storage ofthe cereals and otherproduce;

(f) register grower, dealers,and premise relating tocereals and otherproduce;

(g) inspect or cause to beinspected the farms,grains, premises andother facilities for thecereals and otherproduce;

(h) issue import and exportpermits for the cerealsand other produce;

(i) regulate or to control thecollection, movement,storage, sale, purchase,transportation, marketing,processing, distribution,importation, exportation,disposal and supply ofcereal and otherproduces;

(j) establish a system underwhich cereals and otherproduce trades shallregister and report, forstatistical purposes,information on the stockshandled or held by them;

Composi-tion of theBoard ofAuthority

(k) advise the Minister on theproper production ofcereals and other producein relation to the needs ofTanzania and the extent towhich control over theexportation and importationof cereals and otherproduces is desirable ornecessary; and

(1) perform any other functionsas may be require under thisAct.

(3) In fulfilling its functions, theBoard shall comply with general orspecific directions which the Ministermay give.

5.-(1) There is hereby established aBoard of Directors which shall be thegoverning body of the Authority andshall consist of the followingmembers-

(a) a Chairman to be appointed bythe President;

(b) a representative from TanzaniaFood and Drugs Authority;

(c) a representative from TanzaniaBureau of Standards;

(d) a member from the Ministryresponsible for marketing ofagricultural produce;

(e) a member from the Ministryresponsible for agriculture;

(f) a member representing theAttorney General's Office;

Powers oftheAuthority

(g) a member from the Ministryresponsible for localgovernment authorities; and

(h) two persons who possessknowledge and experiencerelevant to the cereals andother produce industry.

(2) the Director General shall be theSecretary to the Board.

(3) Member of the Board ofDirectors under subsection (1) (b) to (h)shall be appointed by the Minister.

(4) The provisions of the FirstSchedule to this Act shall have effect tothe terms of office of members,cessation of membership, proceedingsof the Board and other matters relatingto the Board.

(5) The Minister may, by noticepublished in the Gazette, amend, varyor replace any or all provisions of theSchedule to this Act.

6.-(1) The Authority shall, inperforming its functions, have powersto -

(a) delegate any of the powersand functions of theAuthority to any person inthe Authority or to anyCommittee established bythe Authority or, with theconsent of the Minister, toany other person;

(b) arbitrate between farmersand other dealers of cerealsand other produce; and

Committ-ees of theAuthority

Delegationof powersorfunctionsof theBoard

Establish-mentofZonaloffices

Discipli-naryfunction ofthe Board

(c) train crop grading experts,inspectors, farmers andother dealers of cereal andother produce.

(2) It shall be the duty of theAuthority in the exercise of its powersand in the performance of its functionsto act in such manner as it appears to itappropriate for the purposes ofpromoting quality and competitivenessof the cereal and other produce industrywithin and outside Tanzania.

7. The Board may, for the purposesof facilitating performance of itsfunctions, establish such number ofCommittees to perform specificfunctions as it may deem necessary.

8. The Board may delegate to any ofthose committees such of its powers asit may deem fit.

9. For proper discharging of itsfunctions under this Act, the Authoritymay establish zonal offices as may bedeemed appropriate.

10.-(1) The Board shall be-(a) the disciplinary authority

over the Director Generaland senior employees ofthe Board; and

Appoint-ment of theDirector

Appoint-mentofseniorofficers andother staff

Appoint-mentofagents andcontractors

(b) the appellate disciplinaryauthority for otheremployees of the Board.

(2) The Minister may make generalor specific regulations prescribingprocedures for disciplinary measuresagainst the management or anyemployee of the Authority.

11.-(1) The Minister shall, uponrecommendations of the Board, appointon such terms and conditions a DirectorGeneral who shall be the ChiefExecutive Officer of the Board.

(2) The Director General shall holdoffice for a term of five years and maybe eligible for re-appointment subject tosatisfactory performance of hisfunctions.

12.-(1) The Board may appoint suchnumber of senior officers to themanagement under the supervision ofthe Director General.

(2) The Director General shallemploy number of employees toperform the functions of the Boardunder his supervision on such terms andconditions stipulated in theiremployment contracts.

13.-(1) The Authority may appointand employ upon such terms andconditions such number of agents andcontractors as it may deem necessaryfor the better carrying out of itsfunctions under this Act.

(2) The terms and conditions forappointment and employment shall becontained in a written contract oragreement entered between theAuthority and the agent or contractor.

PART IIIRE3ISTRATION AND LICENSING OF GROWERS AND TRADERS OF CEREALS

AND OTHER PRODUCE

Registra-tion ofgrowersand traders

Registra-tion ofprocessors

14.-(1) Any person who deals incereals and other produce being atrader, processor or warehouse owner oroperator shall be required to apply forregistration with the Authority.

(2) Application for registrationunder subsection (1) shall be made inthe prescribed form and shall besubmitted to the Authority which shallupon registration of the dealer, issue aregistration number.

(3) Procedures for registrationunder this section shall be as may beprescribed in the regulations.

(4) The Director General maydelegate his powers for registration tothe Zonal Officer in-charge.

15.-(1) The Authority shall, forpurposes of facilitating registration,require registration of all processors ofcereals and other produce to be effectedin their respective districts authorities.

(2) Proceduresand otherrequirementsfor registration under this section shallbe prescribed in the regulations.

Contractfarming

16.-(1) A registered farmer may, forthe purposes of facilitating farmingactivities, enter into contract forfarming with a financier, buyer,processor, investor or banker.

(2) The contract for farmingentered under subsection (l) shall be inthe prescribed standard form and shallcontain:

(a) name and address of theregistered farmer;

(b) name and address of thefinancier;

(c) obligations of the parties;(d) type or kind of facilitation

to be granted or loaned tothe farmer;

(e) terms and conditionsimposed on the farmer; and

(f) such other information asmay be necessary for thepurpose of such contract.

(3) A contract for farming enteredto under subsection (1) shall, beforebeing signed, be approved by theAuthority.

(4) A fmancier, buyer, processor,investor or banker shall not facilitate aregistered farmer in any manner if thatfarmer does not have a contract offarming as required under this section.

(5) A person who contravenes thissection commits an offence and shall onconviction be liable to a fine of not lessthan two million shillings but notexceeding five million shillings or toimprisonment for a term of not less than

Registra-tionofcontract forfarming

Maintena-nce ofRegister

six months but not exceeding twoyears or to both

17.-(1) A fanner who entered into acontract for fanning or any agreementwith a fmancier, buyer, processor,investor or banker shall submit a copyof the contract or agreement to theauthority for perusal, advice andregistration.

(2) The Authority shall monitor theimplementation of contract for farmingor agreement in order to protect rightsof both parties.

18.-(1) There shall be a Register ofgrowers, traders, processof8-__andwarehouse owners or operators whereall matters relating to cereal and otherproduce provided for under this Actshall be entered.

(2) The Authority shall cause to bekept and maintained in such form as theAuthority deems fit, a register of allland planted with cereals or any otherproduce, owners, occupiers andmanagers thereof and of all buildingsused or intended to be used for grading,market centers, warehouses andprocessing factories.

(3) The register kept or maintainedby the Authority under subsection (2)shall be a public document and shall beaccessible to the public upon requestand payment of prescribed fee.

(4) A person shall have a right todemand and be given an extract fromthe register upon payment of fee asprescribed in the Regulations.

Issuance oflicense

19.-(1) A person registered as acereals and other produce dealer underthis Act shall apply to the Authority fora license for buying, selling, exportingand importing and processing cerealsand other produce.

(2) Application for licence shall bein the prescribed form and shall containthe particulars of the applicant, thecereals and other produce activitiesinvolved, location of the business andany other information as may berequired for that purpose.

(3) The Authority may, afterconsideration of an application underthis section-

(a) issue licence to theapplicant upon such termsand conditions as theAuthority may prescribe;or

(b) refuse to issue licence anddirect the Director Generalto inform the applicant thereasons for refusal.

(4) A person shall not buy, process,sell, operate warehouse, import orexport any cereals or other produce oncommercial basis without a licenceissued by the Authority.

(5) A person who contravenes theprovisions of this section commits anoffence and is liable on conviction to afine of not less than two millionshillings but not exceeding five millionshillings or to imprisonment for a termof not less than one year but not morethat three years.

Fonnoflicenses

Cancella-tion orsuspensionof licence

Offencesrelating tolicences

20. The licences granted under theprovisions of this Act shall be in theprescribed form and shall contain-

(a) names, and address of thelicence holder;

(b) the kind of crops involved;(c) the Registration number of

the licence holder;(d) terms and conditions as

may be imposed on thelicence by the Authority;and

(e) the seal of the Authorityand the signature of theDirector General or aperson authorized by him.

21.-(1) The Authority may, wherethe terms and conditions of licence havenot been complied with, cancel orsuspend any licence issued under thisAct.

(2) Any person aggrieved by thedecision of the Authority pursuant tothis section may, within sixty days fromthe date of decision of the Authority,appeal to the Minister.

(3) Procedures for appeals shall beas may be prescribed in theRegulations.

22. Any person who, buys, imports,exports, or processes cereals and otherproduce, for commercial purposes,without a licence issued by theAuthority commits an offence and on

Power tocallinformation

conviction shall be liable to a. fine ofnot less than a two million shillings butnot exceeding five million or toimprisonment for a term of not less thanone year but not more than two years.

23.-(1) For the purposes of securingproper performance of its functionsunder this Act, Authority may requirein writing any department, organization,authority or body of persons, to furnishinformation as may be required.

(2) Any person who is required tofurnish information under subsection(l) shall comply with that requirementand any person who refuses or fails tocomply with that requirement shall beguilty of an offence.

PART IVCROP GRADING, WEIGHING· AND INSPECTION

Grading ofcrops

24.-(1) All cereals or any otherproduce brought at the buying centrefor sale shall be kept in such gradesdepending on the quality of such cerealsor any other produce.

(2) It shall be the duty of theproducer or seller of the cereals andother produce to ensure appropriategrading of the cereal or other produceprior to selling at the centre.

(3) A person with a valid tradinglicense in cereals or other produce shallgrade and weigh the produce by a dulyregistered grading expert authorized bythe Authority.

Appoint-mentofgradingexperts

Appoint-mentofInspectors

(4) A person who trades in un-graded cereal or other produce commitsan offence and is liable on conviction toa fine not less than five million shillingsor to imprisonment for a term not lessthan six months but not more than twoyears or to both.

(5) Any person who purports tograde the cereals or other producewithout qualification as a gradingexpert registered by the Authoritycommits an offence and is liable onconviction to a fine of not less than twomillion shillings but not exceeding fivemillion shillings or to imprisonment fora term not less than one year but notmore than three years or to both.

(6) The Authority shall make rulesin respect of procedures for grading,processing, storage, transportation andmarketing of each crop.

25. The Authority shall appointtechnically trained persons to begrading experts for relevant crops whoshall verify grades of the crops.

26.-(1) The Authority may appointcompetent persons to be inspectors whoshall have and exercise powersgenerally to supervise the arrangementfor land preparation, cultivation,processing and export of cereals andother produce.

(2) Without prejudice to thegenerality of subsection (1), theinspector shall have and exercise such

Power ofInspectors

other powers including the inspectionof fields, processing plants, marketingcentres, the taking of samples and thecertifying of weight and quality ofcrops as are provided for in this Act oras may be prescribed in relevantregulations.

(3) A person appointed by theAuthority under subsection (1) shallperform duties upon such terms andcondition as may be determined by theAuthority.

27.-(1) An Inspector or any otherperson duly authorized in writing in thatbehalf may, at any reasonable time,enter into any vehicle, carrier or anyplace where cereals or other produceare grown, processed, packed, stored orsold and inspect or examine the samefor the purpose of ensuring compliancewith the provisions of this Act.

(2) The Inspector or any authorizedperson may, in the exercise of hispowers under this Act, take samples ofany crop or its by- product found in orin any store, plant or carrier, or anyother place or premises including anyland and may tests such samples as hemay deem necessary.

(3) Any person who obstructs theinspector or any other authorizedperson in the exercise of the powerconferred upon him by this Act, or whoneglects or refuses to produce to theinspector or an authorized person,books, records or anything which maybe required for the purpose ofinspection commits an offence.

Funds andresourcesof theAuthority

Books ofAccountsand Audit

PART VFINANCIAL PROVISIONS

28. The funds and resources of theAuthority shall consist of-

(a) such sums of money asmay be appropriated byParliament;

(b) money raised by way ofloans, donations or grantsfrom within and outsideTanzania;

(c) loan or subsidy granted tothe Authority by theGovernment or an)'otherperson;

(d) such sums of money orproperty which maybecome payable to orvested in the Authorityunder this Act or anyother written law or inrespect of any matterincidental to the carryingout of its functions.

29.-(1) The Authority shall cause tobe kept and maintained proper books ofaccounts with respect to -

(a) sums of money receivedand expended by theAuthority and matters inrespect of which thereceipt and expendituretake place;

(b) assets and liabilities ofthe Authority; and

AnnualReport

Remunera-tion ofmembers

(c) the income andexpenditure statement ofthe Authority.

(2) The auditing of the fmancialreports and books of accounts of theAuthority shall be done by theController and Auditor General or aperson authorized by him.

30.-(1) The Authority shall, notlater than six months after the end offinancial year, submit to the Minister acopy of the audited accounts and annualreport on the activities of the Authorityin respect of that year.

(2) The Minister shall within aperiod of six months after the accountshave been audited lay the audited,accounts and audit report before theNational Assembly.

(3) For the purpose of this section,"financial year" of the Authority shallbe a period not exceeding twelveconsecutive months which conform tothe financial year of the Government.

31. The Chairman and othermembers of the Board of the Authorityshall be entitled to allowances at suchrates as the Minister may upon therecommendation of the Board approvefrom time to time.

PART VIIGENERAL PROVISIONS

Designa- 32. The Minister may, by noticetio~~ I published in the Gazette, designate any~~cortura agricultural crop or food commodityfood that he considers essential for the foodcommodi- security in the country for the purposesties for the of national food security.nationalfoodsecurity

Duty toensure foodsecurity athouseholdlevel

Offenceand penalty

33-(1) In order to guarantee foodsecurity at household level, any personin charge of a household shall ensurefood security within his household.

(2) The local government authoritymay, in consultation with the Minister,make by-laws to facilitate effectiveenforcement of subsection (1).

34. Any person who -

(a) refuses or fails to furnishany requested informationunder this Act or furnishesfalse information;

(b) obstructs or prevents anyofficer from exercising hispowers under this Act;

(c) tampers with anyinformation or goods thatmay be required by anyofficer for the purposes ofenforcement this Act;

(d) fails to cooperate with anyofficer in enforcement ofthis Act, or

Protectionof members

(e) fail to comply with anyprovision of this Act,

commits an offence and on convictionshall be liable to a fme of not less thantwo million shillings but not exceedingfive million shillings or toimprisonment for a term of not less thansix months but not exceeding threeyears or to both.

35. No act or thing done or omittedto be done by any member of theAuthority or committee, staff, servantor agent of the Authority shall, if the actor thing was done in good faith for thepurpose of carrying out the provisionsof this Act or of any order orregulations made there under, rendersuch person to any action, liability,claim or demand whatsoever.

36.-(1) Where any court convictsany person of an offence under this Actor under any subsidiary legislationmade under it, may order in addition toany penalty imposed, the forfeiture bythe Government of the property inrespect of which the offence has beencommitted.

(2) Any property forfeited under thissection shall be delivered to theGovernment and shall vest in theAuthority free of any mortgage, charge,lien or other encumbrance.

Generaloffence andpenalty

Offencesby BodyCorporate

Offencesby Agents

(3) The Minister' shall have thepower to determine the procedures fordisposal of anything forfeited to theGovernment under sub-section (2).

37.(1) Any person who contravenesa provision of this Act, commits anoffence and except otherwise providedin the provision be liable on convictionto a fine of not less than five millionshillings or to imprisonment for a termof not less than one year but no morethan three years or to both.

(2) Where an offence under this Actis committed by a body corporate, thatbody corporate shall on conviction beliable to a fine of not less than tenmillion shillings.

38. Where any offence under thisAct or subsidiary legislation madeunder this Act is committed by a bodycorporate, any person who, at the timeof the commission of the offence wasconcerned, as a director or an officer,with the management of the affairs ofthe body corporate, commits an offenceand is liable to be proceeded againstand punished accordingly unless heproves to the satisfaction of the courtthat he had no knowledge and could notby the exercise of reasonable diligencehave had knowledge of the commissionof the offence.

39. Where an offence under this Actor any subsidiary legislation madeunder this Act it is committed by a

Notifica-tion ofOrders anddirections

Burdenofproof

Power tomakeregulations

person as an agent or employee of theprincipal then, such agent or employee,the principal or employer commits onoffence and is liable to be proceededagainst and punished accordingly unlesshe proves to the satisfaction of the courtthat he had no knowledge and could notby the exercise of reasonable diligencehave had knowledge of the commissionof the offence.

40. Where any order or directionmade or given by the Minister or theAuthority under this Act is not requiredto be published in the Gazette, the orderor direction shall be brought to thenotice of persons affected or likely tobe affected thereby in a mannerdetermined by the Minister, or as thecase may be, the Authority.

41. In any proceedings for anoffence under this Act the burden toprove that the order, direction orrequirements, the contravention ofwhich constitutes the offence withwhich the accused is charged, shall notlie on the accused.

42.-(1) The Minister may makeRegulations for effectiveimplementation of the provisions of thisAct.

(2) Without prejudice to thegenerality of the power conferred bysubsection (1), of this section theRegulations shall-

(a) prescribe for the betterperformance of the duties of theAuthority;

(b) direct or prohibit the movementof cereals or other producewithin or outside the country,either generally or in specifiedcircumstances and subject toany conditions which may bespecified;

(c) prescribe for the manner inwhich data shall be collectedand maintained by theAuthority;

(d) prescribe for the procedures formaking any application andregistration of farmers ordealers of cereal and otheragricultural produce;

(e) prescribe for fees to be chargedunder this Act;

(f) prescribe for the establishmentand functions of any sub-committees, zones or centers;

(g) prescribe for the standards ofconduct of every dealer inrelation to the trade in anycereals and other produce;

(h) prescribe for the necessaryconditions for ensuring foodsecurity and the householdlevel; and

(i) prescribe for any other matteror thing which is required ornecessary to be prescribed orprovided for under this Act.

(e) by introducing the following Schedule.

Cereals and Other Produce

PROVISIONS RELATING TO THE CEREALS AND OTHER PRODUCES REGULATORYAUTHORITY .

Tenure of officeof members

Number ofmeetings

Proceedings ofthe meetings

Co-optedmembers

Decision of theBoard

1. A member of the Board of Directors appointed in terms of this Act, shallhold office for a term of three years from the date of his appointment and maybe eligible for re-appointment for a further term of three years.

2.-(1) Notwithstanding paragraph I, any member of the Board may at anytime resign from the Board by giving notice in writing to the Minister and fromthe date specified in the notice or, if no date is so specified. from the date ofreceipt of the notice by the Minister, he shall cease to be a member.

(2) Where a person ceases to be aBoard member for any reason before theexpiration of his term of office, the Minister shall appoint another person in hisplace and the person so appointed shall hold office for the remainder of theterm of office of his predecessor.

3. The Board shall meet four times a year for ordinary business andconvene extra ordinary meetings at any time as it may deem necessary fordischarging its functions under the Act.

4. The Board shall appoint one of their members to be a Viee-Cbairman.

5.-( I) All meetings of the Board shall be convened by the Chairman or inthe absence by the Vice-Chairman and in the absence ofboth the Chairman andthe Vice-ChairmaIlo from the meeting, the members present shall elect one oftheir members to be an interim chairman of that meeting.

(2) The Chairman. or in the absence, the Vice Chairman, shall convene aspecial meeting of the Board upon a request in writing signed by not less thanfour members of Board and shall cause such a meeting to be held withintwenty one days of receiving such request.

6. The Board may co opt any person to attend any deliberations of themeeting of the Board as an expert but such person so co-opted shall not havethe right to vote.

7.-(1) The Board shilIl make its decision by voting during the meeting andin case of any equality in the votes the Chairman or any other person presidingat meeting shall have a casting vote.

A member todeclare interest

SealoftheBoard

Power toregulate itsprocedures

(2) Notwithstanding subparagraph (1) decisions may be made by the Boardby circulation of papers to the members whereby each member shall express hisviews in writing provided that any member may require that any such decisionbe deferred for discussion at a full meeting of the Board.

(3) A circular resolution in writing signed by all the Members for the timebeing in Tanzania shall be as effectual as a decision made at a meeting providedthat a member may require that notwithstanding the directors' signature thematter be brought at the following Board.

8. Half of the members of the Board shall constitute a quorum at anymeeting and all acts, matters and things to be done by the Board shall bedecided by a simple majority of the members present at the meeting.

9. Subject to the provision of this Schedule relating to quorum, the Boardmay act notwithstanding any vacancy in the members thereof and no act orproceedings of the Board shall be invalid by reason only of some defect in theappointment of a person who purports to be a member thereof.

10. A member who is in any way directly or indirectly interested in acontract or proposed contract or any matter being deliberated by the Board shalldeclare the nature of his interest to the other directors.

11. Minutes in proper form of each meeting of the Board shall be kept andshall be confirmed by the Board at its next meeting and signed by the Chairmanof the meeting.

12.-(1) There shall be a common seal of the Board which shall be of suchshape, 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 ofthe Chairman of the Board or any other member authorised by him, Chiefexecutive Officer or a person authorised by him.

13. Subject to the provisions of this Act the Board shall have power toregulate its own procedures in respect of the meetings and the proper conductof its business."

Passed in the National Assembly on the 30th October, 2009.