44. Contract Farming
44. Contract Farming — A Unit engaged in production or processing of agriculture or horticulture products, may, on the basis of annual permission from the Specified Officer, remove to a farm in the Domestic Tariff Area, inputs, namely, seeds, fertilizers and chemicals for pre and post harvest treatment, micro nutrients, plant and growth regulators and other organic and inorganic substances used for plant nutrition, insecticides, fungicides, weedicides, herbicides and the following equipments, namely:—
(a) Filters;
(b) Dripliers, Driplines and Drip-fittings;
(c) Micro sprinklers and misters;
(d) Agriculture sprinklers;
(e) Fertilizer tanks;
(f) Valves;
(g) Fertilizer pumps and chemical injections;
(h) Crates, drums and preservation media (such as acetic acid and vinegar);
(i) Grading tables;
(j) Green House equipment, accessories, heated rooting tables, propagation trays, seeding machines;
(k) Plants or parts thereof, seeds, saplings, tubers, bulbs, rhizomes, root cuttings, all types of grafts, tissue culture material and
other vegetatively propagated material utilized for sowing or planting;
(l) Growing media such as Peat Moss (including peat litres whether or not agglomerated), Pearlite/ verniculate, rockwool, coca peat,
hydrocorn, foam based medium and other cultivation medium:
Provided that the removal of such items shall be subject to following conditions, namely:—
(i) supply of inputs by Unit to the contract farm(s) shall be subject to the input-output norms as may be approved by the Board;
(ii) there shall contract farming agreement between the Unit and the Domestic Tariff Area farmer(s);
(iii) the Unit has been in existence for at least two years and is engaged in export of agriculture or horticulture products:
Provided that bank guarantee equivalent to the duty foregone on the capital goods or inputs proposed to be taken out shall be furnished to the Specified Officer if the Unit has not been in existence for two years.
