The Act would also open up several avenues for the promotion of food processing industry in the state.
Under the provisions of the Act, the registration of the buyers had been made compulsory with the competent authority prior to an agreement between the buyers and the farmers so as to ensure that only genuine buyer or a person with valid antecedents could enter upon such agreement.
It had been clearly stipulated that the right of ownership or possession of land on which the farming was to be done would solely vest in the farmer and would not be a part of said agreement, in any case.