Food Reserve (Amendment) Act, 2005

3. The principal Act is amended by the repeal of Part IV and the substitution therefor of the following: Repeal and replacement ofPartN Single Copies of this Act may be obtained from the Government Printer, P.O. Box 30/36, 10/00, Lusaka. Price K4000 each. 134 No. 20 of 2005] Food Reserve Marketing and trading of designated agricultural commodities Functions of Agency related to designated agricultural commodities PART IV CROP MARKETING

10. (I) The Agency shall engage in the marketing and trading of designated agricultural commodities. (2) In conducting activities under subsection (!) the Agency shall- (a) announce in the Gazette the designated agricultural commodities, the quantities, places, procurement methods and methods of payment for the purchase of designated agricultural commodities; (b) identify and enter markets in rural areas; (c) establish or determine prices and create markets for designated agricultural commodities in rural areas where involvement by the private sector is minimal; ( d) operate through established market centres in rural areas or farmers' organisations such as co-operatives and associations offarmers; and (e) exp�"',·t-::cess designated agricultural commodities.

11. (1) The Agency shall- (a) establish and maintain a market information system for the benefit of the consumer and for any person engaged i n the production, marketing and processing of each designated agricultural commodity; and (b) in establishing the market information system under this section, consult representatives of consumers, producers, traders, processors and any other person engaged i n the production, marketing and processing ofa designated agricultural commodity. (2) TheAgency shall collect and disseminate information relevant t o the marketing of designated agricultural commodities, including information on domestic sales and export sales of a designated agricultural commodity for the purposes of the requirements of consumers, producers, traders, processors and any other persons,engaged in the production, marketing or processing of such designated agricultural commodities. Food Reserve [No. 20 of 2005 135 I IA. Subject to the Agricultural Credits Act, the Agency shall, prior to purchasing a designated commodity, inspect all relevant records to determine if the trader or processor selling the designated commodity has previously pledged the commodity as security or whether a charge or lien has been registered under that Act. l lB. Any registered trader and processor who sells any designated commodity in disregard of a registered charge or lien on the designated commodity referred to in section eleven A commits an offence and shall be liable to a penalty under the Agricultural Credits Act.

4. Section thirteen of the principal Act is amended by the deletion of the words" ten penalty units" and the substitution therefor of" fifty thousand penalty units, or to imprisonment for a term not exceeding six months, or to both ".

5. The principal Act is amended by the repeal of Part VI and the substitution therefor of the following new Part: Power to inspect records Cap. 224 Penalties for disregarding charge or lien Cap. 224 Amendment of section 13 Repeal and replacement of Part VI __,.,' MANAGEMENT AND LEASE OF STORAGE FACILITIES AND EQUIPMENT

14. (!) The Agency shall manage, lease and maintain such storage facilities and equipment, to be used for designated agricultural commodities, as it may consider necessary. (2) The Minister may, by statutory instrument, make regulations for the better carrying out of the functions of the Agency specified in subsection (I). Functions related to storage facilities and equipment

15. (!) The Agency shall collaborate with other institutions to facilitate the operations of markets and agri­ business activities. Agri business a ctivities (2) In this section, " agri-business activities " include- (a) the operation of a system where a farmer obtains inputs on credit and agrees with the lender to recover the loan in full from the sale of the farmer's produce, and pay the farmer the difference, if any, for the recovery of credit; and (b) the maintenance of a system which allows a farmer or any person to obtain credit against agricultural commodities held in a bonded warehouse. 136 No. 20 of 2005] Food Reserve Amendment of principal Act

6. The Principal Act is amended by the deletion of the tenn­ (a) " designated commodity" wherever it appears and the substitution therefor cif the tenn " designated agricultural commodity" and (b) " national food reserve " wherever it appears and the substitution therefor of the term" national strategic food resetve ". Amendment of Schedule

7. The Schedule to the principal Act is amended­ (a) in paragraph 2 by- (i) the repeal of subparagraphs (I) and (2) and the substitution therefor of the following: (1) The Agency shall consist of the following part-time members: (a) a representative of- (i) the small scale farmers; (ii) the Zambia National Farmers Union; (iii) the Millers Association of Zambia;and (iv) the Bankers Association of Zambia; (b) one person from a co-operative; (c) two senior officials from the Minisby responsible for agriculture and co­ operatives; one of whom shall be from the Division responsible for marketing and co-operatives and the other from the Division responsible for agriculture; (d) one senior official from the Ministry responsible for commerce, trade and industry; (e) one senior official from the Ministry responsible for finance and national planning; and (j) a representative of the Attorney­ General. . ..,, ) Food Reserve [No. 20 of 2005 137 i n (2) The members referred to subparagraph (! )shall b e nominated b y their respective organisations or Ministries and appointed by the Minister. (ii) the repeal of the proviso and the substitution therefor of the following: Provided that the Chairperson shall not be elected from the members appointed under clauses (c), (d) or (e). (b) in paragraph 9 by the deletion of subparagraph (2) and the substitution therefor of the following: (2) Any person who knowingly contravenes the provisions of subparagraph (I) commits an offence and shall be liable, upon conviction, to a fine not exceeding ten thousand penalty units o r to imprisonment for a term not exceeding three months, or to both. (c) in paragraph 10 by the- (i) deletion in subparagraph (2) of the full stop at the end of clause (c) and the substitution therefor of a semi-colon; and (ii) insertion before subparagraph (3) of the following new paragraph (d): (d) lease storage facilities and equipment. ) 138 No. 20 of 2005] Food Reserve ,,