Section 29. Power to enter into agreement for purchase of foodgrains after harvest

29. Power to enter into agreement for purchase of foodgrains after harvest.— (1) A Food Corporation may enter into agreement with any grower of foodcrops for the purchase of foodgrains after the harvest of such crops and any such agreement may provide that any sum payable by the Corporation to the grower under such agreement shall be payable to any scheduled bank or other financing agency nominated by the grower in this behalf to such extent as may be specified in the agreement. 1. Subs. by Act 36 of 1988, s. 2, for sub-section (1) (w.e.f. 20-8-1988). 2. Subs. by Act 27 of 2001, s. 2, for the proviso (w.e.f. 22-5-2001). 3. Ins. by Act 67 of 1972, s. 5 (w.e.f. 15-12-1972). (2 ) The scheduled bank or other financing agency referred to in sub-section (1) may, on the basis of any agreement referred to in that sub-section, lend money to a grower of food crops who has entered into such agreement. — 30. Guarantee by Food Corporation. A Food Corporation may, upon such terms and conditions as it may think fit, guarantee any loan referred to in sub-section (2) of section 29, and also any other loan raised by a grower of foodcrops, which is re-payable within a period not exceeding five years.