(1) The Commissioner shall, by notification, declare any area specified therein as factory zone for the purpose of supply of fresh oil palm fruit bunches to the factory specified for the purpose of purchase of oil palm FFB and any other oil palm product by the factory.
(2) Where a particular area is declared as factory zone under sub-section (1), the oil palm growers in that area shall supply the fresh fruit bunches from the oil palm plantations grown in that area only, to the factory to whom the factory zone is attached and to none else.
(3) Where a particular factory zone is declared under this section, the occupier of the factory in the concerned factory zone and for which the zone is declared, shall buy all the oil palm FFB produced by all the oil palm growers or their co-operative societies in that factory zone at a -5- price which shall not be less than the price fixed by the authority empowered to fix the price under this Act.