Chapter II ESTABLISHMENT OF MARKETS

1. (1) The state Government may, by notification in the Official Gazette, declare its

1. (2) The notification under sub-section
2. (1) shall state that any objections or

suggestions which may be received by the Government within such period as

shall be specified in the notification, not being less than thirty days will be considered by the Government.

1. (3) Government may hold consultations with Local Bodies, including Panchayati Raj Institute
   • (PRIs) who own and operate periodical markets or haats or any other

such markets for marketing of agricultural produce and livestock within their

jurisdictional area, to bring such markets under the regulation of this Act, so as to

develop these markets to efficiently function as marketing platform nearest to

the farm gate.

Subject to the notification made under Section 3 and after considering such objections and suggestions as may be received from any source before expiry of

such period,the State Government may,by another notification, declare the whole

State as one unified market area specified in the notification issued under Section 3 for the purpose of regulation of marketing of all or any of the kinds of agricultural

produce and livestock specified in the notification issued under section 3 of

this Act. Explanation:The area so declared shall be a single unified market area for

the whole State for regulation of marketing of notified agricultural produce and

livestock.

delineated market area for the purpose of election of the Members of such Market Committee and undertaking developmental activities therein. Explanation: The Market Committee shall not regulate marketing of notified

agricultural produce and livestock in its delineated market area. The Market

Committee will enforce regulation on marketing of notified agricultural produce and livestock within the principal market yard, sub-market yards and market sub-yards.

1. (1) Subject to the procedure specified in sections 3 and 5, the State Government

regulated, for regulation under this Act.

1. (2) After the alteration of delineated market area or the items of agricultural produce and livestock, if any, under section 5, it shall not be necessary for the Director to make any declaration under this section unless he is of the opinion that it is

necessary to declare any area, hitherto not declared, as delineated market

area of any Market Committee.

1. (1) In a State, there may be-
   • (a) principal market yards managed by the Market Committee;
   • (b) sub- market yards managed by the Market Committee;\
   • (c) market sub-yard managed by the Market Committee;
   • (d) private market yards managed by a person, holding a licence under section 10 ;
   • (e) private market sub-yards managed by a person ,holding a licence under section 12 ;
   • (f) farmer-consumer market yards managed by the Market Committee;
   • (g) private farmer-consumer market yards managed by a person, holding a licence under section 11 ;
   • (h) electronic trading platforms.
2. (2) The State Government shall, as soon as possible after the issue of notification under Sections 4 and 5, by a notification, declare any ‘place’ in the delineated market area as principal market yard or sub-market yard or market sub-yard or farmer-consumer market yard, as the case may be, managed by a Market Committee, for the purpose of regulation of marketing of notified agricultural produce and livestock, expressly or impliedly in physical , electronic or other such mode, under this Act. Explanation: In this sub-section
3. (2) , the expression ‘place’ shall include any structure, enclosure, open space locality, street including warehouse/silos/pack house/cleaning, grading and packaging and processing unit vested in the Market Committee of the delineated market area.
4. (3) The State Government may, by notification, declare a ‘place’, licenced under section 70, to be private market yard, private market sub- yard, private farmer- consumer market yard, as the case may be, for marketing of notified agricultural produce and livestock, expressly or impliedly in physical, electronic or other such mode, under this Act. Explanation: In this sub-section (3), the expression ‘place’ shall include any structure, enclosure, open space locality, street including warehouse/silos/pack house/cleaning grading & packaging and processing unit vested in the person licenced for the purpose under this Act.

1. (1) The State Government may designate any existing market yard established under section 7
2. (2) as “Special Commodity Market Yard” or establish and notify any market yard as “Special Commodity Market Yard”after consideration of such aspects as throughput of particular agriculture produce and livestock and special infrastructure requirements therefore. It may be-
   • (i) fruits, vegetables and flower markets, including onion market, apple market, orange market and other such market;
   • (ii) cotton market;
   • (iii) medicinal and aromatic plants market;
   • (iv) livestock market including camel market, fish market, poultry market and other such market; and
   • (v) any other such markets.
3. (2) All provisions for and in relation to the Market Committee made under this Act

shall mutatis mutandis apply to the Market Committee established for “Special

Establishment and notification of “Market Yard of National Importance (MNI)” The State Government may designate and notify any existing market yard established under Section 7

1. (2) as “Market Yard of National Importance” or establish and notify any market as “Market Yard of National Importance” After consideration of such aspects as total throughput, value, upstream catchment area, down-stream number of consumers served and special infrastructure requirements therefor: Provided that the market yard handling not less than such annual tonnage or such annual value, as may be prescribed, may be considered for conferring the status as the “Market Yard of National Importance”.

Establishment of private market yard

1. (1) Subject to such reasonable conditions and such fee as may be prescribed, the Director or the Officer authorized by him may grant a licence to a person to establish a private market yard, for trading of notified agricultural produce and livestock.
2. (2) The private market yard licensee, or its management committee, by whatever name it is called, may register commission agents and other market functionaries to operate in the licenced private market yard.
3. (3) The private market yard licensee, or its management committee, may collect user charge on notified agricultural produce and livestock transacted in the private market yard, at the rate ad valorem not exceeding the rate as notified by the Government : Provided that no user charge shall be collected from agriculturist-seller.
4. (4) The private market yard licensee shall contribute, of such user charge collection and registration fee, to the separate “Revolving Marketing Development Fund” maintained by the Director at the rate in percentage at par with Market Committee.
5. (5) The Director will spend the money from such Fund under sub-section
6. (4) in development of common marketing infrastructure, skill development, training, research and pledge financing and such other activities as will aid in creating an efficient marketing system in the State/ Country.
7. (6) The private market licensee shall formulate a Standard Operating Procedure
   • (SOP) for conduct of business and activities ancillary thereto in the licenced private market yard.

1. (1) Subject to such terms and conditions and fee, as may be prescribed, the Director or the Officer authorized by him, may grant licence to a person to establish farmer-consumer market yard for marketing of specified agricultural produce in retail.
2. (2) Such farmer-consumer market yard may be established by a person by developing infrastructure, as may be prescribed, and at a place accessible to both farmers and consumers: Provided that the consumer shall not purchase more than such quantity of agriculture produce at a time in this market, as may be prescribed.
3. (3) The farmer-consumer market yard licensee may collect the user charge on the sale of agriculture produce from the seller and amount so realized shall be retained by farmer-consumer market yard licensee:

Declaring warehouse/ silos/ cold storage or other such structure or place as market sub-yard

1. (1) Save as otherwise provided in this Act, the State Government may, by notification declare warehouse/ silos/ cold storage or other such structure or place with infrastructure and facilities as maybe prescribed, to function as market sub-yard. Explanation: The expression ‘place’ under this sub-section shall include any structure, enclosure, open space, locality, street including pack house/cleaning grading and processing unit etc.
2. (2) The owner of such warehouse/ cold storage, or other such structure or ‘place’, as the case may be, desirous of declaration of such place as market sub-yard under sub-section (1), shall apply to the Director or an Officer authorized by him, in such form and in such manner and such fee; and also for such period but not less than three years, as may be prescribed.
3. (3) The licensee of such warehouse/ silos/ cold storage or other such structure or place, may collect user charge on notified agricultural produce transacted at the declared market sub-yard under section 12, at the rate ad valorem not exceeding the rate as notified by the state Government. Provided that no user charge shall be collected from agriculturist-seller.
4. (4) A declared market sub- yard licensee shall contribute, of such user charge collection, to the separate “Revolving Marketing Development Fund” maintained by the Director at the rate in percentage at par with Market Committee.

Direct marketing (wholesale direct purchase from farmers outside the market yard, sub-market yard, private market yard)

1. (1) Collection/aggregation centres in the proximity of the production areas may be set up by a person with infrastructure, as may be prescribed, with linkages to

made thereunder for marketing of notified agricultural produce.

1. (2) Notwithstanding anything contained under sub- section (1), direct wholesale purchase can also be carried out outside the principal market yard, sub- market yard, market sub-yard, private market yard by declaring the place of such

purchase, without establishment of any permanent collection/aggregation centre,

as may be prescribed.

1. (3) Direct marketing licensee shall have to maintain records and all accounts relating to daily trade transactions and shall submit monthly report, as may be prescribed, to the Licensing Authority.
2. (4) The Licensing Authority can seek any type of additional information from the direct marketing licensee; and can also inspect and issue direction relating to functioning of the such wholesale purchases and the activities incidental thereto.
3. (5) The direct marketing licensee shall be liable to pay one-fourth of the applicable market fee on wholesale purchases made. The such licensee shall deposit the due amount towards “Revolving Marketing Development Fund” maintained by Director for the month by 7 th day of the next month. The Fund will be utilized for the purposes and in the manner mutatis mutandis to Section 10
4. (5) of this Act.
5. (6) Notwithstanding anything contained in the Essential Commodities Act, 1955 and Control Orders issued thereunder or any other law for the time being in force, the provision of stock limit shall not be applicable on such direct marketing licensee purchasing the agricultural produce for processing/ export to the extent of his/ its annual capacity of processing/ export. However, in case any dispute arises between the provisions of this Act and Essential Commodities Act, 1955, the latter shall prevail.