Chapter VII REGULATION OF TRADING

1. (1) All notified agricultural produce including livestock shall ordinarily be sold in the principal market yards, sub-market yards and market sub-yards licenced under this Act or not, private market yards or at the electronic trading platforms : Provided that the notified agricultural produce including livestock may be sold at other places also to a licence holder especially permitted in this behalf under this Act.
2. (2) In relation to agricultural produce, nothing in the sub-section
3. (1) shall apply to the following sale and purchase where -
   • (i) sale is made by the producer himself to any person for his domestic consumption in quantity up to the limits prescribed under the Rules;
   • (ii) brought for sale by head load;
   • (iii) purchase and sale is made by a petty trader;
   • (iv) purchase is made by an authorized fair price shop dealer from the Food Corporation of India, "the State Commodities Trading Corporation" or any other agency or institution authorized by the Central or/ and State Government Administration for distribution of essential commodities through the public distribution system; and
   • (v) the transfer of such agricultural produce to a cooperative society for the purpose of securing an advance there from.
4. (3) In relation to livestock, nothing in the sub-section
5. (1) shall apply on the business of purchasing or selling of livestock not exceeding such value, as may be prescribed.
6. (4) The price of the notified agricultural produce including livestock, brought for sale into the principal market yards, sub-market yards , private market yards, market sub-yards shall be settled by tender bid or open auction including e-auction or any other transparent system and no deduction shall be made from the agreed price on any account whatsoever from the seller.
7. (5) Weighment or measurement or counting of all the notified agricultural produce including livestock so purchased shall be done by such a person and such system as is provided in the Bye-laws or at any other place specified for the purpose by the Market Committee.

1. (1) Except in the commercial transaction between two traders, any other person

who buys notified agricultural produce including livestock in the principal

market yards, sub-market yards and market sub-yards, shall execute an agreement in triplicate in such form, as may be prescribed in favour of the seller. One copy of the agreement shall be kept by the buyer, one copy shall be supplied to the seller and the remaining copy shall be kept in the record of Market Committee.

1. (2) (a)The price of the notified agricultural produce transacted in the principal market

yards, sub-market yards, private market yards, market sub-yards or at

e-platforms shall be paid on the same day to the seller or in the maximum the

licensee, on the same day itself.

1. (b) In case purchaser does not make payment under clause (a), he shall be liable to make additional payment at the rate of one percent, per day of the total price of the agricultural produce, payable to the seller within five days.
2. (c) In case the purchaser does not make payment with additional payment to the seller under clause
3. (a) and
4. (b) above, within five days from the day of such purchase, his licence shall be deemed to have been cancelled on the sixth day and he shall not be granted any licence or permitted to operate under this Act for a period of one year from the date of such cancellation.

1. (3) Commission agent shall recover his/its commission from his/ its principal trader at

the rate not exceeding two percent ad valorem on transacted non-perishable

agricultural produce; while in case of perishable agricultural produce, it shall not exceed four percent ad valorem on transacted produce, including all expenses as may be incurred by him in storage of the produce and other services rendered by him/ it:

Levy of market fee (single point levy of market fee)

1. (1) The Market Committee shall levy and collect market fee from buyer in respect of notified agricultural produce including livestock bought by such buyer in the principal market yard or sub-market yards or market sub-yards either brought from outside the State or from within the State, at such rate as may be notified but not exceeding two percent ad valorem on transacted produce in case of non-perishable agricultural produce and not exceeding one percent ad valorem in case of perishable agricultural produce and livestock: Provided that Market fee specified under this section shall not be levied for the second time, in whatever name it is called, i.e. cess, user charge, service charge, etc., in any principal market yard, sub-market yard, market sub-yard, private market yard, electronic trading platform within the State. Provided that market fee at applicable rate has already been paid on that notified agricultural produce in any principal market yard, sub-market yard, market sub-yard, private market yard, electronic trading platform of the State and the evidence to this effect has been furnished, by the concerned person that market fee has already been paid as aforesaid in the State. Provided further that in case of commercial transactions between traders, the market fee shall be collected and paid by the seller. Provided also in case buyer is not licensee and seller is farmer, the liability of payment of market fee shall be of commission agent, who will collect the market fee from buyer and deposit to the Market Committee.
2. (2) The Market Committee may levy and collect entrance fee on vehicles which may enter into market yards at such rate as may be specified in Bye-laws:

Levy of User charge by Market Committee

1. (1) Notwithstanding anything contained in this Act, the Market Committee may allow

trade even in those item of the agricultural produce including livestock which is/

are not notified for regulation under the Act or are not specified in the Schedule to the Act for regulation.

1. (2) The Market Committee may collect user charge, as prescribed in the Bye-laws, for allowing trade as provided under sub-section
2. (1) at the rate not exceeding two percent ad valorem in case of non-perishable transacted agricultural produce and not exceeding one percent ad valorem in case of perishable agricultural produce and livestock.
3. (3) Save as otherwise provided in this Act, Market Committee shall neither enforce regulation nor levy and collect applicable market fee on sale-transactions of fruits and vegetables taking place outside, designated APLMC jurisdiction, principal

market yard, sub-market yards and market sub-yard .

The State Government may, by notification and subject to such conditions and restrictions, if any, as may be specified therein, exempt in whole or in part any agricultural produce including livestock brought for sale or bought or sold in the principal market yards, sub-market yards and market sub-yards specified in such notification, from the payment of market fee for such period as may be specified therein. Any notification issued under this section may be rescinded before the expiry of the period for which it was to have remained in force, and on such rescission such notification shall cease to be in force.

1. (1) Subject to the provisions of this Act and Rules made in this behalf, every person who, in respect of notified agricultural produce including livestock, desires to operate in the principal market yard or sub-market yard or market sub-yard as commission agent, weighman, measurer, hammal (loader- unloader) or such other market functionary, except trader, shall apply to the Market Committee for grant or renewal of such licence in such form and manner as may be prescribed.
2. (2) The Market Committee or its Chairperson, if so authorized by the Market Committee may, on an application made under sub-section
3. (1) and after making such inquiries as it deemed fit, grant or renew the licence , or may refuse to grant or renew any such licence on the basis of one or more of the following reasons-
   • (i) The applicant is minor or not bonafide.
   • (ii) The applicant has been declared defaulter under the Act or Rules made thereunder and Bye-laws.
   • (iii) The applicant has been found guilty under the Act.
   • (iv) Any dues relating to Market Committee and/or Board and/or department/ directorate of agricultural marketing are outstanding against the applicant.
   • (v) Any other reasons, as may be prescribed.
4. (3) The Market Committee or its Chairperson, if so authorized under sub-section
5. (2) shall dispose off the application received under sub-section
6. (1) within twenty days from such date when application is complete in all respects.

Explanation: The Market Committee shall, on scrutiny of application and the documents annexed therewith within five working days from the date of its receipt, grant/ renew the licence within twenty working days from such date when application is found complete in all respects; or may, after recording the reason in writing therefor , refuse to do so.

1. (4) On expiry of a period of twenty working days as under sub-section (3), if the application has not been disposed off, it shall be deemed that licence has been granted or renewed, as the case may be.
2. (5) The Market Committee or its Chairperson, if so authorized may, for reasons to be recorded, specifying the breach of any provision of Act/Rules/Bye-laws, instructions, orders, suspend or cancel the licence ,granted under this section, by passing a speaking order:

Grant / Renewal of unified single trading licence

1. (1) There shall be a single licence applicable to the whole of the State, for the trader to be granted/ renewed by the Director or the Officer authorized by him in such manner and in such form, as may be prescribed, to operate as trader in any principal market yard, sub-market yard, market sub-yard private market yard and sub-yard, e-trading platform or any other space identified for the purpose, in the State. The existing trader licences granted by the Market Committees shall be converted into State wide single trader licence by the Director or the Officer authorized by him, within six months from the date of commencement of the State Agricultural Produce and Livestock Marketing (Promotion and Facilitation )Act, 2017. Until then, the existing trader licences granted by the Market Committees are deemed to have been the State wide single trader licences. Explanation: Private market licensee or other such licensee or its management committee may, register the unified single trading licence holder issued by Director or the Officer authorized by him, to allow to operate in such market yards.
2. (2) Any person desirous of obtaining or renewing a licence under sub-section (1) as trader, shall apply to the Director or the Officer authorized by him in Form with reasonable fee, as may be prescribed.
3. (3) Subject to provisions of this Act and the Rules made in this behalf, the Director or the Officer authorized by him, on application under sub-section (2), after making such inquiries as deemed fit , may grant or renew the licence in the form and for such a period, as may be prescribed: Provided that notwithstanding anything contained in this Act and the Rules made thereunder there shall be no consideration of domicile, compulsory requirement of purchase /collection centre and minimal quantity for grant/ renew of such licence. Provided further that such licence granted or renewed shall entail to the licensee to carry out trade of any form i.e. primary or secondary or whatsoever, without any discrimination.
4. (4) The licence issued by the Director or the Officer authorized by him under this section shall bear Unicode, as may be prescribed.

1. (1) The Director or the Officer authorized by him may, after such inquiry as he deems fit to make and after giving, in the prescribed manner, the licensee a reasonable

opportunity of being heard , suspend or cancel a licence issued under section 65

on any of the following grounds:

1. (a) that, the licence has been obtained through willful misrepresentation or fraud;
2. (b) that, the licensee himself or in collusion with other licensees commits any

produce in any type of market and in consequence whereof, the marketing of

notified agricultural produce has been obstructed, suspended or stopped ;

1. (c) that, the licensee is found to have contravened any of the provisions of this Act or the Rules or Bye-laws made thereunder ;
2. (d) that, the licensee has been convicted of an offence punishable under this Act or Rules or regulations made thereunder ;
3. (e) that, the licensee has become insolvent; of that, the licensee incurs any disqualification on grounds prescribed in the rules/ regulation / bye-laws made thereunder.

1. (2) Having been licence suspended/cancelled under this section, the holder of such

licence shall forthwith produce the same in the office of the Director or the Officer

authorized for being endorsed in the prescribed manner and shall not be entitled to any claim on account of such suspension/cancellation any compensation or refund

of the whole or any part of the licence fee or any of the other money.

1. (1) Notwithstanding anything contained in this Act, the State Government may allow holder of unified single trading licence bearing Unicode, issued by any other State Government to undertake trade transaction within its geographical jurisdiction on e-platform or any other format including physical that may be in operation, as trader, as may be prescribed in Rules/ Bye-laws made under this Act.
2. (2) Such licensee shall be liable to pay the market fee and other marketing charges at

the rate applicable in the State, where trade transaction has taken place, in the

manner as may be prescribed.

1. (3) In case of contravention of any of the provisions of this Act/ Rules/ Bye-laws or instructions or orders, made thereunder the Director/ Managing Director/ Market

Committee shall, after giving an opportunity to be heard, blacklist such licensee

for trading purpose only within their respective jurisdiction, when a contravention has occurred, for a certain period or forever based on the gravity of breach/violation of provisions of this Act/ Rules/ Bye-laws or instructions or orders.

Explanation: The expression 'blacklisting' for a certain period to be deemed tobe

suspended for such a period in the jurisdiction as under sub-section (3), while 'forever' deemed to have been cancelled in the jurisdiction as under sub-section (3).

1. (4) The Director/ Managing Director/ Market Committee of the respective jurisdiction,

Grant/Renewal of licence for private, farmer-consumer market yard and market sub-yard

1. (1) Any person who, under Section 10, desires to establish private market yard, or under Section 11, desires to establish farmer-consumer market yard, or under

section 12 is desirous of such a place being declared as market sub -yard, shall

apply to the Director or the Officer authorized by him for grant or renewal of licence, as the case may be, in such form and in such manner; and also for such period but not less than three years, as may be prescribed.

1. (2) An application for grant or renewal of licence, as the case may be, for private

market yard or farmer-consumer market yard or market sub -yard under section

68 (1), shall be accompanied with such reasonable licence fee and security/ bank guarantee, as may be prescribed.

1. (3) An application received under sub-section
2. (1) for grant or renewal of licence may

be accepted or rejected for the reasons to be recorded in writing by the Licensing

Authority:

1. (i) that, the applicant is a minor or not bona fide;
2. (ii) that, the applicant has been declared defaulter under the Act and Rules and Bye-laws made thereunder;
3. (iii) that, any dues relating to Market Committee and/or Board and/or department/ directorate of Agricultural marketing are outstanding against the applicant;
4. (iv) that, the concerned authority is Satisfied that the applicant does not possess

market yard or farmer-consumer market yard; and/ or

1. (v) for any other reasons, as may be prescribed.

1. (4) The licence granted or renewed under this section shall be subject to such terms and conditions, as may be prescribed; and the licensee shall be bound to follow the terms and conditions of the licence as maybe prescribed.

Suspension or Cancellation of licence granted/renewed under Section 73

1. (1) Subject to the provisions of section 68, the Licensing Authority, as the case may be, may for the reasons to be communicated to the licence holder in writing, suspend or cancel the licence, if:
   • (a) the licence has been obtained through wilful misrepresentation or fraud; and/or
   • (b) the holder of licence or its representative or anyone acting on his behalf with his expressed or implied permission, commits a breach of any of the Rules, regulations and terms or conditions of licence; and/or
   • (c) the holder of licence himself or in combination with other licence holder commits any act or abstains from carrying on his normal business in the market area with the intention of wilfully obstructing, suspending or stopping the marketing of notified agricultural produce; and/ or
   • (d) the holder of the licence has become insolvent; and/or
   • (e) the holder of the licence incurs any disqualification, as may be prescribed; and/or
   • (f) the holder of the licence is convicted of any offence under this Act.
2. (2) No licence shall be suspended or cancelled under this section without giving a reasonable opportunityof being heard to its holder.
3. (3) Subject to the provisions of this section, the Licensing Authority shall communicate to the licence holder by speaking order to suspend or cancel Its licence granted or renewed under section 68.

1. (1) Any person, including a Farmers' Cooperative, Farmers' Producer Organisation
   • (FPO) and Processor/Exporter, under section 13, desires to purchase agricultural produce directly from farmers outside the principal market yard, sub-market yard, market sub-yard, private market yard, shall apply to the Director/ Managing Director or the Officer authorized by him for grant or renewal of licence, as the case may be, in such form and in such manner; and also for such period, as may be prescribed.
2. (2) An application for direct marketing shall accompany such reasonable licence fee and security/bank guarantee, as may be prescribed.
3. (3) The application received under section 70
4. (1) for grant or renewal of licence may be accepted or rejected in the cause and manner mutatis mutandis to Section 68(3).
5. (4) A direct marketing licence granted or renewed under this section shall be subject to such terms and conditions, as may be prescribed; and the licensee shall be bound to follow the terms and conditions of the licence as may be prescribed.

Suspension or Cancellation of direct marketing licence

the cause and manner mutatis mutandis to section 69.

summary manner within thirty days, after giving the parties a reasonable opportunity of being heard.

1. (1) Any person aggrieved by the order of the Director or the Officer authorized by him, passed under Section 57,58, and 72, as the case may be, may prefer an appeal to state Government or the officer authorized by it, in the form and manner as prescribed, within thirty days from the date of receipt of such order. The Appellate

Authority shall dispose of the appeal within thirty days, after giving the parties

a reasonable opportunity of being heard.

1. (2) Any person aggrieved by the order of the Market Committee or management committee of private market yard, farmer-consumer market yard, market sub-yard, electronic trading platform may prefer an appeal to the Director or the Officer authorized by him, in the form and manner mutatis mutandis to sub-section (1),

within thirty days from the date of receipt of such order. The Appellate Authority

shall dispose of the appeal within thirty days, after giving the parties a reasonable opportunity of being heard.

1. (3) Save as provided in section 73(1), the appeal with respect to inter-State trade on e- platform or any other such platform under section 58, will be in accordance with the provisions to be provided under any law constituting the Authority.
2. (4) The Appellate Authority, if it considers it necessary so to do, grant a stay on the order appealed against for such period as it may deem fit.
3. (5) The order passed in the appeal by the Appellate Authority under this section shall be final and binding on all parties.

Registration of wholesale adhoc buyer

1. (1) Any person desirous of wholesale buying either from the market-yard or from outside the market-yard, on day to day basis for own consumption even without valid licence granted under section 70, may register with the concerned Market Committee , in the form and in the manner , as may be prescribed:
   • (a) Such buyer will specify the place and day of purchase while making the registration; or afterward before purchase;
   • (b) In case of such buying undertaken in the market yard , the buyer shall be liable to pay Market fee at the applicable rate to the Market Committee and on buying undertaken outside the market yard, the buyer shall pay one-fourth of the applicable market fee to the Market Committee: Provided that such wholesale purchases cannot be made mo than three times in a month across the State

1. (1) No Civil Court shall have jurisdiction to settle, decide or deal with an question or to

determine any matter which is by under this Act required to be settled, decided or

dealt with.

1. (2) No court shall take cognizance of an offence under this Chapter, except upon a

complaint by the Director or Managing Director or by any other Officer

authorized by him in this behalf.