Alteration of market area and of items of regulated agricultural produce.-

1. Short title, extent and commencement.- (1) This Act may be called the

2[Karnataka] Agricultural Produce Marketing

3[(Regulation and development)] Act, 1966.

1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 01.11.1973.

³ Substituted by Act 23 of 2007 w.e.f. 16.08.2007.

2. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 01.11.1973.

1. (2) It extends to the whole of the 1[State of Karnataka.]
2. (3) It shall come into force on such 1[date] as the State Government may, by notification, appoint.

1. Act came into force on 01.05.1968 by notification. The text of the notification is at the end of the Act

2. Definitions:- In this Act, unless the context otherwise requires,-

1[(1)“Agricultural produce” means the produce or goods specified in the Schedule]

¹ Substituted by Act 17 of 1980 w.e.f. 30.6.1979

1[(2)“agriculturist” means a person cultivating any agricultural land who is an occupant of such land, or a tenant of an occupant: Explanation.- For purposes of this clause, the expressions 'occupant' and 'tenant' shall have the meaning assigned to them in the

2[Karnataka] Land Revenue Act, 1964. (

2[Karnataka] Act 12 of 1964);]

¹ Substituted by Act 3 of 1970 w.e.f. 17.10.1969

2. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 01.11.1973.

¹ Inserted by Act 16 of 1991 w.e.f. 1.8.1991 by notification .

1[(2A) "Agricultural Co-operative Processing Society" means an agricultural Co-operative Processing Society registered or deemed to have been registered under the Karnataka Co- operative Societies Act, 1959 for the purpose of processing of agricultural produce in a market area;]

1[(2B)"Backward Classes" measn such class or classes of citizens as may be classified as category 'A' and 'B' and notified by the State Government from time to time for the purpose of reservation of seats in the market committee."]

¹ Inserted by Act 13 of 2002 w.e.f. 11.4.2002

1. (3) “Board” means the 1[Karnataka State Agricultural Marketing Board] established under this Act;

1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 01.11.1973.

1. (4) “broker” means an agent who in consideration of a commission, fee or reward, merely negotiates and brings about a contract for the purchase or sale of notified agricultural produce on behalf of his principal, but does not receive, deliver, transport, pay for the

purchase of, or collect the payment for the sale of, the notified agricultural produce;

1[(5) "Buyer" or "Purchaser" means a person, who himself or on behalf of any other person or agent buys or agrees to buy notified agricultural produce in the market area.]

¹ Substituted by Act 23 of 2007 w.e.f. 16.08.2007.

1. (6) “bye-laws” means bye-laws made under this Act; 1[(6A) "cattle " includes buffalo, bullock, cow, 2[ox, goat, sheep and their young] ;]

² Substituted by Act 16 of 1991 w.e.f. 1.8.1991

1 . Inserted by Act 35 of 1986 w.e.f. 17.6 .1986

1[(7) x x x]

¹ Omitted by Act 35 of 1986 w.e.f. 17.6.1986

1[(8) “commission agent” means a person who in the ordinary course of business makes or offers to make a purchase or sale of agricultural produce on behalf of the owner or seller or purchaser or such agricultural produce for commission;]

¹ Substituted by Act 35 of 1986 w.e.f. 17. 6.1986

1. (9) “commodity” means any kind of agricultural produce meant for sale; 1[(9-A) “Contract farming” means farming by an individual agriculturist or association of

in the agreement. (9-B) “Contract farming Agreement” means the agreement made for Contract farming

between a Contract farming producer and contract farming sponsor as may be specified in

the agreement.]

¹ Inserted by Act 23 of 2007 w.e.f. 16.08.2007.

2[

1[(10) "Co-operative Marketing Society" means a Co-operative Marketing Society registered or deemed to have been registered under the Karnataka Co-operative Societies Act, 1959 for the purpose of marketing of agricultural produce in a market area;] ]

¹ Omitted by Act 35 of 1986 w.e.f. 17.06.1986.

² Inserted by Act 16 of 1991 w.e.f. 1.8.1991

1. (11) “delivery” means voluntary transfer of possession from one person to another;
2. (12) “Deputy Commissioner” includes any officer subordinate to the Deputy Commissioner not below the rank of a Tahsildar authorised by the State Government by notification to exercise the powers and perform the functions of the Deputy Commissioner under this Act in respect of any market area within the territorial jurisdiction of such officer;

1[(12A) "Director of Agricultural Marketing" means the officer appointed by the State

Government as such and includes

2[the Commissioner of Agricultural Marketing or] any

other officer or officers empowered by the State Government, by notification to exercise or

¹ Inserted by Act 35 of 1986 w.e.f. 17.6.1986

² Inserted by Act 23 of 2007 w.e.f. 16.08.2007

perform such of the powers or functions of the Director of Agricultural Marketing under the provisions of this Act or the rules as may be specified in such notification;]

1. (13) “exporter” means a person other than a producer who exports goods or causes goods to be exported on one‟s own account or as agent of another person, from the market area outside such area for the purpose of selling, processing, manufacturing or for any other

purpose except for the purpose of one‟s own domestic consumption, but shall not include a

public carrier;

1[x x x] ;

¹ Omitted by Act 35 of 1986 w.e.f. 17.6.1986

1[(13-A) “E-commerce platform” means an online platform for facilitating licensed

¹ Inserted by Act 19 of 2025 w.e.f. 25.03.2025

traders under the Act to sell market fee suffered notified agricultural produce to the licensed retail traders in the market area for sale to consumers for domestic consumption and not for subsequent sale or processing and shall also mean an online platform for farmers to pay by using e-payment method.]

1. (14) “goods” means any kind of notified agricultural produce; 1[(14A) “Government” means the State Government.] 2[(14B)] "importer" means a person who imports or causes goods to be imported on his own account or as an agent for another person from outside the market area into a market area for the purpose of selling, processing, manufacturing or for any other purpose

¹ Inserted by Act 23 of 2007 w.e.f.16.08.2007

¹ Inserted by Act 35 of 1986 w.e.f. 17.6.1986

² Renumbered by Act 23 of 2007 w.e.f.16.08.2007

except for one's own domestic consumption, but shall not include a public carrier;]

1. (15) “insolvent” means a person who ceases to pay his debts in the ordinary course of business or 1[cannot pay his debts in respect of financial transactions pertaining to market functionaries in the Agricultural Produce Marketing Committee] as they become due, whether he has committed an act of insolvency or not;

¹ Substituted by Act 18 of 2010 w.e.f.16.04.2010.

1[(16) x x x]

¹ Omitted by Act 16 of 1991 w.e.f. 1.8.1991

;

1[(17) x x x]

¹ Omitted by Act 17 of 1980 w.e.f. 3.11.1979

1. (18) “market” means any notified area declared 1[or deemed to be declared] to be a market under 2[this Act] ; 1[(18-A) "Marketing" means buying selling importing, exporting, grading, processing, storage, transport, branding, packaging, market information and channels of distribution and includes all activities involved in the production of notified agricultural produce commencing from the stage of harvest till such notified agricultural produce reach the consumers ultimately.]
2. (19) “Market area” means any area declared to be a market area under section 4; 1[(19A) "market charges" means all charges in connection with the handling of agricultural produce such as the commission of commission agents, brokerage, remuneration for weighment, loading, unloading, cleaning, sorting, counting, sieving and

¹ Inserted by Act 19 of 1969 w.e.f. 1.5.1968

² Substituted by Act 19 of 1969 w.e.f. 1.5.1968

¹ Substituted by Act 23 of 2007 w.e.f. 16.8.2007.

dressing of agricultural produce;]

¹ Inserted by Act 35 of 1986 w.e.f. 17.6.1986

1. (20) “Market committee” or “committee” means a market committee constituted for a market area under this Act;
2. (21) “market functionary” or “functionary” includes a broker, a commission agent, an exporter, a ginner, an importer, a presser, a processor, a stockiest, a trader, 1[warehouse service provider] and such other person as may be declared under the rules or the bye- laws to be a market functionary;
3. (22) “market sub-yard” means a specified place declared 1[or deemed to be declared] to be a market yard under 2[this Act] ;
4. (23) “market yard” means a specified place declared 1[or deemed to be declared] to be a market yard under 2[this Act] ;
5. (24) “market year” means the year commencing on the first day of 1[April] ;
6. (25) “member” means a member of a market committee;
7. (26) “misconduct” in relation to a market functionary shall include any conduct of such functionary which is contrary to any of the provisions of this Act, the rules, the bye-laws or standing orders or is inconsistent with the objects and purposes of this Act;
8. (27) “notification” means a notification published in the official Gazette;
9. (28) notified agricultural produce” means any agricultural produce which the State Government has by notification issued under sections 4 and 5 declared as an agricultural produce the marketing of which shall be regulated in the market area;
10. (29) “over-trading” in relation to a trader means,-
    • (i) buying goods on credit to an extent that the aggregate amount payable to the commission agents 1[or sellers] in the market area at any time exceeds the limit up to which he is permitted to remain indebted to the commission agent 1[or sellers] according to the bye-laws with regard to the amount of security he has deposited with or the bank guarantee he has furnished to the market committee;
    • (ii) trading in such a manner as not to be able to pay the amounts due or deliver the goods to the persons entitled to them in respect of the agricultural produce, on the due dates;
11. (30) “person” includes a firm and 1[a Joint Hindu Family, a company or firm or association or a body of individuals, whether incorporated or not] ;
12. (31) “prescribed” means prescribed by rules made under this Act: 1[(31-A) “Private Market Yard” means such place other than the market yard, market sub yard and sub market yard in the market area where infrastructure has been developed,

¹ Inserted by Act 19 of 2025 w.e.f. 25.03.2025

¹ Inserted by Act 19 of 1969 w.e.f. 1.5.1968

² Substituted by Act 19 of 1969 w.e.f. 1.5.1968

¹ Inserted by Act 19 of 1969 w.e.f. 1.5.1968

² Substituted by Act 19 of 1969 w.e.f. 1.5.1968

¹ Substituted by Act 16 of 1991 w.e.f. 1.4.1992

¹ Inserted by Act 16 of 1991 w.e.f. 1.8.1991

¹ Substituted by Act 35 of 1986 w.e.f. 17.6.1986

managed and controlled by a person for marketing of notified agricultural produce holding a

license for this purpose under this Act ]

¹ Inserted by Act 23 of 2007 w.e.f. 16.8.2007.

1. (32) “process” means any one of a series of treatments to which raw agricultural produce is subjected to make it fit for 1[use or consumption] ;
2. (33) “processor” means a person who processes notified agricultural produce by mechanical means; 1[(33-A) "Processing" means any one or more of a series of treatments relating to powdering, crushing, paste making, decorticating, cleaning, ripening dehusking, parboiling, polishing, ginning, pressing, curing or any other manual, mechanical, chemical or physical treatment to which raw notified agricultural produce or its product is subject to make it fit for use or consumption.]
3. (34) “producer” means who produces notified agricultural produce on one‟s own account,-
   • (i) by one‟s own labour, or
   • (ii) by the labour of any member of one‟s family, or
   • (iii) under the personal supervision of oneself or any member of one‟s family by hired labour or by servants on wages payable in cash or kind but not in share of the produce; Explanation: - For the purposes of this clause, a producers‟ society shall be deemed to be a producer;

¹ Substituted by Act 35 of 1986 w.e.f. 17.6.1986

¹ Inserted by Act 23 of 2007 w.e.f. 16.8.2007

1[(35 x x x]

¹ Omitted by Act 35 of 1986 w.e.f. 17.6.1986

1. (36) “ Registrar of Co-operative Societies” includes any officer subordinate to the Registrar of Co-operative Societies in 1[Karnataka] authorised by him; 1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973 1[(36-A) "Registration" means registration made under this Act. (36-B)"Revolving Fund" means the Revolving Fund established under section 64B for the purpose of implementation of Floor Price Scheme.] 1. Sub-sections (36A) and( 36B)inserted by Act 23 of 2007 w.e.f. 16.8.2007 1[(37) 'Retail Sale' means a sale of such quantity of notified agricultural produce as the market committee may by bye-laws determine subject to the prescribed maximum limit on which the market fee has already been levied and collected in the concerned market area, to a consumer for domestic consumption and not for subsequent sale or processing," 2[(37A) 'Retail Trader' means a person who is engaged in retail sale of any notified agricultural produce on which market fee has already been levied and collected in the concerned market area and holds in stock at a time not exceeding such quantity of notified agricultural produce 3[and classify the retail trader for the purpose,] as the State

Government may by notification specify from time to time.]

]

(37B) "rural shandy" means a place where retail sale of notified agricultural produce takes place, and where no market functionary operates in accordance with the provisions of this Act, the rules, the bye-laws and standing orders of the Market Committee;]

¹ Inserted by Act 16 of 1991 w.e.f. 1.8.1991.

² Substituted by Act 22 of 2004 w.e.f. 17.5.2004.

³ Inserted by Act 19 of 2025 w.e.f. 25.03.2025

1. (38) “rules” means rules made under this Act; 1[(38A) "Schedule " means the Schedule to this Act;] 1[(38B) "Scheduled Castes and Scheduled Tribes" means the Scheduled Castes and Scheduled Tribes specified in respect of Karnataka in the Constitution (Scheduled Castes) Order, 1950 and the Constitution (Scheduled Tribes) Order, 1950 for the time being in force."]

¹ Inserted by Act 17 of 1980 w.e.f. 30.6.1979

¹ Inserted by Act 13 of 2002 w.e.f. 11.4.2002

1[(39) "Secretary" means the Secretary of the Market Committee and includes, Additional

Secretary or Assistant Secretary of the market committee and any other officer who is authorised by the Director of Agricultural Marketing to exercise the powers and perform the functions of the Secretary;]

¹ Substituted by Act 16 of 1991 w.e.f. 1.8.1991

1. (40) “seller” means a person who sells or agrees to sell goods;
2. (41) “solvent” means a person who is not an insolvent;
3. (42) “standing order” means a standing order made under section 151;
4. (43) “stockiest” means a person other than licensed commission agent who stocks the goods belonging to other persons, and includes a warehouseman;
5. (44) “sub-committee” means a sub-committee of a market committee;
6. (45) “sub-market” means a specified area declared 1[or deemed to be declared] to be a sub-market under 2[this Act] ;
7. (46) “sub-market yard” means a specified place declared 1[or deemed to be declared] to be a sub-market yard under 2[this Act] ; 1[(46A) “Spot Exchange” means an exchange for trading of notified agricultural produce through electronic media licenced under section 131D.] 1[(47) x x x]
8. (48) “trader” means a person who buys notified agricultural produce either for himself or as an agent of one or more persons for the purpose of selling, processing, manufacturing or

¹ Inserted by Act 19 of 1969 w.e.f. 1.5.1968

² Substituted by Act 19 of 1969 w.e.f. 1.5.1968

¹ Inserted by Act 23 of 2007 w.e.f. 16.8.2004

¹ Omitted by Act 16 of 1991 w.e.f. 1.8.1991

for any other purpose, except for the purpose of domestic consumption;

1. (49) “vehicle” includes a boat or other vessel or a conveyance of any kind;
2. (50) “warehouse” means any building, structure or other protected enclosure which is or may be used for the purpose of storing agricultural produce being goods on behalf of the depositors but does not include cloak rooms attached to hotels, railways stations, the premises of other public carriers and like; 1[(50-A)“Warehouse service provider” means a person, firm, company who makes or provides services for buying and selling of notified agricultural produce in a notified warehouse and collects service charges for the same.]
3. (51) “weighment” includes counting or measurement;
4. (52) “yard” includes the market yard, the market sub-yard and the sub-market yard.

¹ Inserted by Act 19 of 2025 w.e.f. 25.03.2025

3. Notification of intention of regulating the marketing of specified agricultural produce in specified area.- (1) The State Government may, by notification, declare its intention of regulating the marketing of such agricultural produce, in such area, as may be

specified in the notification. The notification may also be published in Kannada in a newspaper circulating in such area.

1. (2) The notification shall state that any objections or suggestions which may be received by the State Government within such period as shall be specified in the notification, not being less than thirty days, will be considered by the State Government. 4. Declaration of market area and of regulation of marketing of specified agricultural produce therein.- After the expiry of the period specified in the notification issued under section 3, and after considering such objections and suggestions as may be received before such expiry, the State Government may, by another notification, declare the area specified in the notification issued under section 3 or any portion thereof to be a market area and that the marketing of all or any of the kinds of agricultural produce specified in the notification issued under section 3 shall be regulated under this Act in such market area. A notification under this section may also be published in Kannada in a newspaper circulating in such area. 1[Provided that a market area shall not be less than a taluk and more than a district: Provided further that if on the date of commencement of the Karnataka Agricultural Produce Marketing (Regulation) and Certain Other Laws (Amendment) Act, 1991, any market area is more than a district or less than a taluk such market area shall be altered or market committees of such market area shall be amalgamated so that the market area shall not be more than a district or less than a taluk and the provisions of sections 5, 142 and 144 shall, mutatis mutandis apply for such alteration of limits and amalgamation.]

¹ Inserted by Act 16 of 1991 w.e.f. 1.8.1991

Subject to the procedure specified in sections 3 and 4 , the State Government may, at any time by notification, exclude from any market area, any area or include therein an additional area, or may declare that the regulation of the marketing of any agricultural produce in any market area shall cease, or that the marketing of any agricultural produce (hitherto not regulated) shall be regulated in such market area.