Chapter XI STATE AGRICULTURAL MARKETING BOARD

(1) With effect from such date as the State Government may by notification appoint in this behalf, there shall be established for the State of

1[Karnataka] a Board called the

1[Karnataka State Agricultural Marketing Board] .

1. (2) The Board shall be a body corporate having perpetual succession and a common seal and subject to such restrictions as are imposed by or under this Act or any other enactment, shall be vested with the capacity of suing or being sued in its corporate name, of acquiring, holding and disposing of, moveable or immoveable property, of entering into contracts, and of doing all things necessary, proper or expedient for the purposes for which it is constituted. 1. Adapted by the Karnataka Adaptations of Laws order 1973 w.e.f. 1.11.1973

(1) The Board shall consist of the following members namely:-

1. (i) The Minister of the State in charge of agricultural produce marketing who shall be the ex-officio Chairman of the Board;
2. (ii) One person from each revenue district of the State who shall be a Chairman of a market committee in the district elected in the prescribed manner by an electorate consisting of the Chairmen of all market committees in such district; 2[(iii) the Secretary to Government, Department of Co-operation or his nominee, ex- officio;
3. (iv) the Secretary to Government, Department of Agriculture or his nominee, ex- officio;
4. (v) the Director of Agricultural Marketing;] Provided that where in any revenue district there are only two market committees and both the Chairmen are contesting candidates for election from such district, the person to represent the market committees on the Board shall be decided by lot to be drawn by the Returning Officer: Provided further that where in any revenue district there is only one market committee, the Chairman of such committee shall be the member of the Board.

1. (2) The Board shall elect a Vice- Chairman from among the elected members.
2. (3) The 1[Director of Agricultural Marketing] shall ex-officio be the 3[Managing Director] of the Board.

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

² Inserted by Act 16 of 1991 w.e.f.1.3.1992

³ Substituted by Act 16 of 1991 w.e.f.1.3.1992

1[Director of Agricultural Marketing] shall publish in the prescribed manner the names of the members elected under clause (ii) of sub-section (1) of section 101.

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

The provisions of sections 20 to 25 (both inclusive) shall mutatis mutandis be applicable for the determination of the validity of an election under clause (ii) of sub-section (1) of section 101, subject to the modification that the judicial officer empowered to determine the dispute shall be the District Judge having jurisdiction over the district concerned.

A member elected under clause (ii) of sub-section (1) of section 101 shall cease to be a member of the Board if he ceases to be a member of the electorate of Chairmen of the market committees concerned.

If the seat of any elected member becomes vacant on account of resignation or death or cessation of membership under section 104, the vacancy shall be filled up as soon as may be after the occurrence of such vacancy by the election of another person thereto.

*106. Term of office of the members of the Board.- The elected members of the Board shall, save as otherwise provided in this Act, hold office for a period of

1[five years.]

• • See foot note below section 61 *106A.
• • See footnote below section 61

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

Chairman of the Board shall be as specified by the regulations: Provided that till regulations are made under this section, the provisions relating to powers and duties of the Chairman and the Vice- Chairman of the Board, before the commencement of the Karnataka Agricultural Produce Marketing (Regulation) (Amendment)

Act, 1986 shall apply.]

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

The Boad shall make regulations not inconsistent with this Act or with any rules made thereunder with respect of the conduct of its business: Provided that till regulations are made under this section the provisions relating to conduct of business of the Board before the commencement of the Karnataka Agricultural

Produce Marketing (Regulation) (Amendment) Act, 1986 shall apply.]

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

¹ Substituted by Act 14 of 1976 w.e.f .24.1.1976

year make a grant to the Board of an amount equal to one per cent of the gross receipts of the market committees during that year by way of market fee and licence fee.]

*109A.

• • See footnote beow section 61

(1) The amounts paid under sections 92 and 109 and all other receipt of the Board

1[, including loans raised] shall be credited to a fund called the Marketing Development Fund.

1. (2) All expenditure incurred by the Board shall be defrayed out of the said fund.

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

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

State Government and subject to such conditions as may be prescribed, borrow any sum required for the purpose of this Act.]

Marketing Development Fund shall be utilised by the Board for the following purposes, namely:-

1. (i) grading and standardisation of agricultural produce;
2. (ii) general improvement of the regulation of marketing in the State;
3. (iii) giving aid to financially weak 1[or needy] market committees in the form of loans and grants;
4. (iv) acquisition or construction of buildings for performing the duties of the Boards;
5. (v) payment of the pay, pensions, leave allowances, gratuities, compensation for injuries resulting from accidents, compassionate allowances, contributions towards leave allowances, pensions or provident fund of the officers and servants employed by the Board;
6. (vi) travelling and other allowances to the members of the Board;
7. (vii) propaganda and publicity on matters relating to regulated marketing of agricultural produce;
8. (viii) meeting any legal expenses incurred by the Board;
9. (ix) imparting education in regulated marketing of agricultural produce; 1[(ixa) general improvement of the facilities for the transport of notified agricultural produce to the market yard, market sub-yard or sub-market yard, and the marketing there of.]
10. (x) training the officers and staff of the market committees in the state; 2[(xa) providing technical and administrative assistance to market committee including execution of works;] .
11. (xi) any other purpose of general interest to regulated marketing of agricultural produce.

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

² Inserted by Act 35 of 1986 w.e.f.17.6.1986

(1) The Board shall, subject to the provisions of this Act, rules and regulations made thereunder, discharge the following functions and shall have power to do all such acts as may be necessary or expedient for carrying out its functions, namely:-

1. (a) to advise on matters referred to it by the State Government;
2. (b) to provide legal assistance to the market committee;
3. (c) to assist in the functioning of the market committee including in respect of programmes undertaken by the market committees for the development of markets;
4. (d) to undertake State level planning of the development of agricultural produce marketing;
5. (e) to give advise to market committees in general or any market committee in particular with a view to ensuring improvement in the functions thereof;
6. (f) to co-ordinate functioning of all the market committees with the help of the information service obtained by both National and International Markets:
7. (g) to arrange for safety insurance on the life of farmers and if necessary to contribute towards the e premiums payable in respect of all agriculturists in the State;
8. (h) to assist the market committees in the preparation of site plans, estimates and development of market yards:
   • (i) to arrange or organise seminars, workshops or exhibitions on subjects relating to agricultural marketing: 3[(j) to set up an Agricultural Produce Marketing Standards Bureau for the purpose of promotion of grading, standardization and quality certification of notified agricultural produce in the State.] 5[(j-a) to undertake procurement operations of notified agricultural produce under Floor Price Scheme and Minimum Support Price Scheme entrusted by the Government from time to time and to take up commercial operation in respect of the said agricultural produce; and] 4[(k)] such other functions as may be specified by regulations.] * 1[(2) It shall be the duty of the Board to advise on any matter referred to it by the State Government.]
     • • See footnote below section 61

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

2. ubstituted by Act 16 of 1991 w.e.f.1.4.1996 by notification. The text of the notification is at the end

³ Inserted by Act 23 of 2007 w.e.f. 16.8.2007.

⁴ Renumbered and Inserted by Act 23 of 2007 w.e.f.16.8.2007.

of the Act.

⁵ Inserted by Act 21 of 2024 w.e.f. 07.03.2024.

Save as provided in this Chapter, the provisions of this Act and the rules applicable to a market committee shall mutatis mutandis be applicable to the Board.