Licensing of Traders, Commission Agents, Processors, Direct Purchase Centres, Private Markets etc., and Regulation of Trade.

1[7. Licensing of Traders, Commission Agents, Processors, Direct Purchase Centres, Private Markets etc., and Regulation of Trade.-- (1) No person shall, within a notified area, set up, establish or use, or continue or allow to be continued, any place for the purchase, sale, warehousing, storage, weighment, curing, pressing or processing of any notified agricultural produce or products of livestock or for the purchase or sale of livestock except under and in accordance with the conditions of a licence granted to him under this section: Provided that the market committee or the Director of Marketing may exempt from the provisions of this subsection any person who carries on the business of purchasing or selling any notified agricultural produce, livestock or products of livestock not exceeding such value as may be prescribed: Provided further that a person selling notified agricultural produce, livestock or products of livestock grown, reared or produced by him, shall be exempted from the provisions of this sub-section, but, the Government may, for special reasons to be recorded in writing, withdraw such exemption in respect of any such person: Provided also that the market committee or Director of Marketing or the Officer authorized by him as the case may be shall not renew the license granted under this section, unless the licensee pays all arrears of amounts including rental arrears due to it under provisions of this Act. Explanation:- Nothing in the second proviso to this sub-section shall be construed as exempting a co-operative marketing society registered or deemed to be registered under the 2Telangana Co-operative Societies Act, 1964, selling notified agricultural produce, livestock or products of livestock grown, reared or produced by any of its members. (1-A) There shall be a state wide single licence for the trader to be granted/renewed by the Director of Marketing or an officer authorized by him in the manner and in the form as may be prescribed. The existing trader licenses granted by the Agricultural Market Committee shall be converted into state wide single trader, license by the Director, Marketing or the officer authorized by him, within six (6) months from the date of commencement of this Act until then the existing trader licenses granted by the Agricultural Market Committees are deemed to have been the state wide single trader licenses. (1-B) A Commission Agent licence shall be granted/renewed by the Agricultural Market Committee in the manner in the form as may be prescribed to operate as a commission agent in a market. (1-C) Warehouse licence shall be granted/renewed by the Agricultural Market Committee for establishing/operating a warehouse in the notified area of the market committee, in the manner and in the form as may be prescribed. (1-D) Processor licence shall be granted/renewed by the Agricultural Market Committee for establishing/operating a processing unit in the notified area of the market committee, in the manner and in the form as may be prescribed. (1-E) License for all other purposes mentioned under sub-section (1) shall be granted/renewed by the Agricultural Market Committee to operate anywhere in the notified area, in the manner and in the form as may be prescribed.

1. (2) Nothing in sub-section (1) shall apply to a person purchasing notified agricultural produce, livestock or products of livestock for his own domestic consumption.
2. (3) A licence granted under sub-section (1) shall be in such form and subject to the payment of such fees, as may be prescribed: Provided that no fees shall be charged for the grant of a licence-
   • (i) to the Khadi and Village Industries Commission;
   • (ii) to a co-operative marketing society referred to in the Explanation to sub-section (1);
   • (iii) to a person merely for curing, pressing or processing any notified agricultural produce or products of livestock.
3. (4) (a) A licence under sub-section (1) may be refused to a person;-
   • (i) whose licence was cancelled and one year has not elapsed since the date of the cancellation;
   • (ii) who has been convicted of an offence or been guilty of misconduct which, in the opinion of the market committee, or the Director of Marketing or the officer authorized by him as the case may be, affects the said person's integrity as a man of business;
   • (iii) in regard to whom the market committee or the Director of Marketing or the Officer authorized by him as the case may be, is satisfied, after such inquiry as it considers adequate, that he is a benamidar for, or a partner with, any other person to whom a licence may be refused under sub-clause (i) or sub-clause (ii), (iv) if, in the opinion of the market committee, or the Director of Marketing or the officer authorized by him as the case may be, the grant of a licence is likely to affect the transaction of purchase of sale in the market or the levy of market fees therefor.
   • (b) the market committee or Director of Marketing or the officer authorized by him as the case may be, in accordance with such rules as may be made by the Government and after such inquiry as it deems fit, cancel or suspend any licence granted under sub-section (1),(1-A), (1- B),(1-C), (1-D), (1-E): Provided that in the case of refusal to grant a licence or of suspension or cancellation of a licence, the applicant or the licensee, as the case may be, shall be entitled to appeal to such officer and in such manner as may be prescribed.
4. (5) A person to whom a licence is granted under sub-section (1) shall comply with the provisions of this Act, the rules and the bye-laws made thereunder and the conditions specified in the licence.
5. (6) Notwithstanding anything contained in sub-section (1), no person shall purchase or sale or processing any notified agricultural produce, livestock and products of livestock outside the market established/declared by the market committee or outside the direct purchase centres.
6. (7) Notwithstanding anything contained sub-sections (1) to (6) the Director of Marketing may grant/renew license in the manner and in the form prescribed, to a person after examination of the credentials, experience and proposed plan to establish a direct purchase centre in a notified area with such facilities as prescribed, for making purchases from the growers of the agricultural produce, livestock, and products of livestock for processing, grading, packing, storing and for sale/export of the products. Provided that the licence so granted under section (7) shall be suspended or cancelled for violation of any provisions of the Act.
7. (8) Notwithstanding anything contained in sub-sections (1) to (7), Government or the competent authority as may be declared by the Government in this behalf, may grant a licence to a person, to establish e-market in a notified area for the purpose of this Act, for e-trading under the conditions of licence granted to him as per the procedure prescribed.
8. (9) Notwithstanding anything contained in sub-section (1) to (8) the Government may grant/ renew a licence to establish and operate private market in the manner and from as may be prescribed, after examination of the credentials, experience and proposed plan to established a Private Market in a notified area for the purposes of this Act, with such facilities as prescribed for facilitating transparent and efficient trading of notified agricultural; produce lives stock and products of livestock; Provided that the licence so granted shall be suspended or cancelled for violation of any provisions of the Act.
9. (10) (a) The Director of Marketing may from time to time identify and notify the markets for conducting online trade through electronic platform and direct the market committee to provide infrastructure for conducting online trade within the stipulated time and the market committee shall provide the infrastructure within the stipulated time.
   • (b) After satisfying himself that the necessary infrastructure is provided in the selected markets, the Director of Marketing shall notify the date with effect from which online trade through electronic platform shall take place.]