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The Assam Agricultural Produce Market (Amendment) Act, 2006

Assam · state statute
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r Registered No. 768/97
THE ASSAM GAZETTE
EXTRA ORDINARY
2 T K J
PUBLISHED BY AUTHORITY
T° 18 1WJ<r, ’lfa<JR, 20 tsrpj^fr, 2007, 30 1928 ( ^ )
No. 18 Dispur, Saturday, 20th January, 2007, 30 Pausha, 1928 (S.E.)
GOVERNMENT OF ASSAM
ORDERS BY THE GOVERNOR
LEGISLATIVE DEPARTMENT :: LEGISLATIVE BRANCH
NOTIFICATION
»
The 19th January, 2007
I
No. LGL. 113/2004/16.—  The following Act of the Assam Legislative Assembly which 
received the assent of the Governor is hereby published for general information.
1  ■  r  . '

78
Preamble
Short title, 
extent and 
commencement
Amendment of
Section 2
IH ^SSA M G A ZETTE x. . EXTRAORDINARY, JANUARY 20, 2007________
THE ASSAM ACT NO. Ill OF 2007
(Received the Assent of the Governor on 16th January, 2007)
THE ASSAM AGRICULTURAL PRODUCE MARKET (AMENDMENT) ACT, 2006  
AN
ACT
further to amend the Assam Agricultural Produce Market Act, 1972.
Whereas it is expedient further to amend the Assam Agricultural Assam Act 
Produce Market Act, 1972, hereinafter referred to as the principal XXIII of 
Act, in the manner hereinafter appearing; 1972
It is hereby enacted in the Fifty-seventh Year of the Republic of 
India, as follows
1. (1) This Act may be called the Assam Agricultural Produce 
Market (Amendment) Act, 2006.
(2) It shall haVe the like extent as the principal Act.
(3) It shall come into force at once.
2. (1) In the principal Act, in section 2, in sub-section ( I  ),-
(i) for clause (xi), the following shall be substituted, 
namely:-
“(xi) “Director” means an officer, not below the rank of 
Additional Secretary to the Government of Assam, 
having sufficient experience in the administration of the 
State, appointed by the State Government by 
notification in the Official Gazette, as Director to 
discharge all or any of the functions of the Director 
under the Act and includes any officer empowered by 
the State Government by notification to exercise and 
perform all or any of the functions of the Director under 
the Act;”
(ii) In clause (xxvi), for the word “and”, occurring in 
between the words “means” and “enclosure”, the word 
“an” shall be substituted and for the word ‘respectively’, 
the following shall be substituted, namely :-
“under section 6”;
(iii) after clause (XL), the following new clauses shall he 
inserted, namely
(XLI) “Contract Farming” means farming by a person 
or a group of persons, called Contract Farming Producer 
under a written agreement with another person called. 
Contract Farming Sponsor to the effect that his farm 
produce shall be purchased as specified in the 
agreement.
Explanation:- “Contract Farming Producer” means an 
individual agriculturist or association of agriculturists, 
by whatever name called, registered under any law for 
the time being in force;
 
THE ASSAM GAZETTE, EXTRAORDINARY, JANUARY 20, 2007 79.
z
Amendment of 
section 3
(XLII) “Contract Farming Agreement” means the 
agreement made for contract farming between Contract 
Farming Sponsor and Contract Farming Producer;
(XLIII) “Hamal” means a labourer or coolie engaged for 
loading, unloading, filling, stitching, emptying or 
carrying any agricultural produce in the notified market 
area;
(XLIV) “Private Market Yard” means such place other 
than the principal market yard I sub-market yard in the 
market area whe, infrastructure has been developed 
and managed by a person or a group of persons or a 
body corporate other than the Market Committee, for 
marketing of specified agricultural produce holding a 
registration for the purposes of this Act;
“(XLV) “Processing” means any one or more of a series 
of treatment relating to powdering, crushing, 
decorticating, dehusking, parboiling, polishing, ginning, 
pressing, curing or any other manual, mechanical, 
chemical or physical treatment to which raw agricultural 
produce or its product is subjected to;
(XLVI) “Processor” means a person or a group of 
persons who undertake processing of any specified 
agricultural produce on his own accord or on payment 
of a charge;
(XLVII) “registration” means registration made under 
this Act;
(XLVIII) “transportation” means taking of agricultural 
produce by pushcart, bullock-cart, truck, any other type 
of vehicle or railway wagon in course of business before 
sale or after the sale has taken place in the market area 
or outside, for marketing, trading or processing from 
one place to another;
(XLIX) “transporter” means a person who transports or 
a body of persons who transport agricultural produce;
(L) “Market Functionary” means a trader, a commission 
agent, buyer, Hamal, Processor, a stockist, a transporter 
and such other person as may be declared, under the 
rules or bye-laws, to be market functionary;
(LI) “value addition” means processing, grading, 
packaging or other activities due to which value is 
added to agricultural produce;
(LII) “Deputy Commissioner” means the Principal 
revenue officer of the district;
(LIII) “Secretary” with reference to the Government 
means the official head of the concerned department in 
the Government and includes a Principal Secretary or a 
Commissioner and Secretary.”
3.(1) In the principal Act, in section 3,-
(i) in sub-section (1), in clause (b), the word “ of Assam” 
shall be omitted;

80 THE ASSAM GAZETTE, EXTRAORDINARY, JANUARY 20, 2007
(ii) in sub-section (12), in clause (a), in the second proviso,-
(a) in the first line, between the words, “prejudice to the ” 
and “rule making power”, the word “generality” shall be 
inserted;
(b) in the first line, between the words “employees of the”  
and “Market Committees”, the word “Board and” shall 
be inserted;
(c) after the existing provision, full stop (.) shall be omitted 
and thereafter the following proviso shall be inserted, 
namely :- “Provided also that the approval as required 
under the aforesaid proviso, if not received within a 
period of ninety days from the date of seeking thereof, 
shall be deemed to have been approved on the expiry of 
the said period”.
Insertion of new 
section 3J
4. In the principal Act, after section 31, the following new 
section shall be inserted, namely :-
“Power and 
functions of the
Director
3 J (1) Subject to the provisions of this Act and the rules made 
there under, the Director may perform the functions as 
specifically provided under this Act. The State 
Government may delegate any or all the powers vested 
in it under this Act and rules framed there under to the 
Director. The Director may delegate any or more of his 
functions to any other officer or officers under him.
(2) The functions of the Director shall also include -
(i) supervision of the private market yard, direct 
purchase of agricultural produce from the agriculturist, 
consumers and farmers market, processing of 
agricultural produce from the agriculturist, consumers 
and farmers market, processing of agricultural produc e, 
activities of the registration holders under the Act and 
activities of the contract farming sponsor and producer ;
(ii) without prejudice to the provisions of section 45, 
authorising any officer in writing to launch prosecution 
for contravening any provisions of the Act and the rules 
made there under;
(iii) taking steps for grading and standardisation of 
agricultural produce.”
Amendment of 
section 4
5. In the principal Act, in section 4, in sub-section (1), in
the first line, between the words, “intention o f’  and 
“regulating”, the words “developing and” shall be 
inserted.
Amendment of 
section 5
6. (1) In the principal Act, in section 5,
(i) for sub-section (2), the following shall be substituted,
namely:-
“(2) On and after the date of the publication of the 
notification under sub-section (1) or at such later date as 
may be specified therein, no person shall, except in 
accordance with the provisions of this Act, the rules and 
the bye-laws framed there under-

THE GAZETTE, EXTRAORDINARY, JANUARY 20, 2007______ 81.
Insertion of new 
sections 5A, 5B, 
5C, 5D, 5E, 5F, 
5G, 5H, 5 1
“Sale of specified 
agricultural 
oroduce
(i) use any place in the market eurea for the marketing of 
specified agricultural produce; or
(ii) operate in the market area as a market functionary”;
(ii) in sub-section (3), for the words, figure and brackets, 
“sub-section (2)”, the words and figures and brackets 
“sub-sections (1) and (2)” shall be substituted.
In the principal Act, after section 5, following new 
sections shall be inserted, namely,
Establishment of 
Private market 
yards and direct 
purchase of 
agricultural 
produce from 
agriculturist
5A (1) All specified agricultural produce shall ordinarily be 
sold in the principal market yard / sub-market yards, 
subject to the provisions of sub-section (2):
Provided that the specified agricultural produce 
may also be sold at private market yards and other 
places subject to the provisions of sections 5B, 5C and 
5D.
Provided further that it shall not be necessary to 
bring agricultural produce covered under contract 
farming to the principal market yard / sub-market yard / 
private market yard and it may be directly sold to 
contract farming sponsor from farmers’  field.
(2) Such specified agricultural produce, as may be brought 
by the licensed/registered traders from outside the 
market area or in the market area in the course of 
commercial transaction or by way of transportation, 
may be brought or sold anywhere in the market area.
(3) The price of the specified agricultural produce, brought 
for sale into the principal market yard or sub-market 
yard, shall be settled by tender bid or open auction or in 
any other transparent system and no deduction shall be 
made from the agreed price on any account whatsoever 
from the seller.
Provided that the price of specified agricultural 
produce in the private market yards shall be settled in 
the manner as may be prescribed.
5B. The Director maj issue registration in the prescribed 
manner to purchase agricultural produce by establishing 
private market yard or direct from agriculturist, in one 
or more market area for -
(a) process of the specified agricultural produce;
(b) trade of specified agricultural produce of 
particular specification;
(c) export of specified agricultural produce;
(d) grading, packaging and transaction in other way 
by value addition of specified agricultural 
produce.

82 THE ASSAM GAZETTE, EXTRAORDINARY. JANUARY 20, 2007
Establishment of 
consumer/farmer 
market (direct 
sale by the 
producer)
5C. (1) Consumer/Farmer market may be established by 
developing infrastructure, by any person or group of 
persons or a body corporate other than the Market 
Committee in any market area. At such place, producer 
of agricultural produce himself may sell his produce 
directly to the consumer :
Provided that the consumer shall not purchase 
more than such quantity of a commodity at a time in the 
consumers market as may be prescribed.
(2) Registration for establishment of consumer/farmer 
market shall be granted by the Director in such manner 
as may be prescribed.
Grant/renewal of 
registration
5D (1) Any person or a group of persons or a body corporate 
other than the Market Committee, who desire to 
purchase specified agricultural produce direct from the 
agriculturists or wish to establish a private market yard 
under section 5B or desire to establish consumer/larmcr 
market in one or more than one market area under 
section 5C shall apply to the Director for grant or 
renewal of the registration, as the case may be, in the 
manner as may be prescribed.
(2) Along with every such application for registration or 
renewal thereof, the prescribed fees shall be deposited.
(3) The Director shall grant the registration or a renewal 
thereof in the prescribed manner or may refuse the same 
on any one or more of the following grounds, to be 
recorded in writing, as the case may be
(i) if the Market Committee’s dues are outstanding 
against the applicant, the registration shall not be 
granted/renewcd;
(ii) if the applicant is a minor;
(iii) if the applicant has been declared defaulter under 
the Act and rules made there under;
(iv) such other reasons as may be prescribed.
(4) While granting registration or a renewal thereof under 
this section, the Director shall specify that no amount 
shall be realised on any account by the owner of the 
market from the seller of agricultural produce.
(5) Any registration granted/renewed under this section 
shall be subject to provisions of this Act and the rules 
framed there under.
Power to 
cancel/suspend 
the registration
5E. (1) Subject to the provisions of sub- section (2), the Director 
may, for the reasons to be communicated in writing to 
the registration holder, suspend or cancel the registration, 
if
(a) the registration has been obtained through wilful 
misrepresentation or fraud;
(b) the holder of the registration or any one acting on his 
behalf commits a breach of any one or more of the 
conditions of registration;

THE ASSAM GAZETTE, EXTRAORDINARY, JANUARY 20, 2007
(c) the holder of the registration commits any act or
z abstains from carrying on his normal business in the
market area with the intention of obstructing, suspendi ng 
or stopping the marketing of specified agricultural 
produce in the principal market yard/sub-market yard 
and in consequence thereof the marketing of any 
specified agricultural produce has been obstructed, 
suspended or stopped;
(d) the holder of the registration has become insolvent
(e) the holder of the registration incurs any other 
disqualifications as may be prescribed and
(f) the holder of the registration is convicted of atiy 
offence under this Act.
(2) No registration shall be suspended or cancelled under 
this section without giving a reasonable opportunity to 
its holder to show cause against such suspension or 
cancellation.
I
83.
Contract Farming
Redressal of 
dispute
5F. Contract Farming agreement shall be governed in the 
>  manner laid hereinafter provided .-
(1) Contract Farming Sponsor shall register himself with the 
Deputy Commissioner of the district where the contract 
farming producer resides, in such manner as may be 
prescribed.
(2) The Contract Farming Sponsor shall also get the contract 
farming agreement recorded with the Deputy 
Commissioner of the district, where the contract farming 
producer resides, in such manner as may be prescribed in 
this behalf. The contract farming agreement shall be in 
such form and containing such particulars and terms and 
conditions, as may be prescribed.
Notwithstanding anything contained in contract 
farming agreement, no title, right, ownership or 
possession shall be transferred or alienated or will vest in 
the contract farming sponsor or his successor or his agent 
as a consequence arising out of the contract farming 
agreement.
(3) Disputes arising out of contract farming agreement may 
be settled by the Director. The Director shall resolve the 
dispute in a summary manner within thirty days after 
giving the parties a reasonable opportunity of being 
heard.
5G. Any dispute between the owners of private market yards, 
consumer/farmer market and the Market Committee 
shall be referred to the Director or his representative or 
any other officer authorised by the State Government in  
this regard, lite dispute shall be resolved after giving 
both the parties a reasonable opportunity of being heard. 
Appeal against the decision may be preferred for 
disposal under section 5H in such manner as may be 
prescribed.

84 .THE ASSAM GAZETTE, EXTRAORDINARY, JANUARY 20, 2007
Appeal 5H.
Market yards and 
Sub-market 
yards,
Farmer/Consumer
Market and
Private Market
5 1 .
Amendment of 
section 13
8.
Amendment of 
section 14
9.
Any aggrieved person, concerning any matter under 
section 5B, 5C, 5D and 5E or a contract fanning sponsor 
or producer under section 5F against the decision of the 
Director or an aggrieved person under section 5G against 
the decision of the director, may prefer an appeal before 
the State Government in the prescribed manner whose 
decision thereon shall be final and shall not be called in 
question in any court of law. f
In every market area, there may be-
(i) a principal mark . .  yard and one or more sub-market 
yards managed by the Market Committee;
(ii) one or more than one private market yards managed 
by a person or a group of persons or a body corporate 
other than the Market Committee;
(iii) one or more than one Farmer/consumer markets 
managed by a person or a group o f persons or a body 
corporate other than the Market Committee.”
In the principal Act, in section 13, for sub-section (2), the 
following shall be substituted, namely ;-
“(2) Where a Market Committee is established in any 
area, no person shall, subject to the provisions of 
sections 5A, 5B, 5C, 5D, 5E and 5F, use any place for 
buying and selling of specified agricultural produce and 
function as a trader, commission agent, broker, 
weighman, measurer, surveyor, warehouseman, 
transporter, processor or in any other capacity as market 
functionary within the market area unless a licence is 
issued to such person by the Market Committee on 
payment o f such fee and subject to such conditions as 
may be prescribed.”
In the principal Act, in section 14, in the beginning, for 
the word “The”, following words, figures and 
punctuation marks shall be substituted, namely :-
“Subject to the pro visions of sections 5A, 5B, 5C, 51), 
5E and 5F of the Act, the”.
Amendment of
section 21
10. In the principal Act, for section 21, except Explanation 1
and 2 thereof, the following shall be substituted and the 
said section along with Explanation 1  and 2 shall be 
deemed to have been inserted with effect from 3 ,d 
September, 1974, namely
Power to levy
cess
21(1) Every Market Committee shall levy and collect a cess on 
the agricultural produce bought or sold in the market 
area at a rate not exceeding two rupees for every'one 
hundred rupees of the aggregate amount for which a 
specified agricultural produce is bought or sold whether 
for cash or for deferred payment or other valuable 
considerations.

— ----------IHE_ASSAM GAZETTE, EXTRAORDINARY JANUARY 20, 2007 8'5
(2) The Assam State Agricultural Marketing Board shall 
also have the power to levy and collect cess for any or all 
of the Market Committee(s) in the market areas in 
addition to the powers of the Market Committee (but not 
both), whenever felt necessary with approval of the State 
Government, on the agricultural produce bought or sold 
in such market area(s) at a rate not exceeding two 
Rupees for every one hundred rupees of aggregate 
amount for which a specified agricultural produce is 
bought or sold whether for cash or for deferred payment 
or other valuable considerations.
(3) No cess will be levied on goods manufactured from the 
agricultural produce on which cess is proposed to be 
levied and which are ultimately exported out of the ' 
Country.”
Amendment of 11. In the principal Act, in section 21 A, the existing 
section 21A provision shall be renumbered as 21 A (l) and after sub­
section (1) so renumbered, the following sub-section (2) 
shall be inserted, namely
“(2) In case of any specific need for prevention of 
evasion of cess the Assam State Agricultural Marketing 
Board may also establish composite check gate(s) for ill 
Market Committees and/or any check gate at any point, 
within any market area of any Market Committee 
whenever felt necessary with approval of the State 
Government.”
Amendment of 
section23
12. In the principal Act, in section 23, for the figure and 
letter “3E”, the figure and letter “3D” shall be 
substituted.
M. A. HAQUE 
Secretary to the Govt, of Assam, 
Legislative Department.
GUWAHATI - Printed and published by the Dy. Director (P&S) Directorate of Ptg. and Sty., Assam, Guwahati-21 
(Ex-Gazette) No. 35-500+600-20-1-2007.
 
 

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