LexThe Himachal Pradesh Agricultural and Horticultural Produce Marketing (Development and Regulation) Act, 2005
Himachal Pradesh · state statute
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THE HIMACHAL PRADESH AGRICULTURAL AND
HORTICULTURAL PRODUCE MARKETING (DEVELOPMENT
AND REGULATION) ACT, 2005
ARRANGEMENT OF SECTIONS
CHAPTER-I
PRELIMINARY
Sections:
1. Short title.
2. Definitions.
CHAPTER-II
ESTABLISHMENT, CONSTITUTION, POWERS AND
FUNCTIONS OF THE BOARD
3. Establishment of the Board.
4. Constitution of the Board.
5. Term of office of the Chairman and the non-offic ial members of
the Board.
6. Disqualification of members of the Board.
7. Resignation of members of the Board.
8. Removal of members of the Board.
9. Appointment of officers and servants of the Boar d.
10. Allowances of the Chairman and non-official mem bers of the
Board.
11. Powers and Functions of the Board.
12. Powers and Functions of the Managing Director o f the Board.
13. Meeting of the Board.
14. Quorum.
15. Act of the Board not to be invalidates.
16. Appointment of Sub-Committees.
17. Superintendence and control of the Board.
18. Delegation of Powers.
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CHAPTER – III
REGULATION OF TRADING AND CONTRACT FARMING.
19. Notification of intention of developing and reg ulating the
marketing of notified agricultural produce.
20. Notification of intention to alter limits of or to split up market
areas to de-establish a market.
21. Market yards, Sub-market yards, Farmer’s, consumer’s and
private market yards.
22. Establishment of private yards, and direct purc hase of
agricultural produce from agriculturists.
23. Establishment of consumer’s or farmer’s markets and creation
of post harvest management facilities by the farmer s/
agriculturists.
24. Contract farming.
25. Grant and renewal of licence of private yard, c onsumer's and
farmer’s Market.
26. Power to cancel or suspend licence.
27. Regulation of marketing of notified agricultura l produce.
28. Sale of notified agricultural produce.
CHAPTER – IV
ESTABLISHMENT, CONSTITUTION, POWERS AND
FUNCTIONS OF THE COMMITTEE.
29. Establishment of the Committee.
30. Constitution of the Committee.
31. Term of office of the members of the Committee.
32. Disqualifications of member of the Committee.
33. Removal of members of the Committee.
34. Meeting of the Committee.
35. Election of Chairman of the Committee.
36. Resignation by the Chairman of the Committee.
37. No confidence motion against the Chairman of th e Committee.
38. Act of Committee not to be invalidated.
39. Powers and functions of the Committee.
40. Registration of market functionaries.
41. Appointment of Secretary of the Committee.
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42. Appointment of Sub-Committees and delegation of powers.
43. Powers and duties of the Secretary of the Commi ttee.
CHAPTER – V
FINANCE, ACCOUNTS AND AUDIT OF THE BOARD
AND THE COMMITTEE
44. Levy of Market fee.
45. Single point levy.
46. Marketing Development Fund.
47. Annual Budget of the Board.
48. Accounts, Audit and Annual report of the Board.
49. Committee Fund.
50. Preparation and sanction of budget of Committee .
51. Purpose for which the Committee Fund may be exp ended.
52. Power to borrow.
CHAPTER – VI
CONTROL
53. Inspection of markets and inquiry into the affa irs of the
Committee.
54. Power to call the proceedings of Committee or t he Board.
55. Power to prohibit execution or further executio n of resolution
passed or order made by the Committee.
56. Liability of Chairman, Vice-Chairman, members a nd
employees for loss, waste or misappropriation, etc.
57. Members, officers and servants of the Board and Committees to
be public servant.
58. Prohibition of trade allowance.
59. Power to order production of accounts, entry, i nspection and
seizure.
60. Submission of annual accounts by licensees and registered
functionaries and assessment.
61. Assessment of market fee.
62. Power to stop vehicles and inspect.
63. Power to remove encroachments in the market yar d.
64. Power to grant exemption from market fees.
65. Power to write off irrecoverable fee, etc.
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66. Recovery of sums due to the Board or the Commit tee.
67. Redressal of disputes between private market or consumer
market and Committee.
68. Appeal.
69. Bar to civil suit and protection to persons act ing in good faith.
70. Bar to suit in absence of notice.
71. Power of State Government to amend SCHEDULE.
CHAPTER – VII.
OFFENCES AND PENALITES
72. Penalty for contravention of Act, Rules and Bye -Laws.
73. Recovery of market dues.
74. Cognizance of offences.
75. Power to compound offences.
CHAPTER – VIII
MISCELLANEOUS
76. Mode of making contract.
77. Octroi not payable on certain agricultural prod uce.
78. Acquisition of land for the Board and the Commi ttee.
79. Super session of the Board and the Committee.
80. Reference to Arbitrator in case of dispute.
81. Abolition of the Himachal Pradesh Marketing Boa rd and
transfer of its assets and liabilities.
82. Abolition of Market Committees and transfer of their assets and
liabilities.
83. Power to make rules.
84. Power to make bye-laws.
85. Power to make Regulations.
86. Repeal and savings.
SCHEDULE.
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(DEVELOPMENT AND REGULATION) ACT, 2005
THE HIMACHAL PRADESH AGRICULTURAL AND
HORTICULTURAL PRODUCE MARKETING (DEVELOPMENT
AND REGULATION) ACT, 2005.
(ACT NO. 20 OF 2005) 1
(Received the assent of the Governor on 25 th May, 2005 and was
published both in Hindi and English in R.H.P. Extra ., dated 26.5.2005 at
pages 817-940)
An Act to re-enact the law to provide for improved regulation in
marketing of agricultural produce, development of e fficient
marketing system, promotion of agri-processing and agricultural
exports, establishment and proper administration of markets for
agricultural produce in the State of Himachal Prade sh and to
ensure level playing field for competitive markets to operate
through setting of minimum standards for facilities, procedures and
systems, thereby promoting the establishment of wel l administered
and efficient infrastructure for marketing of agric ultural produce
in and from the State of Himachal Pradesh.
BE it enacted by the Legislative Assembly of Himachal Pradesh in the
Fifty- sixth Year of the Republic of India, as follows : -
CHAPTER-I
PRELIMINARY
1. Short title .- This Act may be called the Himachal Pradesh
Agricultural and Horticultural Produce Marketing (D evelopment and
Regulation) Act, 2005.
2. Definitions.- In this Act, unless there is anything repugnant in the
subject or context,-
(a) “agricultural produce” means all produce and commod ities,
whether processed or unprocessed of agriculture, ho rticulture,
apiculture, sericulture, livestock and products of live stock,
fleeces (raw wool) and skins of animals, forest pro duce and
fisheries as are specified in the Schedule to this Act or declared
by the Government by notification under section 19 of this Act,
and also includes a mixture of two or more than two such
products;
(b) “agriculturist” means a person who is a bonafide Hi machali and
owns and possesses land in Himachal Pradesh and who is
engaged in production of agricultural produce by hi mself or by
hired labour or otherwise, but does not include any market
functionary;
1. Passed in Hindi by the Himachal Pradesh Vidhan S abha. For Statement of Objects
and Reasons see R.H.P. Extra., dated 4.4.2005, p. 146 &192.
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(c) “Board” means the Himachal Pradesh State Agricultur al
Marketing Board established under section 3 of this Act;
(d) “business” means purchase, sale, processing, value addition,
storage, transportation and connected activities of agricultural
produce;
(e) “buyer” means a person, a firm, a company or a Coop erative
Society or Government Agency, Public Undertaking/ P ublic
Agency or Corporation, commission agent, who himsel f or on
behalf of any other person or agent buy or agrees t o buy
agricultural produce in the notified market area;
(f) “bye-laws” means the bye-laws made by the Board for the
Committee under section 84 of this Act;
(g) “Chairman” means Chairman of the Board;
(h) “commission agent” means a person who on behalf of his
principal trader and in consideration of a commissi on or
percentage on the amount involved in such transacti on buys
agricultural produce and makes payment, keeps it in his custody
and delivers it to the principal trader in due cour se or who
receives and takes in his custody agricultural prod uce sent for
sale within the market area or from outside the mar ket area,
sells the same in the market area and collects paym ent thereof
from the buyer and remits the sale proceeds to his principal
trader;
(i) “Committee” means an Agricultural Produce Market
Committee established under section 29;
(j) “contract farming” means farming by a person called “Contract
Farming Producer” under a written agreement with an other
person called “Contract Farming Sponsor” to the eff ect that his
farm produce shall be purchased as specified in the agreement;
Explanation .- “Contract Farming Producer” means an
individual agriculturist or an association of agric ulturists by
whatever name called registered under any law for t he time
being in force;
(k) “Contract Farming Agreement” means the agreement ma de for
a specific period for contract farming between Cont ract
Farming Sponsor and Contract Farming Producer;
Explanation .-“contract farming sponsor” means a sole
proprietor, a company registered under the Companie s Act,
1956, a partnership firm registered under the Partn ership Act,
1932, a Government Agency, Cooperative Societies re gistered
under the Himachal Pradesh Cooperative Societies Ac t, 1968,
and shall include its administrators, successors, r epresentatives
and assignees;
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(l) “Cooperative Society” means a Cooperative Society o f
producers registered under the provisions of the Hi machal
Pradesh Cooperative Societies Act, 1968, which deal s in the
purchase, sale, processing, or storage of agricultural produce, or
is otherwise engaged in the business of disposal of agricultural
produce;
(m) “export” means dispatch of agricultural produce out side India;
(n) “exporter” means a person who exports agricultural produce;
(o) “e-trading” means trading in which billing, booking ,
contracting, negotiating, information exchange, rec ord keeping
and other connected activities are done electronica lly on
computer network/ internet;
(p) “hamal” means a labourer, hamal or coolie engaged f or dara-
making, loading, unloading, filling, stitching, emp tying or
carrying any agricultural produce in the notified market area;
(q) “import” means bringing agricultural produce from o utside
India;
(r) “importers” means person who imports agricultural p roduce
from outside India;
(s) “license” means license granted under this Act;
(t) “licensee” means a person or association, firm, com pany, public
sector undertaking or society holding a license issued under this
Act;
(u) “market” means a market established under section 1 9 of this
Act which includes market area, market yard/ sub ya rds and
principal market yard;
(v) “market area” means area notified under section 19 of this Act;
(w) “market charges” includes charges on account of or in respect
of commission, brokerage, weighing, measuring, hamm aling
(loading, unloading or carrying), cleaning, drying, sieving,
stitching, stacking, hiring, gunny bags, stamping, bagging,
storing, warehousing, grading, surveying, transport ing and
processing;
(x) “market functionary” means a trader, a commission agent,
buyer, hamal, processor, a stockiest, and any other person as
may be declared by the State Government, by notification, to be
a market functionary;
(y) “market yard” in relation to a market area means a specified
place and includes any enclosures, buildings or locality declared
as such in any market area by the State Government by
notification;
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(z) ‘member’ includes the Chairman, of the Board;
(za) “marketing” means all activities involved in the flow of
agricultural produce from the production points com mencing
from the stage of harvest till these reach the ulti mate
consumers, viz, grading, processing, storage, trans port,
channels of distribution and all other functions in volved in the
process;
(zb) “notification” means notification issued unde r this Act and
published in the Official Gazette;
(zc) “notified agricultural produce” means any agri cultural produce
notified under section 19 of this Act;
(zd) “person” shall include any company or associat ion or body of
individuals, whether incorporated or not;
(ze) “producer” means a person, who in his normal course of
avocation, grows, manufactures, rears or produces, as the case
may be, agricultural produce personally, through te nants or
otherwise, but does not include a person who works as a trader
or a broker or who is a partner of a firm of trader s or brokers is
otherwise engaged in the business of disposal or st orage of
agricultural produce other than that grown, manufac tured,
reared or produced by himself through his tenants or otherwise:
Provided that no person shall be disqualified fro m being a
producer merely on the ground that he is a member o f a
Cooperative Society;
Explanation ,– The term “producer” shall also include tenant;
(zf) “prescribed” means prescribed by rules made u nder this Act;
(zg) “processing” means any one or more of a serie s of treatments
relating to powdering, crushing, decorticating, deh usking,
parboiling, polishing, ginning, pressing, curing, cleaning, or any
other manual, mechanical, chemical or physical trea tments to
which raw agricultural produce or its product is subjected to;
(zh) “processor” means a person who undertakes pro cessing of any
notified agricultural produce on his own accord or on payment
of a charge;
(zi) “private market yard” means such place other t han the market
yard/ sub market yard in the market area where infr astructure
has been developed and managed by a person for mark eting of
notified agricultural produce holding a licence for this purpose
under this Act;
(zj) “registration” means registration done under this Act;
(zk) “regulation” means regulations made by the Bo ard under
section 85 of this Act;
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(zl) “retail sale” means sale of agricultural prod uce not exceeding
such quantity as may be prescribed;
(zm) “State Government” or “Government” means the Government
of Himachal Pradesh;
(zn) “seller” means a person who sells or agrees t o sell any
agricultural produce;
(zo) “trader” means a person who in his normal cou rse of business
buys or sells any notified agricultural produce and includes a
person engaged in processing of agricultural produc e but does
not include an agriculturist;
(zp) “transportation” means taking agricultural pro duce by push cart,
bullock cart, truck or other vehicle in course of b usiness for
marketing from one place to another;
(zq) “transporter” means a person who transports ag ricultural
produce; and
(zr) “value addition” means processing, grading, p acking or other
activities due to which value is added to agricultural produce.
CHAPTER-II
ESTABLISHMENT, CONSTITUTION, POWERS AND
FUNCTIONS OF THE BOARD.
3. Establishment of the Board.- (1) The State Government may, by
notification, for coordinating the activities of ma rkets and for development,
promotion and regulation of agricultural marketing, establish the Himachal
Pradesh State Agricultural Marketing Board.
(2) The Board shall be a body corporate having perp etual succession
and a common seal and may sue and be sued in its co rporate name and shall
be competent to acquire and hold property both moveable and immovable and
to lease, sale or otherwise transfer any such prope rty amid to contract and to
do all other things necessary for the purpose for which it is established.
4. Constitution of the Board.- The Board shall consist of a
Chairman, who shall be appointed by the State Gover nment and twenty
members including Vice-Chairman of whom ten shall b e ex-officio members
and ten non-official members to be nominated by the State Government in the
following manner, namely:-
(a) Ex-officio members ,-
(i) The Secretary (Agriculture) to the Vice–Chairman;
Government of Himachal Pradesh.-
(ii) The Secretary (Horticulture) to the Government of H imachal
Pradesh;
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(iii) The Secretary (Finance) to the Government of Himach al
Pradesh;
(iv) The Secretary (Forest) to the Government of Himachal Pradesh;
(v) The Principal Chief Conservator of Forests, Himachal Pradesh;
(vi) Director of Agriculture, Himachal Pradesh;
(vii) Director of Horticulture, Himachal Pradesh;
(viii) Registrar, Cooperative Societies, Himachal Pradesh;
(ix) Chief General Manager of National Bank for Agricult ure and
Rural Development, Shimla; and
(x) Managing Director of the Himachal Pradesh State Agr icultural
Marketing Board.
(b) Non–official members ,-
(i) two shall be Chairmen of the Committees;
(ii) four shall be other progressive agriculturists/farmers;
(iii) two shall be from amongst such traders registered under section
40 of this Act; and
(iv) two shall be from amongst experts having experience in
agricultural marketing.
5. Term of office of the Chairman and the non-offic ial members
of the board .- (1) The Chairman and the non-official members of the Board
shall hold office during the pleasure of the State Government. In the event of
super session of the committee from where the members have been nominated
in the Board, the concerned member shall cease to be a member of the Board.
(2) The tenure of the Vice-Chairman and ex-officio members of the
Board shall come to an end as soon as he ceases to hold the office by virtue of
which he was nominated.
(3) Whenever there is a temporary vacancy in the office of the
Chairman, the Vice- Chairman shall act as the Chairman during the vacancy.
6. Disqualification of members of the Board.- No person shall be
eligible to become a member of the Board who, -
(a) does not ordinarily reside within Himachal Pra desh;
(b) is below 25 years of age;
(c) has been removed under section 8 or section 33 of this Act;
(d) is of unsound mind; and
(e) has been declared insolvent or sentenced by a crimi nal court,
whether within or outside Himachal Pradesh for an o ffence
involving moral turpitude:
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Provided that the disqualification under clause (e) on the ground of a
sentence by a criminal court shall not apply after the expiry of four years from
the date on which the sentence of such person has expired.
7. Resignation of members of the Board.- The Chairman of the
Board may resign by tendering his resignation to the State Government, and a
member other than the Chairman of the Board may res ign from membership
by tendering his resignation to the State Government through the Chairman of
the Board, and the seat of such Chairman or the mem ber, as the case may be,
shall become vacant on the date of acceptance of his resignation.
8. Removal of members of the Board.- The State Government may
remove any non-official member of the Board who has become subject to any
of the disqualifications specified in section 6 or who is, in its opinion, unfit to
act, as a member or remiss in the discharge of his duties or whose continuance
as a member of the Board is considered to be prejud icial to its interest and
may appoint another member of the Board in his plac e in the manner as
provided under section 4 from the category to which the removed member
belongs:
Provided that before removing a member, the reasons for the
proposed action shall be conveyed to him and his re ply invited within a
specified period and duly considered:
Provided further that any vacancy of the non offici al member shall be
filled in as early as practicable.
9. Appointment of officers and servants of the Boar d.- (1) The
Board shall have a Managing Director who shall be a ppointed by the State
Government and he shall also be the Chief Executive Officer of the Board
employees.
(2) The Managing Director appointed under sub secti on (1) shall also
function as the Member Secretary of the Board.
(3) For the efficient discharge of duties and funct ions of the Board
and the Committees, the Board may, with the prior a pproval of the State
Government, appoint such other officers including C ivil Engineer and
employees as may be necessary.
(4) The Superintendence and control over all the of ficers and
employees of the Board and Committees shall vest in the Managing Director
of the Board.
10. Allowances of the Chairman and the non-official mem bers of
the Board.- The Chairman and non-official members of the Board shall be
paid from the Marketing Development Fund such sitti ng fees and allowances
as may be prescribed.
11. Powers and functions of the Board.- (1) The Board shall,
subject to the provisions of this Act, perform the following functions and shall
have power to do such things as may be necessary or expedient for carrying
out these functions:-
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(i) exercise superintendence and control over all the C ommittees
established and constituted under this Act;
(ii) coordinate the working of the Committees and other affairs
thereof including programmes undertaken by such Com mittees
for the development of markets and market areas;
(iii) undertake the State level planning of the de velopment of
agricultural produce markets;
(iv) administer the Marketing Development Fund;
(v) to give directions to the Committees in genera l or any
Committee in particular with a view to ensure impro vement
thereof;
(vi) any other functions specifically entrusted to it by this Act; and
(vii) such other functions of like nature as may b e entrusted to the
Board by the State Government.
(2) Without prejudice to the generality of the for egoing provisions,
such functions of the Board shall include,-
(i) to approve proposals for selection of new sites by the
Committees for establishment of principal or sub-market yard;
(ii) to approve proposal for constructing infrastructure facilities in
the market area such as grading, pack houses, stora ges,
processing, other post harvest management facilities etc;
(iii) to supervise and guide the Committee in the prepara tion of
plans and estimates of construction programme under taken by
the Committee;
(iv) to execute all works chargeable to the Board’s fund;
(v) to maintain accounts and get the same audited in su ch form and
in such manner as may be prescribed;
(vi) to publish annually at the close of the year its pr ogress report,
balance sheet and statement of assets and liabiliti es and send
copies thereof to each member of the Board and the State
Government;
(vii) to undertake marketing extension activities in the Board for the
transfer of marketing technology and extension services. It may
also make necessary arrangements for propaganda and publicity
on matters related to regulated marketing of an agr icultural
produce and development of marketing;
(viii) to provide facilities for the training of officers and staff of
Committees and the Board after assessing the demand for
trained personnel in agricultural marketing at all levels;
(ix) to prepare and adopt budget for the ensuing year;
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(x) arrange or organize seminars/ workshops/ exhibition s, etc. on
subjects related to agricultural marketing;
(xi) to do such other things as may be of general intere st to
Committees or considered necessary for the efficien t
functioning of the Board;
(xii) to organise and promote grading and standardization of notified
agricultural produce and e-trading; and
(xiii) to set up an Agricultural Produce Marketing Standar ds Bureau
to perform such functions and duties as may be pres cribed for
the purpose of promotion of grading, standardizatio n and
quality certification of agricultural produce in the State;
12. Powers and functions of the Managing Director of the Board.-
The Managing Director of the Board shall, -
(i) exercise supervision and control over officers and staff of the
Board in matters of executive administration, conce rning
accounts and records and disposal of all questions relating to
the service of the employees in accordance with the procedure
as may be prescribed;
(ii) incur expenditure from the Marketing Developm ent Fund on
the sanctioned items of work;
(iii) have the same powers as are conferred under the financial rules
of the State Government on the Head of the Departme nt and
exercise such other powers and discharge such other duties as
may be prescribed;
(iv) have the power to transfer employees of one Co mmittee to the
Board and vice-versa on administrative grounds;
(v) in case of emergency, direct the execution or stoppage of any
work and doing of any act which requires the sancti on of the
Board;
(vi) prepare annual budget of the Board;
(vii) arrange for internal audit of the Board;
(viii) arrange for the meeting of the Board and ma intain records of
the proceedings of the meetings of the Board in acc ordance
with the procedure as may be prescribed;
(ix) take such steps as deemed necessary for execu tion of the
decision of the Board;
(x) inspect the construction work undertaken by th e Committees
either from their own funds or loans or grants prov ided by the
Board or any other agencies and take corrective measures;
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(xi) report such acts either of the Committees or of the Board which
are contrary to the provisions laid down under this Act or rules
and bye-laws made thereunder to the State Government; and
(xii) take such steps as deemed necessary for effe ctive discharge of
the functions of the Board.
13. Meeting of the Board.- (1) The Board shall meet for the
transaction of its business at least once in every three months at such place
and at such time as the Chairman may determine.
(2) All the proceedings of the Board shall be authe nticated by the
Chairman and the Managing Director of the Board.
(3) The Board shall conduct the business in such ma nner as may be
prescribed by regulation.
14. Quorum.- One third of the total members shall constitute a
quorum at a meeting of the Board. All questions tha t may come up before a
meeting of the Board shall be determined by a major ity of votes of the
members present and voting; and in case of equality of votes, the Chairman
shall have a casting vote:
Provided that if a meeting is adjourned for want of quorum, no
quorum shall be necessary at the next meeting calle d for transacting the same
business.
15. Act of the Board not to be invalidated.-No act or proceedings of
the Board shall be invalid by reason only on of the existence of any vacancy
among its members or any defect in the constitution thereof.
16. Appointment of Sub-Committees.- The Board may appoint Sub-
Committees consisting of three or more members whic h shall include
Chairman or Vice-Chairman and the Managing Director of the Board, for the
performance of any of its duties or functions or fo r giving advice on any
matter incidental thereto and may delegate to such Sub-Committee any of its
duties or functions as it may deem necessary.
17. Superintendence and control of the Board.- The State
Government shall exercise superintendence and control over the Board and its
officers and may call for such information as it ma y deem necessary and, in
the event of its being satisfied that the Board is not functioning properly, or is
abusing its powers or is guilty of corruption or mi smanagement, it may
suspend the Board and, till such time as a new Boar d is constituted, make
such arrangement for the exercise of the functions of the Board, as it may
think fit:
Provided that the Board shall be constituted within six months from
the date of its suspension.
18. Delegation of powers.- (1) The State Government may delegate
to the Board any of powers conferred on it by or un der this Act except power
to make rules.
H. P. AGRICULTURAL AND HORTICULTURAL PRODUCE MARKETING 15
(DEVELOPMENT AND REGULATION) ACT, 2005
(2) Subject to the provisions of this Act, the Boar d may by general or
special order delegate to the Managing Director of the Board or Sub-
Committee appointed by it or to any officer of the Board, any of powers and
duties conferred on it by or under this Act as it may deem fit.
CHAPTER-III
REGULATION OF TRADING AND CONTRACT FARMING
19. Notification of intention of developing and reg ulating the
marketing of notified agricultural produce.- (1) The State Government on
its own or on the representation made by the grower s or on the
recommendation of the Board may, by notification, d eclare its intention of
exercising control over the purchase, storage, proc essing and sale of such
agricultural produce, in such area as may be specif ied in the notification, by
inviting objections or suggestions from the general public within a period of
thirty days from the date of publication of notific ation which shall be
considered by it.
(2) After the expiry of the period specified in the not ification issued
under sub-section (1), and after considering objections and suggestions, if any,
received before the expiry of the specified period, and after making such
inquiry, as may be necessary, the State Government may by notification,
declare the area specified in the notification, or any portion thereof to be a
market area for the purpose of this Act and that ma rketing of all or any of the
kinds of agricultural produce specified in the noti fication shall be developed
and regulated in such market area in accordance wit h the provisions of this
Act.
20. Notification of intention to alter limits of or to split up market
area to de-establish a market.- (1)The State Government may, by
notification, declare its intention --
(a) to alter the limits of a market area by includ ing within it any
other area in the vicinity thereof or by excluding therefrom any
area comprised therein; or
(b) to amalgamate two or more market areas and con stitute one
Committee thereof; or
(c) to split up a market area and to constitute tw o or more
Committees thereof; or
(d) to de-establish a market.
(2) Every notification issued under sub-section (1) shall define the
limits of the area to be included in or excluded fr om a market area, or of the
market area to be amalgamated into one, or of the a rea of each of the markets
to be de-established, as the case may be, and shall also specify the period
which shall not be less than six weeks from the dat e of publication of the
notification within which objections or suggestions , if any, may be received
by the State Government.
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(3) Any person likely to be affected by the notificatio n issued under
sub-section (1) may, submit his objections or sugge stions in writing to the
State Government within the period specified in the notification.
(4) Objections and suggestions received under sub-secti on (3) within
the stipulated period shall be considered and decided by the State Government
and thereafter the State Government may, by notification,-
(a) include the area or any part thereof in the ma rket area or
exclude it therefrom;
(b) constitute a new Committee for the market area amal gamated;
or
(c) split up an existing market area and constitut e two or more
Committees for such areas, as the case may be; or
(d) to de-establish a market.
(5) Where a notification under Sub-Section (4) has been issued
excluding any area from the market area and includi ng such area in other
market area, the State Government shall, after cons ulting the Board and the
Committee concerned frame a scheme to determine wha t portion of the assets
and other properties vested in one Committee shall vest in the other
Committee and in what manner the liabilities of the Committees shall be
apportioned between the two Committees and such sch eme shall come into
force on the date of publication of the scheme in the Official Gazette.
21. Market yards, sub-market yards, farmer’s consum er’s and
private market yards.-(1) In every market area, there may be -
(i) market yard managed by the Committee;
(ii) one or more than one sub-market yards managed by the
Committee; and
(iii) private market yards, private markets farmer s and consumer
markets managed by a person other than a Committee.
(2) The Board may with the prior approval of State Government, by
notification, declare any specified place including any structure, enclosure,
open place, or locality in the market area to be a market yard or sub-market
yards for the notified market area.
22. Establishment of private yards, and direct purc hase of
agricultural produce from agriculturists.- Any person who desires to
establish private yard for the purchase of agricult ural produce direct from
agriculturist, or for providing infrastructure facilities, in any market area for-
(a) the process of the notified agricultural produce;
(b) the trade of notified agricultural produce of particular specification;
(c) the export of notified agricultural produce; and
H. P. AGRICULTURAL AND HORTICULTURAL PRODUCE MARKETING 17
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(d) the grading, packing and transaction in other way by value addition
of notified agricultural produce,
shall make an application for obtaining licence in accordance with the
provisions of section 25 of this Act.
23. Establishment of consumer’s or farmer’s markets and
creation of post harvest management facilities by t he farmers/
agriculturists.- (1) Consumer’s or farmer’s market may be establishe d by
developing infrastructure as may be prescribed, by any person in any market
area and producer may, himself sell his agricultura l produce direct to the
consumer in such market area, in the manner as may be prescribed.
(2) Market service charge shall be collected on sale of agricultural
produce by the seller and shall be remitted to the proprietor of the consumer
market.
(3) Save as otherwise provided in this Act, no market f ee shall be
leviable on the transactions undertaken in the consumer’s or farmer’s market.
(4) Notwithstanding anything contained in this Act, any farmer and
agriculturist may, for his bonafide use, create pos t harvest management
infrastructure facilities at the farm level such as grading, standardization, pack
houses, storages (including cold storages), primary processing of agricultural
produce and other post harvest management facilities for which the Central or
the State Government may provide different scheme s hall be implemented
along with the scheme under horticultural technolog y mission being executed
by the Department of Horticulture through Directora te of Marketing and
Inspection, the Government of India.
24. Contract farming.- No person shall undertake contract farming
unless registered under section 40 of this Act, and shall have to enter into an
agreement with contract farming producer on such fo rm and in such manner
as may be prescribed.
25. Grant and renewal of license of private yard, c onsumer’s and
farmer’s market.- (1) Any person who under section 22 desires to purchase
notified agricultural produce direct from the agric ulturists or the producer or
wishes to establish a private market yard or under sub-section (1) of section
23 desires to establish consumer or farmer market i n one or more than one
market area, shall apply to the Managing Director o f the Board for grant or
renewal of license, as the case may be, for such pe riod, in such form, on such
conditions and on payment of such fees as may be prescribed.
(2) Application received under sub section (1) for grant or renewal of
license may be accepted or rejected for the reasons to be recorded in
writing provided that a license shall not be granted or renewed if, -
(i) the Committee dues are outstanding against the applicant;
(ii) the applicant is a minor or not bonafide;
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(iii) the applicant has been declared defaulter under the Act and the
rules and bye-laws made thereunder;
(iv) the applicant having been declared guilty in any cr iminal case
and convicted by imprisonment;
(v) the State Government is satisfied that granting or renewal of
license to the applicant is not going to promote th e interest of
the producers; and
(vi) there is any other reasons which the Managing Direc tor of the
Board may consider to be against the interest of th e producer or
the consumer.
26. Power to cancel or suspend license.- Subject to the provisions of
this Act, any license issued or renewed under section 25, may be suspended or
cancelled by the Managing Director of the Board, after affording the holder of
such license the opportunity of being heard, on any of the following grounds:-
(a) if the license has been obtained through willful
misrepresentation or fraud; or
(b) if the holder of the licence or any of his servant or any person
acting on his behalf, commits a breach of any of th e terms or
conditions of license; or
(c) if the holder of the license in combination with ot her license
holder commits any act or abstains from carrying on his normal
business in the market area with the intention of w illfully
obstructing, suspending or stopping the marketing o f notified
agricultural produce in the market yard/ sub- market yard and in
consequence whereof the marketing of any notified a gricultural
produce has been obstructed, suspended or stopped; or
(d) if the holder of the license has become an insolvent; or
(e) if the holder of license incurs any disqualificatio n as may be
prescribed; or
(f) if the holder of the license is convicted of any of fence under
this Act, then within one year of the conviction if the
conviction, is for the first time, and within three years for
subsequent conviction.
27. Regulation of marketing of notified agricultura l produce.- (1 )
No person shall, except in accordance with the prov isions of this Act or rules
or bye-laws made thereunder,-
(i) use any place in the market area for the marketing of notified
agricultural produce; and
(ii) operate in the market area as a market functionary.
(2) Nothing in sub-section (1) shall apply to the follo wing sale or
purchase of such agricultural produce,-
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(DEVELOPMENT AND REGULATION) ACT, 2005
(i) where the sale is made by the producer himself to a ny person
for his domestic consumption in quantity upto the p rescribed
limit;
(ii) purchase or sale of which is made by a petty trader as may be
prescribed; and
(iii) purchase of which is made by an authorized f air price shop
dealer from the Food Corporation of India, the Stat e
Commodities Trading Corporation or any other agency or
institution authorized by the State Government for distribution
of the essential commodities through the Public Dis tribution
System.
28. Sale of notified agricultural produce in the ma rket.- (1) All
notified agricultural produce shall ordinarily be s old in the market yards, sub-
market yard or in the private yards of the license holder, subject to the
provision of sub-section (2):
Provided that notified agricultural produce may be sold at other places
to a license holder permitted in this behalf under sections 22 and 23 of this
Act:
Provided further that it may not be necessary to br ing agricultural
produce covered under contract farming to the marke t yard, sub market yard
or private yard and such agricultural produce may b e directly sold to Contract
Farming Sponsor from farmer’s fields.
(2) The price of the notified agricultural produce, brought for sale into
the market yard, shall be settled by open auction o r by any other transparent
system as may be prescribed and no deduction shall be made from the agreed
price on any account whatsoever from the seller :
Provided that the price of the notified agricultural produce in the private
yards shall be settled in the manner as may be prescribed.
(30) Weighment or measurement or counting of all th e notified
agricultural produce so purchased shall be done by such person and in such
manner as may be provided in the bye-laws.
CHAPTER-IV
ESTABLISHMENT, CONSTITUTION, POWERS AND
FUNCTIONS OF THE COMMITTEE
29. Establishment of the Committee.- (1) The State Government
shall, by notification, establish a Agricultural Pr oduce Market Committee for
every notified market area and shall specify its headquarter.
(2) Every Committee established under sub-section ( 1) shall be a body
corporate, having perpetual succession and a common seal, may sue and be
sued in its corporate name and subject to the provi sions of section 78, be
competent to acquire and hold property both moveabl e and immovable and to
lease, sell or otherwise transfer any such property which may have become
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vested in, or been acquired by it, and to contract and to do all other things
necessary for the purposes for which it is established:
Provided that no Committee shall permanently transf er any
immovable property except in pursuance of a resolut ion passed in a meeting
specially convened for the purpose by a majority of not less than three-fourth
of the members of the Committee and with the prior approval of the Board.
30. Constitution of the Committee.- (1) A Committee shall consist
of sixteen members of whom six shall be ex-officio members and ten non-
official members.
(2) Ex- officio members:-
(i) Deputy Commissioner - Vice Chairman;
(ii) Dy. Director of Agriculture;
(iii) Dy. Director of Horticulture;
(iv) Dy. Director of Animal Husbandry;
(v) In charge, Krishi Vigyan Kendra; and
(vi) Secretary of the Committee.
(3) The non-official members shall be appointed by the State
Government out of a panel of names given by the Dep uty Commissioner
concerned equal to twice the number of vacancies to be filled up, in the
manner provided here under:–
(i) nine non-official members from the producers o f the notified
market area; and
(ii) one non-official members from the traders reg istered under
section 40, from the notified market area.
31. Term of office of the member of the Committee.- (1) Subject to
the provisions of section 33, every non-official me mber of the Committee
shall hold the office during the pleasure of the State Government.
(2) The term of an ex-officio member of the Committ ee shall come to
an end, as soon as, he ceases to hold the office by virtue of which he was
nominated.
32. Disqualifications of members of the Committee.- No person shall
be eligible to become a member of the Committee, if he incur any of the
disqualifications specified under section 6 of this Act.
33. Removal of members of the Committee.- The State Government
may, at any time during the period of his office, r emove, by notification, any
member, if such member has, in its opinion, been gu ilty of misconduct or
neglect of duty or has lost the qualifications on t he strength of which he was
nominated:
Provided that before thExcerpt shown. Open the full act in Lexace.