LexThe KARNATAKA AGRICULTURAL PRODUCE MARKETING (REGULATION AND DEVELOPMENT) ACT, 1966
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THE KARNATAKA AGRICULTURAL PRODUCE MARKETING
(REGULATION AND DEVELOPMENT) ACT, 1966
ARRANGEMENT OF SECTIONS
Statement of Object and Reasons
Sections:
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
ESTABLISHMENT OF MARKETS
3. Notification of intention of regulating the marketing of specified agricultural produce in
specified area.
4. Declaration of market area and of regulation of marketing of specified agricultural
produce therein.
5. Alteration of market area and of items of regulated agricultural produce.
6. Markets, market yards, market sub-yards, sub-markets and sub-market yards.
7. Establishment of markets.
8. Control of marketing of agricultural produce.
CHAPTER III
CONSTITUTION OF MARKET COMMITTEES
9. Establishment of market committee and its incorporation.
10. Constitution of the first market committee.
11. Constitution of second and subsequent market committees.
12. Provisions for elections.
13. Superintendence, direction and control of elections.
13A E-commerce platform
14. Constituencies for election of certain members.
15. Qualification for candidates for election.
16. Disqualifications for membership.
17. Disqualification of sitting member.
18. Constituency or institution failing to return representative.
19. Prohibition of simultaneous membership.
20. Determination of validity of election.
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21. Grounds for declaring election to be void.
22. Grounds for which a candidate other than the returned candidate may be declared to
have been elected.
23. Procedure in case of an equality of votes.
24. Corrupt practices.
25. Other orders to be made by the Civil Judge.
26. Appeal against orders of Civil Judge.
27. Publication of names of elected members.
28. Casual vacancies.
29. Prohibition of canvassing in or near polling stations.
30. Penalty for disorderly conduct in or near polling station.
31. Penalty for misconduct at polling station.
32. Maintenance of secrecy of voting.
33. Officers, etc., at elections not to act for candidates or influence voting
34. Breaches of official duty in connection with elections.
35. Removal of ballot papers from polling stations to be an offence.
36. Other offences and penalties therefor.
37. Prosecution of certain offences.
38. Term of office of members.
39. Commencement of term of office.
40. Resignation of members.
41. Election of Chairman and Vice-Chairman.
42. Term of office of Chairman or Vice-Chairman.
43. Vacancy in office of Chairman and Vice-Chairman.
44. Motion of no-confidence.
45. Leave of absence to Chairman and Vice -Chairman and consequences of absence
without leave.
CHAPTER IV
CONDUCT OF BUSINESS
46. Powers and duties of Chairman.
47. Powers and duties of Vice-Chairman.
48. Meeting of the market committee.
49. Quorum and procedure at meetings.
50. Modification or cancellation of resolutions.
51. Minutes.
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52. Confirmation of minutes.
53. Interpellation and resolutions.
54. Bye-laws to regulate detailed procedure at meetings.
55. Mode of making contracts.
56. Powers, functions and duties of the Secretary.
57. Acts of market committee, etc., not to be invalidated.
CHAPTER V
STAFF OF THE MARKET COMMITTEES
58. Appointment of Secretary and technical staff to the market committee.
59. Absorption of staff of market committees in Government service.
60. Omitted.
61. Appointment of other staff of market committee.
61A. Reservation of posts in appointments
62. Karnataka State Marketing Service,etc.
CHAPTER VI
POWERS AND DUTIES OF MARKET COMMITTEES
63. Powers and duties of market committee.
63A. The market committee and Secret ary to exercise powers and functions under the
Karnataka Act Nos.22 of 1964, 14 of 1976 and 20 of 1985.
64. Appointment of sub-committees.
64A. Duties and responsibilities of a private market yard licencee.
64B. Constitution of revolving fund.
64C. Application of the revolving fund.
64D. Establishment of Market Development Assistance Fund
64E. Application of Market Development Assistance Fund
65. Levy of market fees.
65A. Power of market committee to impose penalty.
66. Power to order production of accounts and Power of entry, inspection and seizure.
67. Power to stop vehicles, etc.
68. Power to borrow.
69. Acquisition of lands.
70. Composition of offences.
71. Power to write off irrecoverable amount.
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CHAPTER VII
REGULATION OF TRADING
72. Grant of licences.
72A.Establishment of private market yards and direct purchase from agriculturist or
from producer.
72B.Establishment of farmer - consumer market for direct sale by the producer.
72C.Grant /Renewal of licence of private market yard and farmer-consumer market.
72D.Power to cancel or suspend licence.
72E.Appeal.
73. Power to cancel or suspend licences.
74. Appeal.
75. Payment of Price.
76. Sale of agricultural produce.
77. Agreement of sale.
77A. Payment of price of notified agricultural produce by the traders.
78. Commission agent's commission and responsibility.
78A. Additional Payment etc., by Commission Agent in case of default.
78-B. Responsibility of Warehouse service provider
79. Prohibition of certain collections.
79A. Market charges by whom payable.
80. No. deductions in weight or payment other than those specified.
81. Reports by market functionaries.
81A. Reports by private market licencee, farmer - consumer market licencee.
82. Assistance by the market functionaries.
82A. No market functionary to participate in strike, etc.,
83. Production of account books, etc., by market functionaries.
83A. Best of judgment assessment of market fee.
84. Provision for settlement of disputes.
84A. Provision for settlement of disputes between producer, buyer, seller, private
market licensee, licensee for direct purchase or farmer-consumer market licensee.
85. Security by traders.
86. Security by commission agents.
87. Deposit of cash security in Bank.
88. Charge on security and refund of security deposit.
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89. Power of committee and Chairman to impose penalties.
CHAPTER VIII
THE MARKET FUND
90. Market fund, its custody and investment.
91. Contribution to the consolidated fund of the State.
92. Contribution to State Agricultural Marketing Board.
93. Purposes for which the market fund shall be expended.
94. Honorarium and travelling allowances to the Chairman and the Vice-Chairman
95. Manner of preparing budget, etc.
CHAPTER IX
SPECIAL COMMODITY MARKETS
96. Establishment of independent markets and market committees for special
commodities.
CHAPTER X
MANDAL PANCHAYATS AS AGENTS OF MARKET COMMITTEES
97. Mandal Panchayats as agents of market committees.
98. Grants and loans to Mandal panchayats.
99. Effect of entrustment of powers and functions to Mandal Panchayats.
CHAPTER XI
STATE AGRICULTURAL MARKETING BOARD
100. State Agricultural Marketing Board.
101. Composition of the State Marketing Board.
102. Publication of the names of the elected members of the Board.
103. Determination of the validity of election.
104. Cessation of membership of elected members of the Board.
105. By-election.
106. Term of office of the members of the Board.
106A. Sitting fees and allowance to Chairman, Vice-Chairman and other members.
107. Powers and duties of the Chairman and the Vice-Chairman.
108. Conduct of business of the Board.
109. Grants by the State Government.
109A. Functions of the Managing Director.
110. Marketing Development Fund
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110A. Power to borrow.
111. Purposes for which the Marketing Development Fund shall be expended.
112. Functions of the Board.
113. Provisions of the Act and Rules to apply to the Board.
CHAPTER XII
PENALTIES
114. Penalties for evasion of payment of fee, etc.
115. Liability of accused to pay fee, cess or other amount.
116. Power of Magistrate to recover summarily fee, or other amount.
117. Penalty for contravention of section 8.
117A. Penalty for contravention of section 66.
117B. Penalty for contravention of section 75.
118. Penalty for contravention of sections 72A, 72B, 79 and 80.
118A. Penalty for contravention of section 78.
119. Penalty for failure to obey order under section 123.
120. Penalty for contravening the provisions of section 123 or 124.
121. Penalty for contravention of section 125.
122. General provisions for punishment of offences.
CHAPTER XIII
CONTROL
123. Inspection, inquiry, submission of statements, etc.
124. Duty of officers and members to furnish inform ation to Director of agricultural
Marketing, authorised officers and State Government.
125. Seizure of account books and other documents.
126. Power of State Government to call for proceedings of ma rket committee and to pass
order thereon.
126A. Power of the Government to give direction to the market committee, private market
licensee and farmer - consumer licensee.
127. Supersession of market committee.
128. Liability of members , officers and employees of market committee for loss, waste,
misappropriation, etc.
129. Liability of Chairman, Vice-Chairman and members for removal from office.
130. Administrator to exercise powers and perform duties of market committees not validly
constituted or in the working of which a deadlock is created.
131. Recovery of sums due to Government from market committee or Board.
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CHAPTER XIII-A
NATIONAL INTEGRATED PRODUCE MARKET
131A. Establishment of National Integrated Produce Market etc.,
131B. Removal of difficulties.
CHAPTER-XIII-B
Contract Farming
131C. Procedure and Form of contract farming agreement.
Chapter XIII-C
E-Trading
131D. Establishment of Spot Exchange.
131E. Reports to be submitted by the spot exchange licensee.
131F. Power to cancel or suspend spot exchange licenses.
131G. Redressal of disputes.
131H. Bar of Jurisdiction on Civil Courts.
131 I. Penalty for contravention of section 131D.
131J. Cognisance of Offence.
CHAPTER XIII-D
E-Commerce Platform
131-K. Establishment of E-Commerce Platform
131-L. Reports of E-commerce Platform Licensee
131-M. Power to cancel or suspend e-commerce license
131-N. Appeal
131-O. Redressal of disputes
131-P. Penalty for contravention of section 131-K
CHAPTER XIV
MISCELLANEOUS
132. Recovery of sums due to market Committee, Board or the Seller.
133. Power ro exempt certain class of C o-operative Societies etc. from the provisions of
Act.
134. Provisions of Act not to apply to Central and State Governments.
135. Proof of entries in market committee's or Board's registers, etc.
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136. Chairman, Vice -Chairman, members, officers and servants of market committee or
Board to be public servants.
137. Bar of suit or other legal proceeding in absence of notice.
137A. Appeal.
138. Powers and duties of police officer.
139. Duty of local authorities to give information and assistance.
139A. Duty of officers of the Departments to give information and assistance.
140. Delegation of powers of State Government and Director of Agricultural Marketing.
141. Protection to persons acting in good faith.
142. Effect of mere alteration of limits of market area.
143. Denotification of a market area and its consequences.
144. Amalgamation of market committees.
145. Division of market area into two or more separate market areas.
146. Rules.
147. Regulations.
148. Bye-laws.
149. First bye-laws on the establishment of markets.
150. Director of Agricultural Marketing power to direct the making or amendment of bye -
laws.
151. Power to make Standing Orders.
152. Orders for bringing this Act into force.
152A. Power to amend the Schedule.
153. Rules, orders and notifications to be laid before legislature.
154. Repeal and savings.
154A. Transitory Provisions.
155. Power of state Government to transfer assets, etc., in cases of market committees
constituted for excluded areas under repealed Acts.
156. Amendment of Karnataka Act 16 of 1958.
157. Amendment of Karnataka Act 11 of 1959.
SCHEDULE.
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STATEMENTS OF OBJECTS AND REASONS
I
Act 27 of 1966. - This Bill is intended to provide for a unifo rm law relating to the better
regulation of buying and selling of agricultural produce and the establishment of markets for
agricultural produce throughout the new State of Mysore repealing and replacing the
following Acts which are in force in the several areas:-
(1) The Bombay Agricultural Produce Markets Act 1939 (Bombay Act 22 of 1939) as in
force in the Bombay area;
(2) The Madras Commercial Crops Markets Act, 1933 (Madras Act 20 of 1933) as in
force in the Madras Area and as in force in Bellary District;
(3) The Coorg Agricultural Produce Markets Act, 1956 (Coorg Act 7 of 1956) as in force
in the Coorg District;
(4) The Hyderabad Agricultural Market Act, 1339F (Hyderabad Act 2 of 1339F) as in
force in the Hyderabad Area;
(5) The Mysore Agricultura l Produce Markets Act. 1939 (Mysore Act 16 of 1939) as in
force in the Mysore Area.
This Bill has been prepared taking into consideration the suggestions of the Government
of India that there is need for reorienting the pattern of regulation of markets so as to
effectively regulate the sale and purchase of agricultural produce.
Among other things, provision is made in this Bill for-
(i) defining 'agriculture produce' to include all produce of agriculture, animal
husbandry, apiculture, horticulture or pis sciculture, forest produce and any other produce,
live-stock and poultry;
(ii) notifying the intention of Government to regulate the purchase and sale of
agricultural produce in specified area and declaration of market area and of market yard;
(iii) establishment of market committees for trading in specified kinds of agricultural
produce and also separate market committees within the same market area for trading in
any particular kind of agricultural produce;
(iv) representation on the market committee t o purchasers of agricultural produce,
representatives of the purchasers' co -operative societies, representatives of co -operative
marketing and processing societies, municipalities, taluk boards and the Central
Warehousing Corporation or State Warehousing Corporation;
(v) levy and collection of market fees by the market committee;
(vi) constitution of market committee funds and Central Market Fund;
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(vii) conferring borowing powers on market committee;
(viii) appointment of Government servants as Secretar ies, Assistant Secretaries,
Technical Accounts and Audit Staff of Market Committees to ensure efficient administration
and control of market;
(ix) inquiry or inspection by the Chief Marketing Officer; and
(x) suspension of market committee for failure to perform duties.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 30 -3-1963 as No.
47)
II
Amending Act 19 of 1969.- The Karnataka Agricultural Produce Marketing (Regulation)
Act, 1966, came into force on 1st May, 1968. Section 154( 1) of the Act repeals the previous
Acts on the subject in force and provides for the continuance of the market committees
constituted under those Acts until the constitution of market committees under the new Act.
By this provision it was intended to bring into existence elected market committees under the
new Act in place of the old market committee. But in Marularadhya -Vs- Regulated Market
Committee, Shimoga & Others, 1969 (1) Kar. L.J.533, the High Court of Karnataka has held
that the election of a market committee under Section 11 of the Act should be preceded by
the composition of a nominated market committee under section 10 and that it is only by that
process that an old Market Committee which continues to function under proviso (c) to
Section 154(1) can vacate office. A market committee nominated under Section 10 will hold
office for a period of two years. Government considered that it was not desirable in the
democratic set up to nominate members to all these committees.
Some of the existing committees had not been reconstituted for the last 10 -12 years, and
the pattern of representation on the committees was substantially different from the pattern
prescribed under the new Act and some of the constituencies prescribed under the new Act
were to tally unrepresented in these committees. In many market committees
representatives of the traders were functioning as Chairman which was inconsistent with the
fundamental principles of the new Act. In some of the committees the bodies had ceased to
exist as their period has expired and only the Chairmen were functioning on behalf of the
committees. It will take nearly a year to prepare the voters list, to publish them and to hold
the elections. It was, therefore, decided to terminate the period of offi ce of all the existing
market committees and to appoint administrators for a period not exceeding one year in
place of the existing market committees in order to ensure their proper working.
The administrators will also take immediate action to constitute the market committees
within a period of one year.
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Under the new Act, in respect of every market area, there should be a market and a
market yard, and the market fee can be levied in respect of agricultural produce brought by a
trader or other person in the yard. It was found that in respect of many existing market
areas, the market and market yards had not been duly notified. A removal of Difficulties
Order was therefore issued under Section 152 empowering the Chief Marketing Officer to
issue necessary notifications in this behalf. To place the matter beyond doubt, it was
considered desirable to validate the notifications issued by him.
This opportunity has been taken to make certain clarificatory amendment.
(Published in the Karnataka Gazette (Ext raordinary) Part IV -2A dated 16 -8-1969 as No.
402) (Obtained from L.A. Bill No. 26 of 1969)
III
Amending Act 3 of 1970. - The election to the Market Committee have to be held within
one year from 19th July 1969. It was considered necessary that only occu pants and tenants
cultivating the agricultural lands should be registered as the voters in the agriculturists'
constituencies as this would facilitate preparation of the voters' list without delay.
Where there are more than one Taluk Marketing Societies i n a Taluk it was considered
necessary that any member of the committee of any society might be nominated to the first
Market Committee. It was also considered necessary to provide that all elected Directors
should form an electoral college to elect one fro m among themselves to be member of a
Market Committee in respect of the Taluk Marketing Societies.
It was considered necessary to prohibit a person from being a member of more than one
Market Committee.
Certain necessary clarification amendments were also considered necessary.
An Ordinance was promulgated for these purposes and Bill is intended to replace the
Ordinance.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 12 -1-1970 as No.
17 at page 5. )
IV
Amending Act 20 of 1973. - Under Section 65 of the Act market committee may levy
market fees as prescribed by bye law upto 30 paise per 100 rupees price of the produce
sold.
For developing regulated markets in the State, the International Development Association
has agreed to advance a loan of rupees ten crores to the State Government on the
condition among others, that the maximum market fee to be levied may be one rupee per
one hundred rupees of the price of the agricultural produce sold.
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The loan had to be expeditiously obtained. In view of this urgency and as both Houses of
the Legislature were not in session, the Mysore Agricultural Produce Marketing (Regulation)
(Amendment) Ordinance, 1973 was promulgated. Since the loan would be advanced
through commercial banks, another amendm ent was made to section 90 to authorise
investments by the Market Committees in Scheduled Banks also.
The Bill is to replace the Ordinance.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 30 -8-1973 as No.
690 at page 3.)
V
Amending Act 24 of 1975. - There has been an incessant and continuous demand from
within and outside the Legislature to provide adequate communication facilities to all the
villages in the State in order that the agriculturists may better utilise the facilities of regulated
markets provided under the Act. Inspite of ad -hoc arrangements made from time to time, it
has not been possible to fully meet the said demand for roads in rural areas, due to mainly
lack of regulated flow of funds for the purpose. It is theref ore considered necessary to
provide for levy of a market fee on the sellers also and utilise the proceeds for the
development of rural roads.
Hence this Bill.
(Obtained from File No. LAW 25 LGN 75.)
VI
Amending Act 14 of 1976.- In the existing section 60, the Chief Marketing Officer has to
transfer the Secretary of the Market Committee only if 3/4 of the total number of members of
the Committee vote for such a transfer. Since the Secretaries of the Market Committees are
Government servants, such a legal obligation on the part of the Chief Marketing Officer is not
proper. Hence, section 60 is proposed to be deleted.
In the existing Act, the functions of the Agricultural Produce Market Committees are
limited to regulate buying and selling of agricultural produce. It is felt necessary to help forge
a link between producers with consumers by the establishment of processing units in or
around the Market Areas for fair distribution of processed agricultural produce to the
consumer at reasonable rates, for the benefit of both the producer and the consumer.
In the existing Act, there is no power to exempt any Market Committee levy and collection
of Market Fee in respect of agricultural produce. It is proposed to empower the State
Government to exempt any Market Committee from levying and collecting Market Fees and
sellers in respect of any agricultural produce sold by such sellers in the Market Area. This
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provision is considered necessary in order to prevent large diversion of trade particularly in
the market functioning in the border areas of the State. The less of income on this account is
likely to be made good, many times mere as a result of the stoppage of diversion of trade.
The proposal is to reduce the quantum of contribution by the State Government to the
State Agricultural Marketing Board from the existing rate of five per cent of the total income
of the Market Committees in the State to one per cent of the gross receipts of the Market
Committees during that year by way of Market Fees and Licence F ees. This provision
reduces the burden of financial commitments on the part of the State Government to the
State Agricultural Marketing Board.
Hence this Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 5 -2-1976 as No.
689 at pages 3-4.)
VII
Amending Act 43 of 1976.- In line with the current thinking on the subject it is proposed
to expand the objectives of the Act so as to include within its ambit regulation of grading,
processing, transport, packaging etc.
It is also proposed to provide that wholesale trade in notified agricultural produces can be
conducted only in the market yards and sub -market yards so as to have effective regulation
of trade and to afford on the spot processing and packaging facilities to the traders as well.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 7 -4-1976 as No.
1858 at page 4.)
VIII
Amending Act 47 of 1976. - Section 41 of the Act which deals with the procedure for
election of the Chairman and Vice- Chairman does not provide for what should happen when
the meeting cannot be concerned within the prescribed time limit, or having been convened
does not meet for some reason or other. This results in a stalemate, much to the detriment
of the functioning of the Committee. It is necessary to amend this section making suitable
provisions.
Section 133 of the Act which provides exemptions, permits exemptions only in favour of
such class of societies of which all members are either agriculturists or primary producers of
any notified agricultural produce. Recently the definition of the word "Marketing" in the Act
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has been enlarged. In view of this other co -operatives also will have to be brought within the
exemption clause. It is proposed to do so.
Hence this Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 24 -5-1976 as No.
2815 at page 5.)
IX
Amending Act 17 of 1980. - It is proposed to specify in a schedule the agricultural
produces, the marketing of which are to be regulated in the market areas in the State. It is
also provided to treat the market committees as local authorities for all purposes. Section 10
and 11 are proposed to be amended providing for the reservation of one seat among the
agriculturists constituency for the Scheduled Castes and Sche duled Tribes in all the market
committees and power is also taken to nominate one person on all the market committees
who shall be as far as possible a person belonging to the Scheduled Castes and Scheduled
Tribes.
Power is taken to notify the classes of officers and servants specified by the Government
as officers and servants of the State, and to constitute a separate service for them. Provision
is also made to advance loans by the market committees which are financially sound to the
other needy market committees and the State Agricultural Marketing Board. It is proposed to
validate the levy and collection of market fees from the seller since service corers of rupees
is to be refunded in view of the recent judgment of the High Court. The refund would have
considerably affected the finance of the State. It is now proposed to empower the market
committees to levy market fee on the buyers only at a rate not exceeding two per cent of the
price of the agricultural produce brought. Some consequential amendments are also
effected. It is also proposed to increase the rate of commission from 1 1/2 per cent to 2 per
cent and in case of fruits and vegetables 4 per cent. Providing facilities for the transport of
agricultural produces to the market yard is made as one o f the obligatory duty of the market
committees. Provision is made to amalgamate two or more market areas into to one single
market area. Since the Legislative Council was not in session, an Ordinance was
promulgated and hence this Bill to replace the said Ordinance.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 24 -9-1979 as No.
955 at page 18.)
X
Amending Act 4 of 1982. - The Bill seeks to validate certain acts of the Chief Marketing
Officer and the market committees in the matter of levy and collection of market fees, the
making of bye -laws which were vitiated only due to purely technical and Procedural
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irregularities. The Bill also seeks to vest the control of elections in the matter of cancellation
of calendar of events or postponement of poll in the Government.
The other main features of the Bill are -
(a) Where there is an alteration in any market area or the notified agricultural produce
relating thereto but the market or sub -market continues to be the same, it is provided that it
is not necessary to notify the market or sub-market etc., again.
(b) the CMO is given the power to cancel the allotment of sites made for market
committees for reasons to be recorded in writing.
(c) the Market Committees are required to make reservat ion of posts in favour of SCs,
STs, and other backward classes.
(d) the market fee on cattle is to be collected, on the basis of number and not on their
value.
(e) Market fee is made payable on the purchase of wood from the State or Central
Government.
(f) CMO is empowered to revise the contributions to be made to the consolidated fund of
the State by the market committees for services rendered by Government.
(g) Some other incidental and minor matters.
Two ordinances were promulgated in this behalf. This Bill seeks to replace the said two
Ordinances.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 6-2-1982 as No. 89
at page 7.)
XI
Amending Act 2 of 1984. - In the Karnataka Marriages (Registration and Miscellaneous
Provisions) Act, 1976 (Karnataka Act 2 of 1984) certain consequential amendment were
made to the Karnataka Agricultural Produce Marketing (Regulation ) Act, 1966 (Karnataka
Act 27 of 1966.
XII
Amending Act 35 of 1986. - In the Course of implementation of Karnataka Ag ricultural
Produce Marketing (Regulation) Act, 1966 the Market Committee and the Department of
Marketing have felt the need for amendments to the existing provisions of the Act. It is also
found necessary to add certain provisions to the Act by way of ame ndment to avoid leakage
in market fees and effective regulation of trade in the notified commodities. One of the
important amendments is regarding charging commission on Commission Agents. At
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present the Commission Agents are recovering their commission from the sellers at 2%.
Most of the Chairmen of the Agricultural Produce Marketing Committees who are members
of the Karnataka State Agricultural Marketing Board have informed that even though statute
restricts the commission charge at 2%, the Commission Agents in practice collect more from
the agriculturists as most of the producers/sellers are illiterate. It is also felt necessary to
define commission sales and to provide penal provisions.
2. The amendments now proposed seek to over -come some of the pr actical difficulties
faced by Market Committees in the State. Certain modifications in the existing provisions of
the Act have become necessary due to absorption of the employees of the Market
Committee in Government service with effect from 1.3.1982.
3. Hence this bill.
(Obtained from File No.LAW 48 LGN 86) (L.A. Bill No 36 of 1986.)
XIII
Amending Act 29 of 1987. - It is considered necessary to amend the Karnataka
Agricultural Produce Marketing (Regulation) Act, 1966.-
(i) to restrict the sale and purchase of notified agricultural produce to a market yard,
market subyard or sub -market yard except in cases of certain co -operative societies, and
sale by a retail trader;
(ii) to make provision for disqualification of a commission agent or a market fu nctionary
for membership of a market committee.
(iii) to prohibit moving of a no -confidence motion within a period of one year after the
failure of a similar motion of no-confidence moved earlier;
(iv) to provide for cancellation or suspension of a licence if licensee is in arrears of market
fee or penalty;
(v) to remove the existing classification of traders for the purpose of obtaining security;
(vi) to provide punishment for contravention of section 66.
Opportunity is also taken to make certain consequential amendments.
As the Karnataka Legislative Council was not in session and the matter was urgent, the
Karnataka Agricultural Produce Marketing (Regulation) (Amendment) Ordinance, 1987
(Karnataka Ordinance 5 of 1987) was promulgated.
This Bill seeks to replace the said Ordinance.
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(Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 2 -9-1987 as No.
572 at page 6.)
XIV
Amending Act 6 of 1988. - It is considered expendient further to amend the Karnataka
Agricultural Produce Marketing (Regulation) Act, 1966 (Karnataka Act 27 of 1966) to enable
the Agricultural Produce Marketing Committees to contribute towards the Promotion of
agricultural engineering and research in the state.
As the matter was urgent and the Karnataka Legislative C ouncil was not in session, the
Karnataka Agricultural Produce Marketing (Regulation) (Second Amendment) Ordinance,
1987 (Karnataka Ordinance 6 of 1987) was promulgated.
This Bill seeks to replace the said Ordinance.
(Published in the Karnataka Gazette (E xtraordinary) Part IV -2A dated 23 -1-1988 as No.
53 at page 4.)
XV
Amending Act 14 of 1990.- In the Karnataka State Civil Service Act, 1976 (Karnataka
Act 14 of 1990) certain consequential amendments were made to the Karnataka Agricultural
Produce Marketing (Regulation) Act, 1966.
XVI
Amending Act 16 of 1991. - Having regard to the amendment suggested by the
Committee constituted on 15 -10-87 it is considered necessary to make the following
changes namely;-
(1) To specify, that market area shall not be less than a Taluka and more than a
district.
(2) To enable the market committee to enter into agrement with the owner of any land
or building to purchase such Land or building after getting approval of the Director of
Agricultural Marketing and obtaining a valuation Certificate from the Deputy Commissioner.
(3) To enhance the number of agriculturist, representatives in the market committee
from 9 to 11 and to provide for reservation of one seat for women and two seats for persons
belonging to Scheduled C aste and Scheduled Tribes and consequent to this to omit the
provision relating to nomination of two persons belonging to Scheduled Caste and
Scheduled Tribes.
18
(4) To exclude commission agents from the market committee.
(5) To have one representative eac h from amongst the Co -Operative Market Societies
and the Agricultural Co -Operative Processing Societies carrying on business in notified
agricultural Produce within the market area instead of the representatives of Taluka
marketing Society.
(6) To provide for disqualification for membership of a representative of agriculturist, if
such person was doing business as a trader, commission agent, broker, importer, exporter
till such date not later than five years immediately preceding the date of election.
(7) To provide for disqualification if a person defaults for a period of seven days or
more by failing to pay the sale proceeds or other amount due to seller.
(8) To make it obligatory to hold the election of market committee before expiry of term
of office of members.
(9) To enable the prescribed officer to hold election of Vice-Chairman also which is now
being conducted by the Chairman.
(10) To provide for appointment of an officer to preside over the meeting where a motion
of no confidence is made both against the Chairman and Vice-Chairman.
(11) To provide for one single service by amalgamating the Karnataka State Market
Committee Service and the Karnataka State Marketing Service.
(12) To enable the market committee to grant loans to Co-Operative Marketing Societies
and Agricultural Co-Operative Societies and other Co-Operative Societies dealing in notified
Agricultural Produce within the market area and contribute shares to the Co -operative
Marketing Societies and Agricultural Co -operative processing societies within the market
area and dealing in notified agricultural Produce.
(13) To empower the market committee to take steps for purchase, sale, etc., of
agricultural produce during the disruption of functioning in the market yard or sub -yard, due
to strike.
(14) To enable the market committee to provide, within the market area, any
infrastructural facilities for the benefit of the user's of market.
(15) To empower the market committee and Secretary of market committee to exercise
certain powers und er the Karnataka Municipal Corporations Act, the Karnataka
Municipalities Act, and the Karnataka Zilla Parishads etc., Act.
(16) To raise the market fee in respect of cattle from rupee five per head to five rupees
and in case of sheep or goat from twenty five paise per head to one rupee.
(17) To levy market fee at the rate of eighty per cent in the case of Co -Operative
Societies.
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(18) To specify the maximum commission in the case of coconuts as rupees fifteen per
one thousand and in other cases rupees fifteen per quintal.
(19) To enhance security amount payable by the traders and commission agents from
Rs. 1,000-00 to Rs. 5,000-00 in addition to a continuous Bank guarantee of Rs.10,000 -00 or
an amount equal to two per cent of the annual turn over, whichever is more.
(20) To include Secretary to Government , Co -Operation Department, or his nominee,
Secretary to Government Agricultural Department or his nominee and the Director of
Agricultural Marketing as the members of the State Marketing Board.
(21) To specify the functions of the Board and Managing Director of the Board.
(22) To restore to the State Government the powers of the Director to supersede the
market committee.
(23) To restore to the State Government the powers of the Director to remove Chairman
and Vice-Chairman of the market committee.
(24) To amend the Karnataka Rent Control Act. 1961 to exclude premises of the market
committee from the purview of that Act.
(25) To Amend the Karnataka Public Premises (Eviction of Unauthorised occupa nts)
Act, 1974 to extend the provisions of the Act to premises of market committee.
(26) Certain consequential and incidental changes are also made.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 26 -3-1991 as No.
137 at page 499-501.)
XVII
Amending Act 16 of 1998. - The Karnataka Agricultural Produce Marketing (Regulation)
Act, 1959 stipulates that payment has to be made to the farmers who sell their agricultural
produce, on the very day of the sale of their produce, yet, the market functionaries are found
delaying payment to the sellers and also making unauthorised deductions as commission
out of the sale price.
The subject committee has suggested that the commission agents as also purchasers
should be required to r emit the amount directly to the Market Committee instead of making
payment other than through the Market Committee, so that the Market Committee can make
payments to the farmers immediately and without deductions. Therefore it is considered
necessary to amend the Act suitably and for certain other purposes.
Hence the Bill.
(Obtained from L.A.Bill No.19 of 1997)
XVIII
20
Amending Act 17 of 1998.- Section 11 of the Karnataka Agricultural Produce Marketing
(Regulation) Act, 1966 provides for Constitution of second and subsequent Market
Committees. There was no provision for nomination of members to a Market Committee
except nomination of an officer by the Director of Agricultural Marketing. Since Market
Committees handle huge public funds released by way o f marketing fees, constructive
guidance and vigilance are necessary for proper utilisation of funds for various
developmental activities. In order to ensure this it was considered necessary to nominate
three members by amending section 11. Accordingly th e Karnataka Agricultural Produce
Marketing (Regulation) (Amendment) Ordinance, 1997 was promulgated on 22nd May 1997.
It has now lapsed.
A Bill to replace the said Ordinance was introduced in the last session held during the
year 1997. But it was not taken up for consideration. After promulgation of the said
Ordinance the Government nominated Members to some of the Market Committees.
Meanwhile, the ordinance was questioned in the High Court and the High Court quashed the
ordinance. Against that jud gement, the Government filed writ appeal No. 5052 -5053 of
1997 and in the said appeals the order of the single judge quashing the ordinance was set
aside.
The High Court had directed the State Government in Writ Petition No.18486 of 1997 to
hold election to the offices of the Chairman and Vice -Chairman of the Market Committees
before 30th April 1998. The Bill pending in the Legislative Assembly was not taken up for
consideration even during the last session.
It has become necessary to make nominations to all the Market Committees in the State
before holding election to the offices of the Chairman and Vice-Chairman.
As the matter was urgent and Karnataka Legislative Council is not in session the
Karnataka Agricultural Produce Marketing (Regulation) (Amend ment) Ordinance, 1998 was
promulgated.
Hence the Bill.
(Obtained from L.A.Bill No.12 of 1998)
XIX
Amending Act 22 of 2000. - Note.- By this Act certain obsolete laws were repealed and
certain minor and consequential amendments were made to certain laws including Act 27 of
1966.
(Obtained from L.A. Bill No. 17 of 2000)
XX
21
Amending Act 31 of 2000. - Keeping in view the liberlisation of the economy and
opportunities and challenges to horticulture in meeting the demands of domestic consumers,
there is a n eed to have modern, hygenic, transparent, and profesionally managed markets
with forward linkages to retailers and consumers and backward linkages to producers in
Karnataka. Therefore it is considered necessary to amend the Karnataka Agriculture
Produce Marketing (Regulation) Act, 1966 to provide,-
(i) for establishment of National Integrated Produce Market owned and managed as an
autonomous entity by National Dairy Development Board incorporated under the National
Diary Development Board Act, 1987 (Central Act 37 of 1987);
(ii) for setting up collection centers by NDDB or for financing assisting or supporting
farmers or farmers association in setting up collection center in the State;
(iii) for setting up, supporting or otherwise assisting in setting up distribution channels
and institutions at various places in the State;
(iv) for levy and collection of fees, security deposit, advances and other charges for
services rendered in National Integrated Produce Marketing;
(v) for making regulation by NDDB in connection with ownership, management, etc, in
relating to National Integrated Produce Market;
(vi) that the provisions of the Act or rules made thereunder do not apply to National
Integrated Produce Market;
Certain incidental provisions are also made.
As the matter was urgent and the Karnataka Legislative Council was not in session,
Karnataka Agriculture Produce Marketing (Regulation) (Amendment) Ordinance, 2000 was
promulgated.
This Bill seeks to replace the said Ordinance.
Hence the Bill.
(Obtained from L.A. Bill No. 26 of 2000)
XXI
Amending Act 8 of 2001. - It is considered necessary to amend the Karnataka
Agricultural Produce Marketing (Regulation) Act, 1966 to provide for the following:
(i) Section 10 provides for constitution of the first m arket committee for a period of two
years which may be extended by the state Government for one more year. It is felt
necessary to enhance the maximum period of extension from the existing one year to two
years to manage the Market Committee where an elec tion is not held intime during the
extended period of one year.
22
(ii) Section 44 provides for moving a motion of no confidence against the chairman or
the Vice Chairman of a Market Committee which will be carried only if it is voted by a
majority of not le ss than two -thirds of the members of the market committee. Adhyakshas
and Upadhyakshas of Taluk Panchayats and Zilla Panchayat may be removed by a motion
of expressing want of confidence in them passed by a simple majority. It is appropriate to
have similar provisions in respect of the Chairman and Vice Chairman of market committee
also.
(iii) It is found necessary to have a provision to enable the market committees to
contribute to the floor price scheme and Raitha Sanjeevini Accidental Insurance Scheme
which are beneficial to agriculturists.
Prices of various agricultural commodities are continously falling all over the state. This
has caused great hardship to the agriculturists and has also lead to wide spread agitation.
The agitation has lead to law a nd order problem in certain places. The floor price scheme is
meant to control the falling prices of agricultural commodities. It will go a long way in giving
some relief to the agriculturist. Therefore, the market committees should be empowered to
make contributions to the floor price scheme as early as possible.
Since the matter was urgent and the Karnataka Legislative Council was not in session
the Karnataka Agricultural Produce Marketing (Regulation) (Amendment) Ordinance 2001
(Karnataka Ordinance 1 of 2001) Excerpt shown. Open the full act in Lexace.