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The NAGALAND AGRICULTURAL PRODUCE AND LIVESTOCK MARKETING (PROMOTION AND FACILITATION) ACT, 2020

Nagaland · state statute
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6 	 The Nagaland Gazette, Part -V 	 15, May, 2020 
THE NAGALAND AGRICULTURAL PRODUCE AND 
LIVESTOCK MARKETING (PROMOTION & FACILITATION) 
ACT, 2017 
AN 
ACT 
To provide for establishment improvement development and regulation of markets and 
marketing systems for agricultural produce and livestock in the State of Nagaland including 
processing and export thereof and for matters connected therewith or incidental thereto 
Be it enacted by the Nagaland Legislative Assembly in the ..... year of the Republic of India 
as follows: 
CHAPTER - I: PRELIMINARY 
1. Short title, extent and commencement, 
(1) This Act may be called 'The Nagaland State Agricultural Produce and Livestock 
Marketing (Promotion & Facilitation) Act, 2017". 
(2) It extends to the whole of Nagaland. 
(3) it shall come into force on such date as the State Government may. by notification. appoint. 
2. Definitions. 
In this Act. unless there is anything repugnant in the subject or context 
1)'Ad-hoc buyer" means a buyer registered under Section 85 of this Act; 
2)"Agrieulturat produce" means all produce and commodities, whether processed or 
unprocessed, of agriculture, horticulture. apiculture. sericulture, livestock, including products 
of livestock like fleeces (raw wool), skins of animals etc., as well as forest products excluding 
trees grown on private land, as are specified in the schedule or declared by the Government. by 
notification, from time to time and further includes combination of two or more such produce or 
commodities. 
3)"Agriculturisi" means a person who is an indigenous resident of the notified area 
who is engaged in production of agricultural produce. by himself or by hired labour or otherwise, 
including a tenant engaged in agricultural production; "Agriculturist" also includes association 
of farmers, by whatever name called, registered tinder any law for the time being in force and is 
engaged in aggregation of member t'armers produce including livestock; 

15, May, 2020 	 The Nagaland Gazette, Part- V 	 7 
Explanation: If a question arises as to whether any person is an agriculturist or not. for the 
purpose of this Act. the decision of the Deputy Commissioner shall be final. Further, the 
expressions of land holder and tenant shall have the meaning assigned to them in the respective 
Land Reforms Act of The State. 
4rAct" means NAPLM(P&F) Act. 2017" 
5) Assaying lab" means a laboratory set up. as prescribed in the RulesiBye-lawslguidelinesJ 
instructions, for testing of quality parameters as per the tradable parameters or grade-standards 
or any other parameters notified by the competent authority; 
6) "Board" means the Nagaland State Agricultural Produce and Livestock Marketing Board 
established under Section 96 of this Act. 
7) "Business" means purchase, sale, processing, value addition, storage, transportation and all 
connected activities relating to agricultural and livestock produce. 
8) "Buyer" means a person or a firm or a company or a cooperative Society or a Government 
Agency or a public undertaking or a Corporation or a commission agent, or a combination of 
more than one of these bodies, who himself or on behalf of any other person or agent, buys or 
agrees to buy agricultural and livestock produce as notified. 
9) 'Bye-laws" means, subject to any Rules made by State Government under this Act, the bye-
laws which the Market Committee may. in respect of principal market yard and submarket 
yard(s) or market sub-yard(s) tinder its management, make for the regulation of business and 
conditions of trading therein"; 
10)' Cold storage in relation to market yard means cold storage declared as market sub-yard 
under Section 15 of this Act;. 
I 1)'Comm.ission agent" means a person who buys or sells agricultural produce including 
livestock on behalf of his principal, or facilitates buying and selling at primary and other level of 
transaction, on c-platform or any other mode of transaction and activities ancillary thereto 
keeps it in custody and controls it during the process of its sale or purchase, and collects payment 
thereof, if required, from the buyer and pays it to the seller, and receives by way of remuneration 
a commission or percentage upon the amount involved in such transaction; 
I 2Dcpu1y Commissioner" means the Deputy Commissioner of the District or any Officer 
empowered to discharge the duties of the Deputy Commissioner under the provision of this Act. 
I 3)"Dclincated Market Area" means a geographical area notified under Section 5 for the purpose 
of election of the Members of Market Committee and undertaking marketing related development 
therein; 
14)"Direct marketing" In relation to agricultural produce, means direct wholesale purchase of 
agricultural produce from the farmers by the processors. ex-loaderfun-loaders, bulk buyers, etc. 
outside the principal market yard, sub-market yard, private market yard and market sub-yard 
under Section 16 of this Act 
15)'Electronic trading" means trading of notified agricultural produce including livestock in 
Which registration, auctioning, billing, booking, contracting, negotiating, information exchanging, 
record keeping and other connected activities are done electronically on computer network! 
internet; 

8 	 The Nagaland Gazette, Part-V 	 15, May, 2020 
16) "Electronic trading platform" means electronic platform setup either by State Government 
or its agencies or a person licensed under Section 59 for conducting trading in notified agricultural 
produce including livestock through electronic media or by any means of communication in 
which registration, buying and sellina, billing, booking, contracting and negotiating are carried 
out online through computer network/internet or any other such electronic device: 
17) "Export" means dispatch of agricultural produce to a place outside India under the laws in 
force. 
18) "Exporter" means a person or a firm who or which exports agricultural produce. 
19) 'Import" means bringing agricultural produce from outside to a place in Nagaland under 
the laws in force. 
20) "Importer' means a person or a firm who or which imports agricultural produce from 
outside. 
21) "Farmer-Consumer Market Yard" means market yard established under Section 14 of 
this Act; 
22) "Farmer-Producer Company (FPC)' means a company of farmer-producer members as 
defined in Section IXA of the Indian Companies Act.] 956, including any amendments thereto 
re-enactment thereof and incorporated with the Registrar of Companies; 
23) "Government" means the State Government: 
24) "Governnaent/Administration Agency" means State Agriculture DcpaflrnentlDirectorate. 
Nagaland State Agricultural Marketing Board (NSAMB). Agricultural Produce and Livestock 
Market Committee (APLMC) established or constituted under this Act; 
25) "Licence" means licence granted under the provisions of this Act; 
26) "Licensee" means a person holding a licence issued under the provisions of this Act; 
27) "Livestock" means mithun, cows, buiThlocs , bullocks. hulls, goats and sheep, and includes 
poultry, fish and such other animals, and products thereof, specified in the schedule; 
28) "Managing Director" means Managing Director of the State Agricultural Produce and 
Livestock Marketing Board appointed by the State Government, to exercise and/or perform such 
of'ihe powers and functions ofthe Managing Director or ChiefAdministrator orAdminislr8tor 
or Chief Executive Officer or ex-officio Secretary, or by whatever name it is called, of the 
State Agricultural Produce and Livestock Marketing Board; 
29) "Market" means a market established under section 5 of this Act, which includes market 
area, market yards and sub-market yards and market committee, 
30) "Market area" means area notified under Section 5 of this Act. 
.3 1) 'Market charges" mean and include charges on account of or in respect of. commission. 
weighing, measuring, loading and unloading and carrying, cleaning, drying, sieving, stitching. 
stacking, hiring of bags. stamping. bagging, storing, warehousing, grading, surveying, transporting. 
processing and other activities directly or indirectly connected to the purposes of this Act. 
32) "Market Committee" means the Agricultural Produce and Livestock Market Committee 
established under the provisions of this Act or established under existing regulation. 
33)"Marketing" means all activities involved in the flow of the agricultural produce from the 
production point commencing from the stage of harvest till these reach the ultimate consumers 
viz, grading, processing. storage, transport, channels of distribution:and all other functions involved 
in the process. 

15, May, 2020 	 The Nagaland Gazette, Part- V 	 9 
34)"Sub-market yard" means relation to a market, area means a specified place other than 
market yard and includes any enclosure, building or locality, declared as such in any market area 
by the State Government or NSAMB by notification. 
33)"Market Sub-Yard" means warehousei silos/ cold storage or other such structure or place 
declared to be market sub-yard or deemed to be market yard under Section 15: 
36" Market Yard" in rdiiun to delineated market area includes principal market yard, sub 
market yard and market sub-yard in such delineated market area notified by the Government, 
and managed & operated by the Agricultural Produce and Livestock Market Committee; 
37rNlarket Yard of National importance" means a market yard as notified under Section 12 
of this Act; 
38rNational Agriculture Market (NAM)" means an integrated market, without prejudice to 
any law for the time being in force, where buying and selling of notified agricultural produce 
including livestock and activities incidental thereto are carried out in India possessing marketing 
utility across time and space"; 
39)"Notificd Agricultural Produce and Livestock" means agricultural produce and livestock. 
specified in the schedule of this Act; 
40Over trading" in relation to a trader means the amount exceeding the value of the agricultural 
produce including livestock purchased at any point of time vis-à-vis to the amount of security 
deposited with or the bank guarantee he has ftirnished to the Market Committee; 
41)'Person' includes individual, a co-operative society, a company or firm or an association or 
a body of individuals, whether incorporated or not; 
42rretty Trader" in relation to agricultural produce means a non licensee trader under this 
Act who carries on purchasing or selling of notified agricultural produce in the quantity not 
exceeding of such quantity as specified in this Act and notified by the State Government as 
retail 
43YPrescribed" means prescribed by Rules and/or Bye-laws made under this Act: 
44)4i Private market yard" means such place other than the market yard/sub-market yard in the 
market urea where infrastructure has been developed and managed by a person for marketing of 
notified agriculture produce holding a license for this purpose under Section 13 of this Act. 
45)4'Processing" means any one or more of a series of treatments relating to powdering, crushing. 
deco.rticating, dehusking. polishing, pressing. curing, or any other manual, mechanical, chemical. 
or physical treatment to which raw agricultural produce or its product is subjected to. 
46)'Processing Unit" in relation to Market Yard means processing unit declared as market sub-
yard under Section 15 of this Act; 
47rProccssor" in relation to agriculture produce means a person that undertakes processing of 
any notified agricultural produce on his own accord or on payment of a charge; 
48)"Registration" means registration made under this Act for the purpose as Specified: 
49Regulatioa" means regulation made by the Board under Section 110 in accordance with 
the provisions of this Act; 
50'ketai1 Sale" in relation to a notified agricultural produce means, a sale not exceeding such 
quantity as specified in this Act and notified by the State Government; 

10 	 The Nagaland Gazette, Part-V 	 15, May, 2020 
51)'Revolving Marketing Development Fund" means a non lapsable Fund maintained by 
Managing Director under Section 120(1) of this Act; 
52)'.RuIe" means a rule made under this Act by the State Government. 
53)Secreta" means, the Executive Officer of the Market Committee appointed under Section 
54 of this Act. 
54)"Seller" means a person who sells or agrees to sell agricultural produce including livestock 
for consideration of price; 
55ySchedule" means the Schedule appended to this Act; 
56)'Silo' means silo declared as market sub-yard under Section 15 of this Act; 
57ySpccial Commodity Market Yard" means a market yard as notified under Section II of 
this Act: 
58yState" means a State as specified in 1st Schedule of the Constitution of India; 
59yTrader" means, a person who buys notified agricultural produce including livestock either 
for himself or as an agent of one or more persons for the purpose of selling, processing, 
manufacturing or for any other purpose, as the case maybe, except for the purpose of domestic 
consumption 
60)'7ransportation" means conveying agricultural produce by a vehicle drawn by man, animal 
or any other power from one place to another in the course of its marketing. 
61y"Transloader/unloader means a person or a firm who or which transports the agricultural 
produce. 
62)" Value addition" means any activity performed like processing, grading, packaging etc. ,in 
relation to a agricultural produce by which the market value of the produce is increased; and 
63)"Year" means the year as may be notified by the Government from lime to time, 
64)%Varetwuse" in relatiumi to Market Yard means warehouse declared as marker sub-yard 
under Section 15 of this Act. 

15, May, 2020 	 The Nagaland Gazette, Part- V 	 11 
CHAFFER-IL: ESTABLISHMENT OF MARKETS 
3. Notification of intention of regulating marketing of specified agricultural 
produce and livestock. 
(I) The Government may. by notification in the official gazette, declare its intention of 
regulating the marketing of such agricultural produce and livestock in the State, as may be 
specified in the notification. The notification may be brought to the notice of the interested 
public by publishing in local language &. English on widely circulated platforms/media like 
newspapers, websites and such other formats. 
Provided that no area within the limits of a municipality shall be included for regulation under 
this Act except after consultation with the Municipal Board or Municipal Council, as the case 
may he. 
(2)A notification under sub-section(l)shall state that any objection or suggestion which 
may be received by the State Government or the Managing Director or the Member Secretary 
within a period of not less than 45 days, to be specified in the notification. shall be considered 
by the State Government or Managing Director or Member-Secretary. 
(3) Government may hold consultations with Local bodies, including Panchayat Raj 
Institutions (PRis) and autonomous district councils in North-Eastern Region, who own and 
operate rural periodical markets or haats or any other such markets for marketing of agricultural 
produce and livestock within theirjurisdiczional area, to bring such markets under the regulation 
of this Act, so as to develop these markets to efficiently function as marketing platform nearest 
4. Declaration of whole State as one unified market area. 
Subject to the notification made under Section 3 and after considering such objections 
and suggestions as may be received from any source before expiry ofsuch period, the Government 
may. by another notification. declare the whole Slate as one unified market area specified in the 
notification issued under Section 3 for the purpose of regulation of marketing of all or any of the 
kinds of aricu1tural produce and livestock specified in the notification issued under Section 3 
of this Act. 
Explanation: The area so declared shall he a single unified market area for the whole State for 
regulation of marketing of notified agricultural produce and livestock. 
5. Notification of delineated market area 
(1) Subject to the provision made in Sections 3 and 4 the Government may, by further 
notification, delineate geographical area for a Market Committee as a delineated market area 
for the purpose of election of the Members of such Market Committee and undertaking 
developmental activities therein. 
Explanation: The Market Committee shall notregulate marketing of notified agricultural produce 
and livestock in its delineated market area. The Market Committee will enforce regulation on 
marketing of notified agricultural produce and livestock within the principal market yard, sub-
market yard(s) and market sub-yard(s). 

12 	 The Nagaland Gazette, Part-V 	 15, May, 2020 
(2) Subject to the procedure specified in Sections 3 and 5,G overnment/Administration 
may, at any time, by notification, exclude from any delineated market area, any area or include, 
therein an additional area or split one delineated market area in two or more such areas or 
amalgamate two or more such areas in one delineated market area, or may exclude any notified 
agricultural produce and livestock from regulation, or include any agricultural produce and 
livestoek, hitherto not regulated. for regulation under this Act 
(3) After the alteration of delineated market area or the items of agricultural produce and 
livestock, if any, under Section 6, it shall not be necessary for the Managing Director to make 
any,  declaration under this section unless he is of the opinion that it is necessary to declare any 
area, hitherto not declared, as delineated market area of any Market Committee. 
6. Alteration/Amalgamation of delineated market area and of items of 
agricultural produce and livestock. 
(1) Subject to the procedure specified in Sections 3 and 5, Government/Administration 
may, at any time by notification, exclude from any delineated market area, any area or include 
therein an additional area or split one delineated market area in two or more such areas or 
amalgamate two or more such areas in one delineated market area, or may exclude any notified 
agricultural produce and livestock from regulation, or include any agricultural produce and 
livestock • hitherto not regulated, for regulation under this Act. 
(2)After the alteration of delineated market area or the items of agricultural produce and 
livestock, i1 an. under Section 6, it shall not be necessary for the Managing Director to make 
any declaration under this section unless he is of the opinion that it is necessary to dtctare an 
area. hitherto not declared, as delineated market area of any Market Committee 
7. Principal market yard, sub-market yard, market sub-yard, private market 
yard, private market sub-yard, farmer-consumer market yard, private farmer-
consumer market and electronic trading platform. 
(1) 	 Ina State. there may be- (a) principal market yard(s) managed by the Market Committee; 
(b) sub- market yard(s) managed by the Market Committee; 
(c) market sub-yard (s) managed by the Market Committee; 
(d) private market yard(s) managed by a person, holding a licence under Section 11; 
(e) privatemarket sub-yard(s) managed by a person s  holding a licence under Section J; 
(t) 	 farmer-consumer market yard(s) managed by the Market Committee; 
(g) private farmer-consumer market yard(s) managed by a person. holding a licence under 
Section 14: 
(h) electronic trading platforms managed by a license holder 

15, May, 2020 
	
The Nagaland Gazette, Part- V 	 13 
(2) The Government shall, as soon as possible after the issue of notification under Sections 
4 and 5, by a notification, declare any 'place' in the delineated market area as principal market 
yard or submarket yard or marker sub-yard or farmer-consumer market yard. as the case may be., 
managed by a Market Committee, for the purpose of regulation of marketing of notified 
agricultural produce and livestock, expressly or impliedly in physical. electronic or other such 
mode, under this Act. 
Explanation: In this sub-section (2), the expression place' shall include any structure, enclosure, 
open space locality, street including warehouse/silos/pack house/cleaning, grading & packaging 
and processing unit vested in the Market Committee of the delineated market area. 
The Government may, by notification, declare a place'. licensed under Section 79, 
to be private market yard, private market sub- yard, private fanner-consumer market yard, as the 
case may be, for marketing of notified agricultural produce and livestock, expressly or implicdly 
in physical, electronic or other such mode, under this Act. 
Explanation: In this sub-section (3). the expression place' shall include any structure, enclosure. 
open space locality, street including warehouse/silos/pack house/cleaning grading & packaging 
and processing unit vested in the person licensed for the purpose under this Act. 
S. Procedures subsequent to notification under section 6. 
(1) Any Inhabitant of the market area or of the areas affected by the notification issued 
under sub-section (1) of section 6 if he objects to anything contained therein, may submit his 
objections in writing to the State Government within the period specified for this purpose in the 
said notification. 
(2) When the period specified in the said notification has expired and the State Government 
has considered and passed orders on such objection as may have been.submitted to it within 
the said period, the State Government may, by notification- 
(a) include the area or any part thereof in the market area or exclude it there from, or 
(b) constitute a new Market Committee, for the market area amalgamated or 
(c) split up an existing market area and constitute two or more Market Committees for such 
areas, as the case may he; or 
(d) dc-establish the market; or 
(e) publish modified list of agricultural produce robe regulated in the market. 
9. Effect of alteration of limits 
Where a notification under section 6 has been issued excluding any area from the market 
area and including any such area in any other market area, the Slate Government shall after 
consulting the market committee involved, frame a scheme to determine what portion of the 
assets and other properties vested in one market committee shall vest in the other market 
committee and in what manner the liabilities of the market committees shall be apportioned 
between the two market committees, and such scheme shall come into force on the date of 
publication in the gazette. 

14 	 The Nagaland Gazette, Part-V 	 15, May, 2020 
10. Powers of State Government to issue consequential order with respect to 
constitution of Market Committees on alteration of limits, amalgamation or 
splitting up etc., 
1) where a notification under section 6 has been issued, the State Government may pass such 
consequential orders as it may deem fit in respect of: 
(i) where a notification is issued under section 6 excluding an area from any market area and 
such excluded area is not declared to be separate market area. or a notification is issued under 
sob-section (2), including any area within the market area, the market committee constituted for 
such market area before the date of such exclusion or inclusion shall, notwithstanding anything 
contained in this Act. continue to be the market committee for the said market area until the 
reconstitution of such market committee under this Act. 
(ii) in the event of amalgamation of dissolved market committee, the committee-in-charge shall 
consist of the following members, namely:- 
(a) A Chairperson to be nominated by the State Government. 
(b) Five representatives of agriculturists to be nominated by the State Government. 
(e) One representative of Traders to be nominated by the State Government. 
(d) An officer each from the Departments of Agriculture/Agricultural Marketing. 
Horticulture, Animal Husbandry and Veterinary Sciences, Fishery, Cooperation Department 
working in the district to be nominated on the recommendation of the Directors concerned. 
(e) One member of the Wcighrnen operating in the market area holding licence from the Market 
Committee to be nominated by the Department of Legal Metrology and Consumer Protection. 
(1) One reprcsc.ntati co l'ili c Local Authority of the headquarter of the committee (Chairperson 
of Municipal/Town Council). 
(iii) Where in case of split up of a market committee each committee in-charge consisting of a 
Chairperson, five representatives of agriculturist and a representative of traders shall be 
constituted: 
(a) Provided that the Chairperson of the dissolved market committee shall be nominated to be 
the Chairperson of the newly established market committee of which he is a voter or for the 
other market committee. The State Government shall nominate a Chairperson who possess the 
qualifications prescribed in sub-section (1) of Section 20. 
(b) Representative of agriculturists of dissolved market committee shall also be nominated as 
members of newly established market committee and remaining representatives of the 
agriculturists shall be nominated by the State Government who possess the qualifications 
prescribed in the Rules of this Act. 
(c) Representative of trader of the dissolved market committee shall he nominated as a member 
of the newly established market committee and for the other market committee, the State 

14, May, 2020 	 The Nagaland Gazette, Part- V 	 15 
Government shall nominate such licensed trader as representative of traders who possesses the 
qualifications prescribed in the Rules of this Act 
(d) An officer each from the Departments of Agriculture, Horticulture, Animal Husbandry and 
Veterinary Sciences, Fishery, Cooperation Department working in the district to be nominated 
on the recommendation of the Directors concerned. 
(e) One member of the weighmen to he nominated by the Director of Legal Metrology and 
Consumer Protection. 
(1) One representative of the Local Authority of the place where the Market Committee is located 
(Chairperson of Municipal/Town Council). 
The Committee-in-charge constituted under sub-section (I) shall, subject to the control of the 
Managing Director/Member- Secretary, exercise all the powers and perform all the duties of the 
Market Committee under this Act. 
(2) The Provisions of Section 20 shall apply to the Constitution of a Market Committee under 
sub-section(I) as they apply to the constitution of a market committee for a market established 
for the first time, 
11 Establishment and notification of Special Commodity Market Yard". 
(1) Government/Administration may designate any existing market yard established under 
Section 7 (2) as "Special Commodity Market Yard" or establish and notify any market yard as 
"Special Commodity Market Yard" after consideration of such aspects as turnover of particular 
agriculture produce and livestock and special infrastructure requirements therefor. It may be- 
(i) fruits, vegetables & flowers markets, including onion market, apple market, orange niar.ket 
pineapple market, banana market, kiwi market, tomato market, passion fruit market, condiments 
and spices market and other such market; 
(ii) fibre crop market 
(iii) medicinal and aromatic plants market; 
(iv) livestock market including cattle market, piggery rLarket, fish market., poultry market and 
other such market; and 
(v) any other such markets. 
(2) All provisions for and in relation to the Market Committee made in the Act shall 
mutatis mutandis apply to the Market Committee established for "Special Commodity Market 
Yard". 
12. Establishment and notification of "Market Yard of National importance (MN!)". 
Government may designate and notify any existing market yard established under Section 
7(2) as "Market Yard of National importance" or establish and notify any market as "Market 
Yard of National Importance" after consideration of such aspects as total turnover, value, upstream 
catchment area, down-stream number of consumers served and special infrastructure 
requirements 

16 	 The Nagaland Gazette, Part -V 	 15, May, 2020 
therefore: l'rovided that the market yard handling not less than such annual tonnage or such annual 
value, as may be prescribed, may be considered for conferring the status as the Market Yard of 
National Importance". Provided further that out of such annual tonnage or such annual value, .3Oper 
cent may arrive from not less than two other States. 
13. Establishment of private market yard. 
I) Subject to such reasonable conditions and such tee as may he prescribed, the Managing 
Director or the Officer authorized by him may grant a licence to a person to establish a private 
market yard, for trading of notified agricultural produce and livestock. 
(2) The private market yard licensee, or its management committee, by whatever name it 
is called, may register commission agents and other market functionaries to operate in the licensed 
private market yard. 
3) The private market yard licensee, or its management committee, may collect user 
charge on notified agricultural produce and livestock transacted in the private market yard, at 
the rate ad valorem not exceeding the rate as notified by the Government. 
Provided that no user charge shall be collected from agriculturist-seller. 
(4) The private market yard licensee shall cntrihute, of such user charge collection and 
registration fee, to the separate "Revolving Marketing Development Fund' maintained by the 
MD at the rate in percentage at par with Market Committee. 
(5)The MD will spend the money from such Fund under sub -section (4) in development 
of common marketing infrastnicture, skill development, training, research and pledge financing 
and such other activities as will aid in creating an efficient marketing system in the State. 
(6) The private market licensee shall formulate a Standard Operating Procedure (SOP) 
in tune with the Procedures and Guidelines laid down b the NSAMB tbr conduct of business 
and activities ancillary thereto in the licensed private market yard. 
14. Establishment of farmer- consumer market yard (direct sale of agricultural 
produce by farmer to consumer in retail). 
(1) Subject to such terms & conditions and fee, as may he prescribed, the MD may grant 
licence to a person to establish farmer consumer market yard for marketing of specified agricultural 
produce in retail. 
(2) Such farmer-consumer market yard may be established by a person by developing 
infrastructure, as may be prescribed, and at a place accessible to both farmer(s) and consumer(s) 
Provided that the consumer shall not purchase more Than such quantity of agriculture Produce at 
a time in this market, as may he prescribed.: 
(3) The fanner-consumer market yard licensee may collect the prescribed user charge on 
the sale of agriculture produce from the seller and amount so realized shall be retained by farmer-
consumer market yard licensee. 

15, May, 2020 	 The Nagaland Gazette, Part- V 	 17 
Provided further that Government, in public interest. may. from time to time, by notification. 
put ceiling on the rate of collection of user charge. 
15. Declaring warehouse/silos/cold storage or other sub structure orpiace as market sub-yard. 
(I) Save as otherwise provided in this Act, the Government may. by notification, declare 
warehouse/silos/cold storage or other such structure or place with infrastructure and facilities as 
prescribed, to function as market sub-yard. 
Explanation: the expression 'place' under this sub-section shall include any structure, enclosure, 
open space, locality, street including pack house/cleaning grading & processing unit etc 
(2) The owner of such warehouse/cold Storage, or other such structure or 'place', as the 
case may be, desirous of declaration of such place as market sub-yard under sub-section (1). 
shall apply to the Managing Director. in such form and in such manner and such fee, and also for 
such period, but not less than three years, as may be prescribed. 
(3) The licensee of such warchouse!siloalcold storage or other such structure or place, 
may collect user charge on notified agricultural produce transacted at the declared market sub-
yard under Section 15, at the rate ad valorem not exceeding the rate as notified by the Government. 
Provided that no user charge shall be collected from agriculturist-seller. 
(4) A declared market sub- yard licensee shall contribute, of such user charge collection, 
to the separate 'Revolving Marketing Development Fund" maintained by the MD at the rate in 
percentage at par with Market Committee. The Fund will be utilized for the purposes and in the 
manner mutatis mutandis to Section 13(5) of this Act. 
16. Direct marketing (wholesale direct purchase from farmers outside the 
market yard, sub- market yard, private marketvard). 
(I) Collection/aggregation centres in the proximity of the production areas may be set up 
by a person with infrastructure, as maybe prescribed, with linkages to retail chain, or processing/ 
export unit premises, or any other such unit premises as may be prescribed in accordance with 
the provisions of this Act and Rules made thereunder for marketing of notified agricultural 
produce. 
(2) Notwithstanding anything contained under sub-section( 1). direct wholesale purchase 
can also be carried out outside the principal market yard. sub-market yard. market sub -yard. 
private 
market yard by declaring the place of such purchase, without establishment of any permanent 
collection/ aggregation centra, as may be prescribed. 
(3) Direct marketing licensee shall have to maintain records and all accounts relating to 
daily trade transactions and shall submit monthly report, as may be prescribed, to the Licensing 
Authority. 
(4) The Licensing Authority can seek any type of additional intrmation from the direct 
marketing licensee, and can also inspect and issue direction relating to functioning of the wholesale 
purchases and the activities incidental thereto. 

18 	 The Nagaland Gazette, Part-V 	 15, May, 2020 
(5) The direct marketing licensee shall be liable to pay one-fourth of the applicable 
market fee on wholesale purchases made. The licensee shall deposit the due amount towards 
'Revolving Marketing Development Fund" maintained by MD for the month by the 106  day of 
the next month. The Fund will he utilized for the purposes and in the manner mutatis mutandis 
to Section 13 (5) of this Act. 
(6) Notwithstanding anything contained in the Essential Commodities Act. 1955. and 
Control Orders issued thereunder or any other law for the time being in force, the provision of 
stock limit shall not be applicable on such direct marketing licensee purchasing the agricultural 
produce for processing/export to the extent of his/its annual capacity of processing!export. 
However, in case any dispute arises between the provisions of this Act and Essential 
Commodities Act. 1955, the latter shall prevail. 

15, May, 2020 	 The Nagaland Gazette, Part- V 	 19 
CHAPTER-111: CONSTITUTION OF MARKET COMMITTEE 
17. Establishment of Market Committee and its incorporation. 
(I) For every delineated market area there shall be a Market Committee consisting of a 
Chairperson. a Vice-Chairperson and other Members. 
(2) Every Market Committee established under this Act shall be a body corporate by 
such name as the Government mayy, by notification, specify. It shall have perpetual succession 
and a common seal and may sue and be sued in its corporate name and shall, subject to such 
restrictions as are imposed by or under this Act, be competent to contract, acquire, hold, lease. 
sell or otherwise transfer any property, both immovable and movable and to do all other things 
necessary for the purpose for which it is established. 
Provided that no immovable or moveable property the value of which exceeds the prescribed 
limits shall be acquired or disposed of by the Market Committee without the prior permission 
of the MD. 
Provided further that the Managing Director may, for the reason to be recorded in writing, 
revoke such permission before the completion of the acquisition or execution of the deed, as the 
case may he. 
Provided also that Market Committee may.. with the prior approval of the ManagingDirector 
and after obtaining valuation certificate from the prescribed officer, enter into agreement.with 
the owner of any land or building and purchase such land or building. 
(3) Notwithstanding anything contained in any enactment for the time being in force, 
every Market Committee shalt for all purposes, be deemed to be a local authority. 
(4) The Market Committee shall be classified by the Managing Director, subject to the 
prescribed guidelines, considering turnover and other consideration as Managing Director deems 
lit, for the purpose of laying down the norms for staff. establishment expenditure and other 
18. Vesting of property of Local Authority in Market Committee. 
(1) The Market Committee may require a local Authority to transfer to it any land or 
building belonging to the local Authority which is situated within the delineated marker area 
and which, immediately before the establishment of the market yard, was being used by the 
local Authority for the purposes of the market and the local Authority shall, within one month of 
the receipt of the requisition, transfer the land and or building, as the case may be, to the Market 
Committee on such terms as may be agreed between them. 
(2) Where within a period of thirty days from the date of receipt of requisition by the 
local authority under sub-section (1) no agreement is reached between the local authority and 
the Market Committee under the said sub-section, the land or building required by the market 
committee shall vest in the Market Committee for the purposes of thisAct and the. local authority 
shall be paid such compensation as may k- determined by the Deputy. Commissioner under sub-
sectiOn(S). 

20 	 The Nagaland Gazette, Part-V 	 15, May, 2020 
Provided that no compensation shall be payable to a local authority in respect of any land or 
building which had been vested in it by virtue of the provision contained in the enactment relating 
to the constitution of such local authority without payment of any amount whatsoever may be, 
for such vesting. 
Provided further that any party aggrieved by the order of the Deputy Commissioner may. within 
thirty days from the date of such order, appeal to the State Government. 
(3) The Local Authority shall deliver possession of the land or building vesting the Market 
Committee under sub-section (2) within a period of seven days from such vesting and on failure 
of the Local Authority to do so, within the period aforesaid, the Deputy Commissioner shall take 
possession.of the land or building and cause it to be delivered to the Market Committee. 
(4) The Deputy Commissioner shall fix the amount of compensation for the land or 
building having regard to- 
(i) the annual rent for which the building might reasonably be expected to be let from 
year to year: 
(ii) the condition of the building: 
(iii) the amount of compensation paid by the Local Authority for the acquisition of such 
land: and 
(iv) the cost of the present value of any building erected or other work executed on the 
land by the Local Authority. 
(5) The compensation fixed under sub-section (4) may. at the option of the Market 
Committee, be paid in lump-sum or in reasonable number of equal instalments with interest 
thereon as the Deputy Commissioner may fix. 
19. Acquisition of land for Market Committee and/or Board. 
11 When anx land within the delineated market area is required for the purposes of this 
Act, and the Board or the Market Committee is unable to acquire it by ancmcaz. the Government 
may. at the request of the Board or the Market Committee, as the case may be, proceed to 
acquire such land under the provisions of"Nagaland Land Acquisition and Requisition Act. 
1965" or any other relevant law as amended upto date, and on the payment of the applicable 
compensation awarded under that Act by the Board or Market Committee and of any other 
charges incurred by the Government in connection with the acquisition. the land shall vest in the 
Board or the Market Committee, as the case may be: 
Provided that once a proposal is made by the Market Committee, it shall not be withdrawn by it 
except for such reasons as may be approved by the Government. 
(2) The Board or the Market Committee shall not, without the previous Sanction of the 
Government. transfer any land which has been acquired for this purpose by the Board or the 
Market Committee under sub-section (l)ordivert such land to a purpose other than the purpose 
for which it has been acquired. 
Provided that the premises used for principal market yard, sUb-market yard or for the purpose 
of the Board shall not be deemed to be included in the limits of the Municipal Corporation. 

15, May, 2020 	 The Nagaland Gazette, Part- V 	 21 
Municipal Council, Notified Area, Gram Panchayat or a Special Area Development Authority. 
as the case may be. 
20. Appointment of Office rs-incharge of Market Committee pending 
constitution of Market Committee. 
(1) The first Market Committee shall be constituted for the first time for a delineated 
market area declared after commencement of this Act. All the members thereof including 
Chairperson and Vice-Chairperson, shall be nominated by the Government/Department. The 
first Market Committee so constituted may consist of Members including Chairperson and Vice-
Chairperson, not less than fifteen, which may include ten agriculturist members, as maybe 
prescribed. Other seven Members may be- 
(i) five Members, one each from departments of Agriculture, Horticulture. Animal Husbandry 
and Veterinary Sciences, Fisheries and Cooperation; 
(ii) one from Cooperative Marketing Society; and 
(iii) one from local Authority (Municipal Council. Town Council, Village Council, as the case 
Provided that the Chairperson and Vice-Chairperson shall be so nominated from amongst the 
agriculturist members. 
Provided further that Government/Administration may abide by the reservation policy of the 
Government in nomination of agriculturist Members. 
Provided also that the Govcmrnent/Adminjstrjtjon may, if it considers expedient, Instead of 
nominating the Members of the Market Committee constituted for the first time, appoint an 
Administrator or the Board ofAdministrators; so appointed, shall, for all purposes, be considered 
to be the committee constituted for the first time. 
2) Government or the Manazing Director shall, by an order. appoint a person to be the 
Officer-in charge of the first Market Committee for a period not exceeding one year. 
Provided that in the event of death, resignation, leave or suspcnsioii of the officer-in-charce. a 
casual vacancy shall be deemed to have occurred in such office and such vacancy shall be filled, 
as soon as may he. hy appointment of a person thereto by the Government or the Managing 
Director and until such appointment is made, a person deputed/nominated by the Managing 
Director shall act as Officer-in charge. The services of Officer-in-charge shall he coterminous 
with the first Market Committee. 
(3) The members including the Chairperson and Vice-Chairperson of the first Market 
Committee constituted under sub-section (1) shall hold office for a period not exceeding one 
year from the day of notification of Constitution of the committee. 
Provided that if new Market Committee is constituted before the expiry of period aforesaid. 
Members including the Chairperson and Vice-Chairperson shall cease to function on the date 
appointed for the first general meeting of the newly constituted Market 'Committee. 

22 	 The Nagaland Gazette, Part-V 	 15, May, 2020 
Provided further that Government or the Managing Director may, on proven misconduct, even 
before expiry of the period aforesaid, dismiss any Member including the Chairperson and Vice-
Chairperson. In such event, a casual vacancy shall be deemed to have occurred and such vacancy 
shall be filled, as soon as may be, by nomination of a person thereto, as the case may be, by the 
Government or the Managing Director. 
21. Composition of second and subsequent Market Committee. 
(I) Save as provided in Section 20, a Market Coinmiuee constituted for a term of five 
years from the date of notification of it constitution, shall consist of— 
(a) a Chairperson and a Vice —Chairperson elected under Section 25: 
(Wien representatives of agriculturisis. of which not less than three shall be women, possessing 
such qualifications as may be prescribed, chosen by direct election from the constituencies of a 
delineated market area in accordance with the provisions of t

Excerpt shown. Open the full act in Lexace.

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