LexThe punjab agricultural produce markets act, 1961
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THE PUNJAB AGRICULTURAL PRODUCE MARKETS ACT, 1961
(Punjab Act No. 23 of 1961)
(Received the assent of the President of India on the 18th May, 1961, and first published for
general information in the PUNJAB GOVERNMENT GAZETTE (EXTRA ORDINARY), Legislative
Supplement, of the 26th May, 1961).
An Act to consolidate and ame nd the law relating to the better regulation of the purchase,
sale, storage and processing of agricultural produce and the establishment of markets for agricultural
produce in the State of Punjab.
Be it enacted by the Legislature of the State of Punjab in the Twelfth year of the Republic of
India as follows: -
1. Short title, extent and commencement
(1) This Act may be called the Punjab Agricultural Produce Markets Act. 1961.
1[(2) It extends to the States of Punjab and Haryana, the territories transferred to the Union
Territory of Himachal Pradesh under section 5 of the Punjab Reorganisation Act, 1966 (31 of
1966) and the Union Territory of Chandigarh.]
(3) It shall come into force at once.
Definitions:
2[(2) In this Act, unless the context otherwise requires,-
(1) "ad-hoc buyer” means a buyer who is registered under this Act as such;
(2) "agricultural produce” means all produce, whether processed or not, of agriculture,
horticulture, medicinal plants, animal husbandry, livestock or forest as specified in the
Schedule to this Act;
(3) “assaying lab” means laboratory set up as prescribed for testin g of quality parameters
as per the tradable parameters or grade -standards or any other parameters notified by the
competent authority;
(4) “Board” means the Punjab State Agricultural Marketing Board established under this Act for
the State of Punjab;
(5) "broker” means a person, other than a private servant or an auctioneer, usually employed
on commission to enter into contracts on behalf of others for the purchase or sale of
agricultural produce;
(6) “buyer” means a person, who himself or on behalf of any person or an agent who buys
or agrees to buy agricultural produce in the market or notified market area, as the case may
be;
(7) “Committee” means a market committee established and constituted under sections 11 and
12;
1 Substituted vide G.O.I.S.O.No. 3021 dated 18 th july, 1969
2 Substituted vide The Punjab Agricultural Produce Markets (Second Amendment) Act, 2017 Punjab Act No. 17 of 2017 dated 14 .8.17.
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(8) "Competent Authority" means an authority as may be notified by the State Government ;
(9) "contract farming" means an agreement between the contract farming sponsors
who offers to purchase and the contract farming producer who agrees to produce under
which the production and marketing of an agricultural produce is carried out as per the
terms and conditions laid down in the agreement;
(10) "Co-operative Society” means a Co -operative Society registered or deemed to be
registered under the Punjab Co -operative Societies Act, 1961, or any other corresponding
law for the time being in force which deals in the purchase, sale processing or storage of
agricultural produce, or is other wise engaged in the business of disposal of agricultural
produce;
(11) “dealer” means any person who within the notified market area sets up, establishes or
continues or allows to be continued any place for the purchase, sale, storage or
processing of agricultural produce notified under sub -section (1) of section 6 or
purchases, sells, stores or processes such agricultural produce;
(12) “direct marketing" means the sale of agricultural produce by the producer directly to the
buyer may be outside or inside the principal market yard or sub -market yard or any other
market yard notified under this Act;
(13) “e-trading” means trading of agricultural produce in which registration, billing, booking,
contracting, auctioning, tendering, information exchanging, record keeping and other
connected activities as are done electronically on computer network/ internet;
(14) “e-trading platform” means electronic platform set up either by State Government or its
agencies or a person licenced under this Act for sale or purchase of agricultural produce
through electronic media or by any means of communication in which registration,
buying and selling, billing, booking, contracting, auctioning and tendering are carried out
online through computer network/ internet or any other such electronic device, where phy sical
transaction takes place;
(15) "farmer producer company" means a company of farmer -producer members registered
under sub- section (1) of section 465 of the Companies Act, 2013;
(16) “Godown Keeper” means a person, other than a producer, who stores agricultural
produce for himself for sale or stores agricultural produce of others in lieu of storage
charges;
(17) “licensee” means a person to whom a licence is granted under section 10 and the rules
made under this Act and includes any person who buys or sells agricultural produce and
to whom a licence is granted as Kacha Arhtia or commission agent or otherwise but does
not include a person licensed under section 13;
(18) “livestock” means cattle, goat, sheep, poultry, fis h and such other animals and products
thereof as specified in the Schedule of this Act ;
(19) “market” means a market established and regulated under this Act for the notified market
area, and includes a market proper, a principal market yard, sub -market yard and private
market yard;
(20) "marketing" means all agricultural activities involved in the flow of agricultural produce
from the production points commencing from the stage of harvest till these reach the ultimate
consumers such as purchase, sale, storage, processing, trading, tran sportation, cleaning,
weighing, standardization, grading, packing for the value addition and other conne cted
activities of agricultural produce and all other functions connected therewith including the
marketing under contract farming;
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(21) “market proper” means any area including all lands with the buildings thereon, within such
distance of the principal market or sub -market yard, as may be notified in the Official Gazette
by the State Government, to be a market proper;
(22) “member” includes the Chairman of the Board;
(23) “notified market area” means any area notified under section 6;
(24) “over trading” means the amount exceeding the value of the agricultural produce including
livestock purchased at any point of time vi s-a-vis to the amount of security deposited
with or the bank guarantee furnished to the market committee as prescribed;
(25) “person” means an individual, registered or unregistered firm, Hindu Undivided Family,
Company, Co -operative Societ y, Government agency or Public Sector Undertaking or
Corporation, as the case may be;
(26) “prescribed” means prescribed by rules made under this Act;
(27) "price stabilization fund" means any fund constituted for the purpose of curtailing extreme
volatility in prices of specified agricultural produce;
(28) “principal market yard” and “sub-market yard” mean an enclosure, building or locality
declared to be a principal market yard and sub-market yard under section 7;
(29) “private enterprises” means a n economic activity undertaken by private individuals or
organization under private ownership;
(30) “private market yard” means an enclosure, building or locality other than the principal
market yard or sub-market yard in notified market area, owned and operated by any person or
company or co -operative society in accordance with the terms and conditions of a licence,
granted by the State Government and where infrastructure has been developed by such
person or company or co- operative society as the case may be;
Explanation: - For the purpose of this clause, company shall mean a company incorporated
under the Companies Act, 2013;
(31) "processing" means any one or more of a series of treatments relating to powdering,
crushing, decorticating, de -husking, parboiling, curing or any other manual, mechanical,
chemical or physical treatment to which raw agricultural produce or its product is subjected to;
(32) “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 tenants or
otherwise, but does not include a person who works as a dealer or a broker or who is a
partner of a firm of dealers or brokers or is otherwise engaged in the business of disposal of
agricultural produce other than that grown, manufactured, reared, or produced by himself,
through his tenants or otherwise. If a question arises as to whether any person is a producer
or not for the purposes of this Act, the decision of the Deputy Commissioner of the District in
which the person carries on his business or profession shall be final:
Provided that no person shall be disqualified from being a producer merely on the
ground that he is a member of a Co-operative Society;
Explanation: - The term ‘producer’ shall also include tenant;
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(33) "producer and consumer market yard" means an enclosure, building or locality in the
notified market area, owned and operated by a person or by a group of producers or by
the Market Committee in accordance with the terms and conditions of the license
granted for this purpose a nd where the infrastructure has been developed, maintained and
operated by such person under section 7-F ;
(34) "producer market yard (Kissan Mandi)" means a place where the sale of agricultural
produce is made by the producer directly to the buyer/ retailer whether inside or outside the
principal market yard or sub -market yard in the notified market area. A Kissan Mandi
yard may be set up with suitable infrastructure in accordance with the provisions of
this Act, by a group of producers, Farmer Producer Organization, Farmer Agri. Business
Consortium, Farmer Producer Company or by the Market Committee in any notified market
area;
(35) "public private partnership" means providing of services by the Board or the Commi ttee or
a group of committees or private enterprises which is funded and operated through a
partnership of Board or Committee or a group of committees with one or more private sector
entities including companies, private firms or co -operative societies or any other entity
established under a law in force in the State of Punjab by pooling resources or man power for
the set up and creation of a market yard, as the case may be;
(36) “retail sale” means sale of agricultural produce not exceeding such quantity as may be
prescribed;
(37) "seasonal market yard" means an enclosure, building or locality declared to be a seasonal
market yard in the notified market area under section 7-A;
(38) “secretary” means the Executive Officer of a committee and includes an Assistant
Secretary or a person officiating or acting as Secretary;
(39) "self help groups" means a small voluntary association of producers preferably from the
same socio- economic background;
(40) "special market yard" means an enclosure, building, having specially designed
infrastructure provided in the Notified Market Area notified under section 7 -B and
managed by the Board or Committee or Special Purpose Vehicle or company, as the case
may be;
(41) "State Government” means the Government of the State of Punjab in the Department of
Agriculture;
(42) “trade allowance” includes an allowance having the sanction of custom in the notified
market area concerned and market charges payable to various functionaries;
(43) "trading" means the buying or selling of agricultural produce in a notified market area;
(44) "user charges" means charges levied for the use of infrastructure or for services rendered
by the Board or the Committee or by any other entity authorized by the competent authority
in this behalf; and
(45) "value addition" includes cleaning, processing, standardizat ion, grading, packing or other
such activities which enhance the value of agricultural produce.".]
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1 [2 A. Construction of certain references in the Act
In the application of the provisions of this Act-
(1) to the State of Haryana, any reference therein to any expression mentioned in column :-
(1) of the Table below shall be construed as a reference to the corresponding expression mentioned
in column (2) of the said Table.
TABLE
(1) (2)
State Government. The Government of the State of Haryana.
Punjab State or State of Punjab except in section 1 of the Act. State of Haryana.
State Agricultural Marketing Haryana State Agricultural Marketing Board
1. Deleted vide G.O.I.S.O. No.3021 dated 18th July, 1969.br> 22 & 3. Inserted vide G.O.I.S.O. No.
3021, dated 18th July, 1969.
(2) to the territory transferred to Himachal Pradesh any reference therein to any expression mentioned
in column (1) of the Table below shall be construed as a reference to the corresponding expression
mentioned in column (2) of the said Table.
TABLE
(1) (2)
State Government. Administrator of the Union Territory of
Himachal Pradesh.
Punjab State or State of Punjab except in
section 1 of the Act. Transferred territory.
State Agricultural Marketing Board Administrator of the Union Territory of
Himachal Pradesh.
(3) to the Union Territory of Chandigarh, any reference, therein to any expression mentioned in
column (1) of the Table below shall be construed as a reference to the corresponding expression
mentioned in column (2) of the said Table.
TABLE
(1) (2)
State Government. Administrator of the Union Territory of Chandigarh.
Punjab State or State of Punjab except in section 1 of the Act. Union Territory of Chandigarh.
State Agricultural Marketing Board Administrator of the Union Territory of Chandigarh.
1 Inserted vide G.O.I.S.O No. 3021 dated 18 th july 1969
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3. State Agricultural Marketing Board, Constitution, Powers and Duties
1[(1) The State Government may, for exercising powers conferred on and performing the functions
and duties assigned to the Board by or under this Act, establish and constitute the Punjab
State Agricultural Marketing Board, consisting of a 2[chairman and vice chairman to be
nominated by State Government] and twenty other members of whom, ten shall be officials
and ten non -officials, to be nominated by the state Government in the following manner,
namely:-
(a) official members shall include-
(I) the Financial Commissioner Development -cum-Principal Secretary to
Government of Punjab, Department of Agriculture or his representative;
(II) the Principal Secretary to Government of Punjab, Department of Finance or
his representative;
(iii) the Director, Horticulture, Punjab;
(iv) the Director, Agriculture, Punjab
(v) the Secretary of the Board;
(vi) the Registrar, Co-operative Societies, Punjab or his representative;
(vii) the Chairman, Farmers’ Commission, Punjab or his representative;
(viii) the Vice -Chancellor, Punjab Agriculture University, Ludhiana or his
representative;
(ix) the Director, Colonization, Punjab; and
(x) the representative of the Department of Food and Supplies, Punjab; and
(b) non-official members shall include –
(i) one producer member of a committee;
(ii) one representative from amongst the members of a Committee, who has a
licence under Section 10;
(iii) one person from amongst the licensees under Section 10;
(iv) one representative from amongst the members of a Committee, who has
licence under Section 13;
(v) one representative from amongst the members of a registered organization of
Farmers;
(vi) Four members from amongst the progressive producers of the State of
Punjab (i.e. one from each division); and
(vii) one representative of the Co-operative societies;
Provided that when the non -official members referred to in sub -clauses (i), (ii) and (iii) of
clause (b) cannot be nominated owing to all the Market Committees being under
supersession the Board shall consist of all the members, including the 3[Chairman and Vice
Chairman], referred to in this sub -section excepting the members referred to in the aforesaid
sub-clauses and the same shall be deemed to be validly constituted Board till such members
are nominated by the State Government after the Market committees are constituted. ]
4[(2) There shall be a Secretary of the Board who shall be appointed by the State Government
from amongst those members of the Indian Administrative Service, the Punjab Civil Service
(Executive Branch) or the Punjab Agricultural Service (Class I) who have put in not less than
five years service as such member].
(3) The Board shall be a body corporate as well as a local authority by the name of the State
Agricultural Marketing Board having perpetual succession and a common seal, with power,
subject to the provisions of this Act, to 5 [acquire,6[ hold, sell] lease or otherwise transfer
1 Substituted vide Notification No. 8-Leg./2009 (Pb. Act No. 7 of 2009) dt. 14-05-2009
2 Substituted vide Notification No. 30-Leg./2010 dt 22-11-2010 (Punjab Act No. 22 of 2010)
3 ibid
4 Substituted vide Punjab Act No.13 of 1979
5 Substituted vide Punjab Act No.13 of 1979
6 Substituted vide The Punjab Agricultural Produce Markets (Second Amendment) Act, 2017 Punjab Act No. 17 of 2017 dated 14.8.17.
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immovable or movable property as may be prescribed for a period specified in the transfer
deed] and shall be the said name sue and be sued.
(4) The term of office of the non-official members of the Board shall be three years.
(5) No person shall be eligible to become a member of the Board who :-
(a) does not ordinarily reside within the Punjab State;
(b) is below twenty-five years of age;
(c) has been removed under sub-section (7) or section 15;
(d) is of unsound mind; or
(e) has been declared as insolvent or sentenced by a criminal court, whethe r within or outside
the Punjab State, for an offence involving moral turpitude:
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.
(6) A member of the Board may resign from membership by tendering his resignation to
the State Government through the Chairman of the Board and the seat of such members
shall become vacant on the date of acceptance of his resignation:
1 [Provided that the Chairman 2[and the Vice Chairman] may resign by tendering his
resignation to the State Government]
3[(7) The State Government may, by notification remove any member of the Board other than a
official member :-
(a) if he has become subject to any of the disqualifications specified in sub-section (5); or
(b) if he is, in its opinion, remiss in the discharge of his duties; or
(c) if he has without the permission of the Chairman of the Board and in the opinion of the State
Government without sufficient cause absented himself for not less than three consecutive
meetings of the Board, and may appoint another member in his place in the manner provided
in clause (b) of sub-section (1) 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 reply invited within a specified period and duly considered:
Provided further that the term of office of the member so appointed shall expire on the
same date as the term of office of the vacating mem ber would have expired had the latter
held office for the full period allowed under sub -section (4) unless there be delay in appointing
a new member who succeeds the member first mentioned above in which case it shall expire
on the date on which his successor is appointed by the State Government].
(8) The State Government shall exercise superintendence and control over the Board and its
officers and may call for such information as it may 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 mismanagement, it may suspend the Board and, till such time as a new Board is
constituted, make such arrangements for the exercise of the functions of the Board 4[and of
its Chairman] as it may think it:
1 Added vide Punjab Act No. 40 of 1963
2 Substituted vide Notification No.30-leg/2010 dated 22.11.2010 (Punjab Act No.22 of 2010)
3 Substituted vide Punjab Act No.13 of 1979
4 Inserted vide Punjab Act No.13 of 1979
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Provided that the Board shall be constituted within 1[five years & six months] from the
date of its suspension.
*(9) The Board shall exercise superintendence and control over the committees.
**(10) The State Government or the Chairman or the Secretary of the Boar d or any other officer of
the Board authorized in this behalf by the Board may call for any information or return relating
to agricultural produce from a committee or a dealer or a go down keeper or other
functionaries and shall have the power to inspect the records and accounts of a committee
and accounts of any dealer, go down-keeper or other functionaries for that purpose.
(11) The 2 [Chairman or subject to his control the Secretary of the Board] may transfer the
Secretary or any employee dealing with the accounts of one committee to another committee
and they shall exercise such other powers and discharge such other duties as may be
prescribed:
Provided that any increase or decrease in emoluments of a transferred employee
shall be referred to the State Government whose decision on such reference shall be final.
(12) Subject to the provisions of this Act and the rules and bye -laws made there-under, the Board
may employ such persons for the performance of the functions of the Board under this Act,
and may give them such remuneration, as it may think fit, and may suspend, remove, dismiss
or otherwise punish any person so employed.
(13) Subject to rules made under this Act, an estimate of the annual income and expenditure of the
Board for the ensuing year shall be prepared and passed by the Board and submitted every
year for the sanction of the State Government not later than the prescribed date. The State
Government shall sanction and return the budget within two months from the date of the receipt
thereof. If it is not received within two months it shall be presumed to have been sanctioned.
(14) Subject to rules made under this Act, the Board may, with the approval of the State
Government, frame bye-laws for-
(a) regulating the transaction of business at its meetings;
(b) the assignment of duties and powers of the Board to its 3[Chairman, Vice Chairman,
Secretary] or persons employed by it; and
(c) such other matters as may be prescribed.
(15) 4 [Six] members shall constitute a quorum at a meeting of the Board:
Provided that if a meeting is adjourned for want of quorum, no quorum shall be necessary at
the next meeting called for transacting the same business.
(16) All questions before a meeting of the Board shall be determined by a majority of votes of the
members present and voting and, in case of equality of votes, the Chairman may exercise a
casting vote.
Note:- The powers of the ‘Board’ under sub-section (12) of Section 3 have been delegated to
Secretary Board vide Govt. Memo. No. 11 (6) - M-87/221-spl. Dated 11.8.87.
(17) (i)The State Government may delegate to the Board or its 5[Chairman, Vice Chairman or
Secretary] any of the powers conferred on it by or under this Act; and
1 Substituted vide Punjab Ordinance No.1 of 1992 dated 19.06.1992
2 Substituted vide Punjab Act No.5 of 1974
3 Substituted vide Notification No.30 leg/2010 dated 22.11.2010 (Punjab Act No.22 of 2010)
* The powers under section 3 (9) have been delegated to Secretary Board vide Memo No. 18 (50) M -1-87/1048 dt. 08.12.87 and subsequently
superseded vide memo No. 11/11/93-M-1/8270 dated 16.7.93 and powers delegated to Chairman of the Board..
** Powers have been delegated to secretary market committee, Assistant District Mandi Officer, Deputy District Mandi Officer, Di strict Mandi
Officer, Enforcement chief and Manager Marketing vide offi ce order No. 887 (1991) dt.: 6-6-1991
4 Substituted vide Punjab Act No.13 of 1979
5 Substituted vide Notification No.30 leg/2010 dated 22.11.2010 (Punjab Act No.22 of 2010)
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(ii)The Board may 1[with the prior approval of the State Government], delegate any of its
powers to its 2 [Chairman, Vice Chairman, Secretary or any of its officers.]
(18) The headquarter of the Board shall be located at a place to be determined by the State
Government.
(19) No act or proceeding of the Board shall be invalid by reason only of the existence of any
vacancy among its members or any defect in the constitution thereof.
3[3-A The powers of the Board in respect of the transferred territory and the Union
Territory of Chandigarh.
Notwithstanding anything contained in this Act, the Administrator of the Union Territory of
Himachal Pradesh in relation to the transferred territory and the Administrator of the Union
Territory of Chandigarh in relation to that t erritory, shall, until other provision is made by law,
be deemed to be the Board constituted under this Act, respectively for the transferred territory
and the Union Territory of Chandigarh and accordingly shall perform the functions, discharge
the duties and exercise the powers of the Board in relation to these areas].
4. 4[Advisory committee ............. omitted]
5. Notification of intention of exercising control over purchase, sale, storage and
processing of agricultural produce in specified area.
The state Government may, by notification, declare its intention of exercising control over the
purchase, sale, storage and processing of such agricultural produce, and in such area as may
be specified in the notification. Such notification shall state th at any objections or suggestions,
which may be received by the State Government within a period of not less than thirty days to
be specified in the notification, will be considered.
6. Declaration of notified market area
(1) After the expiry of the period specified in the notification under section 5 and after considering
such objections and suggestions as may, be received before the expiry of such period, the
State Government may by notification and in any other manner that may be prescribed,
declare the area notified under section 5 or any portion thereof to be a notified market area for
the purposes of this Act in respect of the agricultural produce not ified under section 5 or any
part thereof.
(2) The State Government if satisfied that in any notified market area a committee is not
functioning 5[or two such areas or parts thereof are to be amalgamated or a part of any such
area is to be amalgamated with another such area or is to be constituted into a separate
notified market area], may by notification denotify any market area notified under sub -section
(1) or any part thereof and, when the whole of such area is denotified, cancel a committee
and transfer all with the assets of that committee which remain after satisfaction of all, its
liabilities to the Board. Such assets shall be utilized by the Board for such objects in the area
as it may consider to be for the benefit of the producers of that area.
1 Substituted vide Punjab Act No.22 of 1978
2 Substituted vide Notification No.30 leg/2010 dated 22.11.2010 (Punjab Act No.22 of 2010)
3 Inserted vide G.O.I.S.O. No. 3021, dated 18th July, 1969.
4 Omitted vide Punjab Act No. 13 of 1979.
5 Substituted for certain words Punjab Act 40 of 1963
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(3) After the date of issue of such notification or from such later date as may be specified therein,
no person, unless exempted by rules made under this Act, shall, either for himself or on
behalf of another person or of the State Government within the notified mar ket area, set up,
establish or continue or allow to be continued any place for the purchase, sale, storage and
processing of the agricultural produce so notified, or purchase, sell, store or process such
agricultural produce except under a licence granted in accordance with the provisions of this
act, the rules and bye-laws made there under and the conditions specified in the licence:
Provided that a licence shall not be required by a producer who sells himself or
through a bona-fide agent, not being a com mission agent, his own agricultural produce or the
agricultural produce of his tenants on their behalf or by a person who purchases any
agricultural produce for his private use.
(4) For the removal of doubts, it is hereby declared that a notification publishe d in the official
gazette under this section or section 5 shall have full force and effect notwithstanding any
omission to publish, or any irregularity or defect in the publication of a notification under this
section or under section 5 as the case may be.
1[7. Declaration of Market Yards
(1) For each notified market area, there shall be one principal market yard, one or more sub -
market yards, one or more seasonal market yards, one or more special market yards, one or
more producer and consumer market yards, one or more producer market yards and one or
more private market yards as may be necessary.
(2) The State Government may, by notification, declare any enclosure, building or locality in any
notified market area to be principal market yard for the area and other enclosures, buildings
or localities to be one or more sub-market yards, one or more seasonal market yards, one or
more special market yards, one or more producer and consumer market yards, one or more
producer market yards and one or more private market yards for the area.
7- A. Establishment of Seasonal Market Yard
(1) The Secretary of the Board may for a particular crop or crops notify any enclosure or
building or locality in a notified market area to be a seasonal market yard which shall be
established, maintained and operated by market committee concerned primarily in the
harvesting season of that particular crop or crops, as the case may be.
(2) In the notified market yard under sub -section (1), the Market Co mmittee concerned have
to establish a market therein and provide such facilities for marketing of agricultural produce
and also for persons visiting it in connection with the purchase, sale, storage,
weighment and processing of agricultural pr oduce concerned as the Secretary of the
Board may direct from time to time.
1 7 – 7 H, Substituted vide The Punjab Agricultural Produce Markets (Second Amendment) Act, 2017 Punjab Act No. 17 of 2017 da ted 14-8-17.
of market
yards.
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7--B. Establishment of Special Market Yard
(1) In order to notify a special market yard under section 7, the State Government, apart
from other things shall also consider such aspects as turnover, serving area and
special infrastructural requirements of particular commodities to be marketed therein as may
be prescribed.
(2) Such special market yards may be managed either directly by the Board or through
Public Private Partnership or through a co -operative or corporate body or Special Purpose
Vehicle or individuals as may be notified from time to time and shall not be under the control
of the Market Committee concerned.
7- C. Establishment of Private Yard
(1) A private market yard may be set up by any person with suitable infrastructure in
accordance with the provisions of this Act and rules made there under for the sale or
purchase of agricultural produce as may be specified by the State Governm ent.
(2) The owner of the private market yard, referred to in sub -section (1) shall neither be
permitted himself for sale or purchase of agricultural produce in the private market yard so
developed and managed by him nor any other person shall do so on h is behalf, as the case
may be.
(3) Save as otherwise provided in this Act, the owner of the private market yard or its
management committee, by whatever name called, referred to in sub -section (1) shall
perform such functions and duties of th e Market Committee as prescribed and under
the overall supervision of the Competent Authority or any other officer authorised in this
behalf.
(4) The private market yard referred to in sub -section (1) shall be established subject to
the fulfilment of such terms and conditions in such manner as may be prescribed.
7- D. Establishment of Producer and Consumer Market Yard
A producer and consumer market yard may be set up with suitable infrastructure in
accordance with the provisions of this Act and rules made there under, by any person
or a group of producers or the Market Committee, as the case may be, in any notified
market area, on fulfillment of such terms and conditions in such manner as may be
prescribed:
Provided that producer shall sell such quantity of agriculture produce directly to the
consumer at a time as may be prescribed.
7-E. Establishment of Producer Market Yard (Kissan Mandi)
Producer Market Yard (Kissan Mandi) may be established outside the principal market yard
or sub-market yard in the notified market area. Such market yard may be set up with
suitable infrastructure in accordance with the provisions of this Act and the rules made there
under, by a group of producers or Farmer Producer Organization or Farmer Agri. business
Consortium or Farmer Producer Company or the Market Committee in any notified market
area for sale to whole sellers or institutional buyer or any other buyer as may be prescribed.
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7- F . Permission for e-trading platform
Subject to the provisions of this Act and the rules made there under, the State Government
may grant permission to any person for setting up a platform for spot marketing of notified
agricultural produce in the State, on fulfillment of such terms and conditions in such manner
as may be prescribed:
Provided that owner or service provider of “e -trading platform" shall neither be
permitted himself for the sale or purchase of agricultural produce in the “e-trading platform" so
developed and managed by him nor any other person shall do so on his behalf, as the case
may be.
7- G. Permission for Direct Marketing
Subject to the provisions of this Act and the rules made there under, the State
Government may grant permission to any person for purchase of the agricultural produce
directly from producers outside the principal market yard or sub -market yard or at any place
specified in the notified market area, on fulfillment of such terms an d conditions in such
manner as may be prescribed.
7- H. Public private partnership
The Board or with the permission of the Board, a Committee or group of Committees may
create, promote, manage and maintain infrastructure for a market yard or for value addition
such as cleaning, standardization, grading and post harvest handling of agricultural produce
including cold storages, pre -cooling facilities and pack houses in notified market area through
public private partnership.".]
8. No private market to be opened in or near places declared to be markets
1[Save as otherwise provided in section 7, on and after] the date on which the State
Government have by a notification under section 7 declared any place to be a principal or
sub-market yard, no person or Municipal committee, District Board, Panchayat or any Local
Authority, notwithstanding anything contained in any enactment relating to such Municipal
committee, District Board, Panchayat or Local Authority shall be competent to set up,
establish or continue or allow to be continued any place within the limits of such market or
within a distance thereof to be notified in the official gazette in this behalf in each case by the
State Government for the purchase, sale, storage and processing of any agricultural produce:
Provided that a producer shall not be deemed to set up, establish or continue or allow
to be continued a place as a market for the purpose of the purchase, sale, storage or
processing of agricultural produce if he sells his own agricultural produce outside the
premises set apart by the committee for the purpose of purchase, sale, storage and
processing of agricultural produce.
9. Authority to whom applications for grant of licences are to be made
The 2 [ Secretary of the Board ] or any other officer authorized by him in writing in this
behalf shall be the authority for granting licences required under section 6.
1 Substituted vide Punjab Act No. 13 of 2005, dated 23 -05-2005 (Notification No. 19 Leg./2005 dt. 23-05-2005).
2 Substituted vide Punjab Act No. 40 of 1963
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10. Applications for licences , fees to be paid and cancellation or suspension of
licences
1["(1) Any person may apply to the authority specified in section 9 for a licence which may be
granted for such period, in such form, on such conditions and on payment of such fees as
may be prescribed:
Provided that the license granted to commission agent and other market functionaries
under sub-section (1) shall be valid for all the market yards notified under section 7:
Provided further that if any person carrying on any business of the nature specifie d in
sub-section (3) of section 6 in a notified market area on the date of issue of notification under
sub-section (1) of that section, fails to apply for a licence on or before the date specified
therein for obtaining licence, the prescribed authority may , before a licence is issued, impose
on him such penalty as may be prescribed.
(1 A) Any person may apply to the competent authority for a licence applicable to the whole of the
State, which may be granted for such period, in such form, on such condition s and on
payment of such fees as may be prescribed and shall be valid for all the market yards notified
under section 7.".]
(2) The 2[Secretary of the Board ] may, on being satisfied that there has been a breach of
any of the conditions specified in a licence, by an order in writing, cancel or suspend such
licence and may also direct that such licence shall not be renewed for such period not
exceeding five months for the first breach and not exceeding nine months for the second
breach and not exceeding one year for every subsequent breach, as may be specified in that
order:
Provided that the Chairman of a committee of the area concerned may under
intimation to the Secretary of the Board suspend a licence for a period not exceeding fifteen
days:
Provided further that no such order shall be made without giving the licensee an
opportunity to show cause why such an order should not be made.
(3) The 3[Secretary of the Board] after such enquiry as he may consider necessary, refuse a
licence to a person who in his opinion: -
(a) is a benamidar for or a partner with any person to whom a licence has been refused, or
whose licence is cancelled or suspended under sub -section (2) for the period of such
cancellation or suspension; or
(b) is convicted of an offence affecting the said person’s integrity as a man of business
within two years of such conviction; or
(c) is undischarged insolvent:
Provided that no such order shall be made without giving suc h person an opportunity
to show cause why such an order should not be made.
(4) Any person aggrieved by an order made under this section may at any time within one
month of the making thereof, appeal to the State Government if such order is passed by
the 4[Secretary of the Board] and to the Secretary of the Board if such order is passed by the
Chairman of the committee.
1Substituted vide The Punjab Agricultural Produce Markets (Second Amendment)Act, 2017 Punjab Act No. 17 of 2017 dated 14.8.17.
2 Substituted vide Punjab Act No. 40 of 1963.
3 Substituted vide ibid.
4Substituted for the words "Chairman of the Board" vide Punjab Act No.40 of 1963.
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1[10-A. Certain persons to be licensees
Any person to whom a licence is granted under section 10 shall be deemed to be licensee
under that section for the purposes of this Act and the rules made there under including that
of levy of fees under section 23 on the agricultural produce bought or sold by him in the
notified market area, irrespective of the fact whether the business of buying or selling of
agricultural produce is specified in his licence or not].
2["10-B. Granting of Licence to private person
Any person who desires to establish a pri vate special market yard, private market yard,
private e-trading platform, private producer and consumer market yard or private producer
market yard (Kissan Mandi) in any notified market area under section 7, shall apply to the
competent authority along w ith requisite fee for grant of license and the competent authority
shall grant the licence for such period, in such form, on such terms and conditions as may
be prescribed.
10-C. Settlements of dispute.
Any dispute concerning private yards licenced under section 10 -B shall be referred to the
competent authority or any officer authorised by it and the decision thereon shall be final.
10-D. Registration of ad-hoc buyer.
Any person desirous of wholesale buying from the principal marke t yard or sub-market yard
for his own consumption without obtaining licence under section 10 shall have to get himself
registered with the concerned Market Committee, in the form and in the manner, as may be
prescribed and he shall have to specify the da y of purchase of agricultural produce at the
time of registration and shall be liable to pay market fee at the prescribed rate to the said
Committee before lifting the agricultural produce:
Provided that the buyer shall not make such wholesale purchases m ore than three
times in a month across the State.
10-E. Sale of agricultural produce.
(1) No agricultural produce shall be sold at any place other than the markets notified under
section 7.
(2) Nothing in sub -section (1) shall apply to the sale of agricultural produce made by the
producer to any person for his domestic consumption up to such quantity as may be
presExcerpt shown. Open the full act in Lexace.