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The RAJASTHAN AGRICULTURAL PRODUCE MARKETS ACT, 1961

Rajasthan · state statute
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THE RAJASTHAN AGRICULTURAL PRODUCE MARKETS ACT, 1961 
 
(Act No. 38 of 1961) 
[Received the assent of the President on the 3rd day of November, 1961] 
An 
Act 
to provide for the better regulation of buying and selling of agricultural produce and the 
establishment of markets for agricultural produce in the State of Rajasthan. 
 Be it enacted by the Rajasthan State Legislature in the Twelfth Year of the Republic 
of India, as follows :- 
CHAPTER I 
 
PRELIMINARY 
 
1. Short title and extent . – (1) This Act may be called the  Rajasthan 
Agricultural Produce Markets Act, 1961. 
 
         (2)   It extends to the whole of the State of Rajasthan. 
 
2. Definitions.- (1) In this Act, unless the subject or context otherwise requires, - 
 
(i) “agricultural produce” includes all produce whether o f agriculture, 
horticulture, animal husbandry or otherwise as specified in Schedule; 
 
(ii) “Agriculturist” means a person who ordinarily by himself or by his tenants or 
hired labours or otherwise is engaged in the production or growth of  
agricultural produce, but does not include a trader or broker may also be 
engaged in the production or growth of  agricultural produce; 
1(iia) “Board” means the Rajasthan State Agricultural Marketing Board      
established under Section 22-A 
---------------------------------------------------------------------------------------------------------------------------------------------------------  
1. Inserted by section 2 of Rajasthan Act no 15 -A of 1973 published in The Rajasthan Gazette, part IV -A, extra ordinary, 
dated 14.7.1973 
 
 
 
(iii) “broker” means an agent whose ordinary course of business is to negotiate 
and make contracts on payment of commission for the purchase or sale of 
agricultural produce on behalf of his principal an includes a commission agent 
but not include the servant of t he principal whether engaged in negotiating or 
making such contracts; 
 
(iv) “bye-laws” means bye-laws made under section 37 or section 38; 
1(iva)  “contract farming” means farming by a person on his land  under a contract 
farming agreement in accordance with the  provisions of this Act or the rules 
made there under with another person to the effect that his farm produce shall 
be purchased as specified in the agreement; 
1(ivb) “contract farming agreement” means the agreement made for contract 
farming between contract farming buyer and contract farming producer; 
1(ivc)  “contract farming buyer” means the person purchasing agricultural produce, 
produced under a contract farming agreement; 
1(ivd)  “contract farming producer” means a person, who enters into a contract 
farming agreement to cultivate on his land the produce specified in such 
agreement; 
(v) 2“Director” ,means the Director of Agricultural Marketing for the State of 
Rajasthan; 
1 (v-a)  “export”  means dispatch of agricultural produce outside India; 
(vi) “fund” means a market committee fund referred to in section 18; 
 
(vii) “market” means a regulated market established under and for the purposes of 
this Act for a market area and include a market proper as well as a principal 
market yard or a sub-market yard; 
 
(viii) “market area” means any area declared to be a market area under section 4. 
 
(ix)  “market committee” means a market committee established under section 6; 
-------------------------------------------------------------------------------------------------------------------------- ------------------------------ 
1.  New clause (iva) inserted in Section 2 act no 19 of 2005 published in The Rajasthan Gazette , part IV -A, extra 
ordinary, dated 21.11.2005 
2. Substituted w.e.f. 9.5.1980 by section 2 of Rajasthan Act No 2 of 1980, publishe d in the Rajasthan Gazette, Part IV -A 
Extra ordinary, dated 14-8-80. 
 
 
 
(x) “market proper” means the area including all lands with the buildings 
thereon, within such distance of a principal market yard or a sub -market yard 
as the State Government may declare to be a market proper; 
 
(xi) “person” includes a cooperative society, a firm, an undivided joint family or 
an association or body of individuals, whether incorporated or not; 
 
(xii) “prescribed” means prescribed by rules under section 36; 
 
(xiii) “principal market yard” means an enclosure, building or locality declared to 
be a principal market yard under section 5; 
1(xiii-a) “processing” means any one or more of a series of treatment relating to 
powdering, crushing, decorating, husking, parboiling, polishing, ginning, 
pressing, curing or any other manual, mechanical, chemical or physical 
treatment to which raw agricultural produce or its product is subjected to and 
the expression “processor” shall be construed accordingly; 
 
(xiv) “retail sale” means a sale of any agricultural produce not exceeding such 
quantity as may be determined by bye -laws made under section 37 or section 
38, to be a retail sale in respect of such agricultural produce; 
 
(xv) “rules” means rules made under section 36; 
 
(xvi) “Schedule” means schedule to this Act; 
 
(xvii) “Sub-market yard” means an enclosure, building or locality declared to be a 
sub- market yard under section 5; 
 
(xviii)   “surveyor” means a person whose business is to survey a consignment of 
agricultural produce for sale in regard to quality, refr action, adulteration or 
any other purpose; 
 
(xix) “trade” means any trans action of sale or purchase of any agricultural 
produce; 
------------------------------------------------------------------------------------------------------------- 
1. New clause  (ivb), (ivc), (ivd,  (va), (xiiia) inserted in Section 2 act no 19 of 2005 published in The Rajasthan Gazette , 
part IV-A, extra ordinary, dated 21.11.2005 
 
 
 
(xx) “trader” means a person ordinarily engaged in the business of buying and 
selling of agricultural produce on his own behalf but does not i nclude a 
broker; 
 
(xxi) “weighman” means a person whose business is to weigh a consignment of 
agricultural produce for sale. 
(2)    If a question arises whether any person is or is not an agriculturist for the 
purpose of this Act, the decision of the Director on such question shall be final. 
CHAPTER II 
 
CONSTITUTION OF MARKETS 
 
3. Notification of intention of exercising control over purchase and sale of 
agricultural produce in specified area  - (1) The State Government may, by notification in 
the official Gazette, de clare its intention of regulating the purchase and sale of such 
agricultural produce and in such area as may, be specified in the notification : 
Provided that no area within the limits of a municipality shall be included in the area 
specified in such notif ication except after consultation with the municipal board or 
municipal council concerned, as the case may be. 
(2)  A notification under sub -section (1) shall State that any objection or 
suggestion which may be received by the State Government within a period of not less than 
one month, to be specified in the notification, shall be considered by the State Government. 
4. 1[Declaration of market area.  – (1)  After the expiry of the period specified 
in the  notification issued under section 3 and after considerin g such objection s and 
suggestions as may be received before such expiry and after holding such enquiry as may be 
necessary, the State Government may, by notification in the official Gazette, declare the 
area specified in the notification under section 3 or  any portion there of to be a market area 
for the purposes of this Act in respect of all or any of the kinds of agricultural produce 
specified in the said notification. 
(2) The State Government may, at any time by notification in the Official 
Gazette, exclude from a market area any area or include in any market area other area. 
 
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1. Section 4 Sub. by (Act 19 of 2005) published in the Rajasthan Gazette , Part IV-A Extra ordinary, dated 21-11-2005.  
 
 
 
5. 1Division of market into yards. – (1) In every market area, there may be- 
(a) one principal market yard managed by the market committee; 
(b) one or more than one sub-market yards managed by the market committee; 
(c) one or more than one private sub -market yards managed by a person other than 
the market committee; 
(d) one or more than one consumer farmer markets managed by a market committee 
or by a person other than the market committee. 
 
(2) The State Government may, by notification in the Official Gazette, declare 
any specified place including any structure, enclosure, open place or locality in the market 
area to be a market yard or, as the case may be, sub-market yard. 
15-A. Establishment of  private sub -market yards .- The Director or any other 
authority empowered by the State Government in this behalf may grant licence to establish 
private sub-market yards in a market area for -  
(i)  processing of agricultural produce; 
(ii) export of agricultural produce; 
(iii) trade of agricultural produce of particular specification; and  
(iv) grading, packing and trans action in other way  by value addition of agricultural 
produce. 
15-B. Establishment of private consumer -farmer market. – (1) Private consumer- 
farmer market may be established by developing infrastructure as prescribed, by any person 
in any market area. At such place, producer of agricultural produce himself may sell his 
produce directly to the consumer in the prescribed manner : 
 Provided that the consumer shal l not purchase more than such quantity of a 
commodity at a time in the consumer-farmer market as may be prescribed. 
(2) Market service charges shall be collected on sale of agricultural produce 
from the seller at such rate, not exceeding half percent of th e worth of the agricultural 
produce, as may be prescribed by the State Government and shall be paid to the proprietor 
of the consumer-farmer market. 
(3)  save as otherwise provided in this Act, no market fee shall be livable on the 
transaction undertaken in the consumer-farmer market. 
------------------------------------------------------------------------------------------------------------ 
1. New Section 5, 5-A & 5-B inserted by (Act No 19 of 2005).dt 21.11.2005 
 
 
 
15-C. Grant, renewal or cancellation of Licence for establishment of private sub-
market yards or the consumer -farmer markets. – (1) Any person may apply to the 
Director or the authority empowered by the State Government .in this behalf  for grant of 
Licence to establish a private sub -market yard und er section 5 -A, or a consumer -farmer 
market under section 5-B, or for renewal of Licence granted under this section, in such form 
and in such manner, as may be prescribed. 
(2) An application under sub -section (1) shall accompany with such Licence fees, as 
may be prescribed. 
(3) Application received under sub -section (1) may be accepted or rejected for the 
reasons recorded in writing by the director or, as the case may be, the authority empowered 
under sub-section (1): 
Provided that a Licence under this section shall not be granted or, as the case may 
be, renewed, where – 
(i) The market committee dues are outstanding against the applicant; 
(ii) The applicant is a minor or is not bonafide; 
(iii) The applicant has been declared defaulter under this Act or the rules or bye -
laws made there under; and 
(iv) The applicant has been convicted for any offence and has been sentenced for 
imprisonment. 
 
(4) All the Licences granted or renewed under this section shall be subject to such 
terms and conditions, as may be prescribed and the Licensee shall be bound to follow terms 
and conditions of the Licence and the provisions of this Act or the rules or Bye -laws made 
there under. 
 
(5) The Director may, after such inquiry as he deems fit to make and after giving the 
Licensee a reasonable opportuni ty of being heard, cancel any Licence granted or renewed 
under this section, for the reasons recorded in writing. 
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1. New Section 5-C inserted by (Act No 19 of 2005). dt 21.11.2005 
 
 
 
 
 
CHAPTER III 
 
MARKET COMMITTEES 
 
6. 1Classification of market areas and establishment of market committees. 
– The State Government. may classify the market areas into super class, A class, B class, C 
class and D class marke t areas on the basis of the criteria as may be prescribed and shall 
establish a market committee for every such market area. 
 
7. Constitution of market committees.  – 2(1) Every market committee shall be 
constituted as prescribed and shall consist of the following seventeen members, namely:- 
 
 (a) Every super class and A class market committee shall be constituted as prescribed and 
shall consist of the following seventeen members, namely :- 
 
(i) Eight shall be agriculturists elected in the prescribed manner by such agriculturists or 
institutions of the market area as the State Government. may prescribe; 
 
(ii) Two shall be traders or brokers elected in the prescribed manner by traders and 
brokers Licenced by the market committee; 
 
(iii)  One shall be the person elected in the p rescribed manner by weighmen, measurers, 
surveyors, warehouseman and other persons Licenced by the market committee; 
 
(iv)  One shall be the member of Legislative assembly, as nominated by the State 
Government; 
 
(v) One shall be the representative of Co -operative M arketing Societies in the market 
area for which it is established as the State Government may prescribe; 
 
(vi) One shall be the representative of Central Co -operative Financing Agency in the 
market area for which it is established as the State Government may prescribe; 
 
(vii) One shall be the person elected from amongst its own members by the Municipal 
Board or Municipal Council or Municipal Corporation or Gram Panchayat in which 
the principal market yard is situated; 
------------------------------------------------------------------------------------------------------------ 
1. Section 6 of the Sub. by  (Act 8 of 2005) published in the Rajasthan Gazette, Part IV-A Extra ordinary, dated 11-5-2005.  
2. sub(i) of Section 7  Sub. by  (Act 8 of 2005) published in the Rajasthan Gazette, Part IV-A Extra ordinary, dated 11-5-2005. 
 
 
 
 
(viii) Two shall be the persons nominated by the State Government. 
(b)  Every B, C, D class market committee shall be constituted as prescribed and 
shall consist of following eleven members, namely :- 
(i) Six shall be agriculturists elected in the prescribed manner by such 
agriculturists or institutions of the market area as the State Government may 
prescribe; 
(ii) One shall be traders or a brokers elected in the prescribed manner by traders 
and brokers Licenced by the market committee; 
(iii) One shall be the representative of Co -operative Marketing Societies in the 
market area for which it is established as the State Government may prescribe; 
(iv) One shall be the person elected from amongst its own members by the 
Municipal Bo ard or Municipal Council or Municipal Corporation or Gram 
Panchayat in which the principal market yard is situated; 
(v) One shall be the persons nominated by the State Government; 
(vi) One shall be the member of Legislative assembly, as nominated by the State 
Government; 
Provided that a person to whom a Licence has been granted under sub -section(2) of 
section 4 or under section 14 shall not be eligible to become a member of the market 
committee under sub -clause(i) or sub -clause(v) or sub -clause(vi) or sub -clause(vii) of 
clause(a) and sub-clause(i) or sub-clause(iii) or sub-clause(iv) of clause(b): 
Provided further that State Government may, at any time, reduce the number of 
nominated members for any market committee and in their place may increase the number 
of members to be elected under sub -section(i) and sub-clause(ii) of clause(a) or, as the case 
may be, under sub-clause(i) and sub-clause(ii) of clause(b) as it thinks fit. 
(2) Notwithstanding anything contained in sub-section(1) – 
 
 
 
1(a) on the failure of any organ ization, persons or authority to elect a member under 
sub-section(1), the State Government shall nominate a person on behalf of such 
organization, persons or authority who is qualified to be elected as a member of 
the market committee from such organizatio n, persons or authority. If the failure 
on the part of any organization, persons or authority to elect the required number 
of members is on account of the rejection of all nomination papers at the time of 
scrutiny, then fresh election shall be held by such  organization, persons or 
authority but in case of further occurrence of such contingency, the State 
Government shall nominate the person in the aforesaid manner; and 
(b) when a market committee is constituted for the first time, all the members of the 
market committee shall be persons nominated by the State Government. 
(3) Every member of a market committee, nominated when it is first 
constituted, shall hold office for a term of two years from the date of the first general 
meeting of the market committee a nd every such member elected or nominated thereafter 
shall hold office for a term of 2five years. 
3[Provided that in case of a committee constituted under sub -section(2) (b), it shall be 
competent for the State Government at any time to terminate the term of office of all the 
members of such committee and appoint an Administrator under section 27-A] 
4(4) The State Government may, by notification, extend from time to time the 
term of office of the members of a market committee for such period or periods not 
exceeding one year in the aggregate as it thinks fit: 
Provided that if the term of office of the outgoing members of a market committee 
has expired before the commencement of the Rajasthan Agricultural Produce markets  
(Amendment) Act, 1973 it shall be deem ed to extend to and expire with the day before the 
date of the first general meeting of the market committee constituted in its place or shall 
extend to a period of one year from the commencement of the said Act, whichever is earlier: 
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1. Substituted by Section 3a of Rajasthan Act No 15 -A of 1973, published in the Rajasthan Gazette, Part IV -A Extra 
ordinary, dated 14-7-1973.  
2. sub. sec. (3) of sec. 7 Subs. by  (Act 8 of 2005) published in the Rajasthan Gazette, Part IV -A Extra ordinary, dated 11-
5-2005. substituted for the words (three years) 
3. Added w.e.f. 2.1.1978 by section 2(1) of Rajasthan Act no 7 of 1978  
4. Substituted by Section 3b of Rajas than Act No 15 -A of 1973, published in the Rajasthan Gazette, Part IV -A Extra 
ordinary, dated 14-7-1973. 
 
 
 
1Provided further that where the term of office of the members of a market committee has 
been extended under this sub -section, it shall be competent fo r the State Government at any time to 
terminate the term so extended. 
(5) 2[XXX] 
(6) If at anytime a vacancy occurs through non -acceptance of office by a person 
elected or nominated or through the death, disqualification or resignation of member, or in the  event 
of his ceasing to be a member under sub -section before the expiry of his term of office, the vacancy 
shall be filled up by the election or nomination, as the case may be of a person thereto in the manner 
specified above. 
(7) Every person elected or nominated under sub -section(6) shall hold office for so 
long only as the member in whose place he is elected or nominated would have held it, if the 
vacancy had not occurred. 
3(8) Every market committee shall elect one of its member to be the Chairman , and 
another member to be its Vice-Chairman: 
Provided that the Chairman shall be amongst the members elected under sub -clause(i) of 
clause(a), or sub-clause(i) of clause(b), of sub-section(1) of section 7, as the case may be. 
4(9) No Act of a market committee, or of ant sub-committee thereof, or of any person 
Acting as a member, Chairman, Vice -Chairman or Secretary shall be deemed to be invalid by 
reason only of some defect in the constitution or appointment of such market committee, sub -
committee, member, Chai rman, Vice-Chairman or Secretary, or on the ground that they, or any of 
them, were disqualified for such office, or that formal notice of the intention to hold the meeting of 
market committee or of the sub-committee was not duly given or by reason of such Act having been 
done during the period of any vacancy in the office of the Chairman, Vice -Chairman, Secretary or 
member of such committee or sub -committee or for any other infirmity not affecting the merits of 
the case. 
5(10) Every member of a market commi ttee shall, before taking his seat  make and 
subscribe at a meeting of the market committee, an oath or affirmation in the following form :- 
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1. Added by Section 2(ii) of Rajasthan Act No 7 of 1978.  
2. Deleted sub. sec. (5) of sec. 7 vide Noti. No F2(8)Vidhi/2/2011 dated 25.3.2011 Pub. in Gaz. of Rajasthan Extra 
ordinary part 4(Kha) dated 27.3.2011  
3. Sub. sec. (8) of 7 substituted by (Act No 8 of 20 05) pub. in Gaz. of Rajasthan Extra ordinary part 4(Kha) dated 
11.5.2005  
4. Substituted by Section 3c of Rajasthan Act No 15 -A of 1973, published in the Rajasthan Gazette, Part IV -A Extra 
ordinary, dated 14-7-1973. 
5. inserted by section 3(d)-ibid. Published  in Gaz. of Rajasthan Extra ordinary part iv-A dt 14.7.1973 
 
 
 
 “I______________ having become a member of the ________________(name of the 
market committee) swear in the name of God/solemnly affirm that I will faithfully and consciously 
discharge my duties as a member of the market committee without fear or favour”. 
(11)(a) A motion of non -confidence may be moved by any member against the 
Chairman or the Vice -Chairman by giving notice in such form and to such authority as 
may be prescribed and such notice  shall be supported by not less than one -third of the 
total number of members of the market committee, and such authority shall call within 
thirty days a meeting of the market committee to consider the motion and shall preside 
over such meeting. 
(b) If the motion against the Chairman or the Vice -Chairman is carried by a majority of not 
less than two-thirds of the members of the market committee present and voting and by 
not less than 50% of its total membership, the Chairman or Vice-Chairman shall cease to 
hold office as such and vacate the same on and from the date on which such resolution is 
carried out. A notice to this effect shall be affixed by such authority on the notice board 
of the office of the market committee. 
(c) If the motion is not carried as aforesaid or if the meeting could not be held for want of 
quorum, no notice of any subsequent motion expressing want of confidence in the same 
Chairman or Vice-Chairman shall be made until after the expiration of six -months from 
the date of such meeting. 
(12) The meeting of the market committee and quorum thereof as well as the 
conducting of business therein shall be regulated in the prescribed manner. 
1(13) The process of election of a market committee, once started shall not be 
stopped or postponed for any reason, save for a natural calamity or breakdown of law and order. 
17-A. Reservation of seats. – (1) One seat of the member to be elected under sub -clause(i) 
of clause(a), and sub-clause(i) of clause(b), of sub -section(1) of section 7 shall be reserved e ach for 
Scheduled Castes, Scheduled Tribes, Backward classes 2[xxx] respectively. 
3(1A) Out of  the total number of seats under sub -section(1) 50% shall be reserved for 
women belonging to the Scheduled Castes,  the Scheduled Tribes or  , as the case may 
be, the Backward Classes. 
3(1B) Out of the total seats of the members to be elected under sub -clause(i) of clause (a) 
and sub -clause (i) of clause (b) of sub -section (1) of section 7, 50%  [including the 
number of seats reserved for women under sub -section (1A ) shall be reserved for 
women. 
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1. New section 7-A inserted by (Act No 8 of 2005) pub. in Gaz. of Rajasthan Extra ordinary part 4(Kha) dated 11.5.200 5  
2. deleted by Rajasthan Agricultural Produce Martkets(Amendment) Act, 2009 Pub. in Gaz. of Rajasthan Extra ordinary 
part 4(ka) dated 11.9.2007 
3. inserted new clause (1A) (1B) of sub -section 1 of section 7 -A vide Raj. Agricultural Produce Markets (Amend ments) 
Act 2009 published in the Rajasthan Gazette, Part IV-A Extra ordinary, dated 11-9-2009. 
 
 
 
 
 
 
(2) Seats reserved under this section shall be allotted by rotation to different 
constituencies in the concerned market area. 
17-B. Reservation of the offices  of Chairmen. – (1) Out of the total number of 
offices of Chairman of the market committees in the State,16%, 12% and 21% shall be 
reserved for the Scheduled Castes, the Scheduled Tribes and the Backward classes 
respectively. 
(2) Out of the total n umber of offices of Chairman r eserved under sub -
section(1), 10(50%) shall be reserved for women belonging to the Scheduled Castes, the 
Scheduled Tribes or, as the case may be, the Backward Classes. 
(3) Out of the total number  of offices of the Chairman of the mark et 
committees in the State, 50% including the number of offices reserved for women belonging 
to the Scheduled Castes, the Scheduled Tribes and the Backward Classes shall  be reserved 
for women. 
(4) Offices reserved under this section shall be allotted by ro tation to different 
market committees in the State. 
17-C. Determination of reserved seats, - The seats for offices of Chairman under 
section 7 -B shall be reserved prior to the reservation of seats for the Scheduled Castes, 
Scheduled Tribes, Backward Classes and women under section 7-A. 
8. Incorporation of market committee.  – Every market committee shall be a 
body corporate by such name as the State Government may specify by notification in the 
Official Gazett ee. It shall have perpetual succession and a common seal, may sue and be 
sued in its corporate name and shall be competent to acquire and hold, lease, sell or 
otherwise transfer any property and to contract and to do all other things necessary for the 
purposes for which it is established. 
 
9. 2Powers and dutie s of the market committee.  –  (1) Subject to the 
provisions of this Act, it shall be the duty of the market committee – 
 
(i)  To implement the provisions of this Act, the rules and the bye -laws made 
there under, in the market area; 
-------------------------------------------------------------------------------------------------------------- 
1.  Raj. Act No 8 of 2005 pub. in Gaz. of Rajasthan Extra ordinary part 4(Kha) dated 11.5.2005  
2. Sec.9 substituted by (Act 19 of 2005) pub. in Gaz. of Rajasthan Extra ordinary part 4(Ka) dated 18.11.2005 
 
 
 
(ii)  To provide such facilities for marketing of agricultural pr oduce therein as 
the Director or the State Government may from time to time direct; 
(iii) To do such other Acts as may be required in relation to the 
superintendence, di rection and control of market or for regulating 
marketing of agricultural produce in any place in the market area, and for 
the purposes connected with the matter s aforesaid, and for that  purpose 
may exercise such powers and discharge such functions as may be 
provided by or under this Act; and 
(iv) To do such other things as might be required for the purpose of achieving 
the objects and requirements of this Act, the rules and bye-laws made there 
under and for facilitating working of the market committee. 
(2)  Without prejudice to the generality of the foregoing provisions market  
committee  may – 
(i) Maintain and manage the principal market yards and sub -market yards 
within the market area; 
(ii) Provide the necessary facilities for the marketing of agricultural produce 
within the principal market yard and outside the principal market yard and 
within the sub -market yards and outside the sub -market yards in the 
market area; 
(iii) Issue or refuse to issue Licence to traders, brokers, weighmen, measurers, 
surveyors, warehousemen and other persons to operate in the market area 
and renew, suspend or cancel such Licence, supervise the conduct of the 
traders, brokers, weighmen, measurers, surveyors, warehousemen and 
other persons operating in the market area and enforce conditions of 
Licence; 
(iv) Regulate or supervise the auction of agricultural produce in accordance 
with the provision and pro cedure laid down under the rules  made under 
this Act or bye-laws of the market committee; 
(v) Conduct or supervise the auction of agricultural produce in acc ordance 
with the procedure laid down under the ruled made under this Act or bye-
laws of the market committee; 
(vi) Regulate the making, carrying out and enforcement or cancellation of 
agreement of sale, weighment, delivery, payment and all other matters 
relating to the market of agricultural produce in the prescribed manner; 
 
 
 
(vii) Provide for the settlement of all disputes between the seller and the buyer 
arising out of any kind of trans action connected with the marketing of 
agricultural produce and all matters ancillary thereto; 
(viii) Take all possible steps to prevent adulteration of agricultural produce; 
(ix) Provide for grading and standardization of agricultural produce; 
(x) Make arrangements for employing by rotation, weighmen and hammals for 
weighing and transporting of goods in respect of trans actions held in the 
market yard; 
(xi) Set up and promote public partnership in establishment of an Agricultural 
Marketing Extension Unit to carry out extension Activities in its area viz., 
collection, maintenance and dissemination of informat ion in respect of 
production, sale, storage , processing, prices and movement of agricultur al 
produce; 
(xii) Take measures for the prevention of purchases and sales below the 
minimum support prices as fixed by the Government from time to time; 
(xiii) Levy, recover and r eceive rates, charges, fees and other sums of money to 
which the market committee is entitled;  
(xiv) Employ the necessary number of officers and servants for the efficient 
implementations of the provisions of this Act, the rules and the bye -laws 
made there under; 
(xv) Regulate the entry of persons and vehicles, traffic into the principal market 
yard and sub-market yards vesting in the market committee; 
(xvi) Prosecute persons for violating the provisions of this Act, the rules and the 
bye-laws and compound such offence; 
(xvii) Allotment/disposal of land or any movable or immovable property for the 
purpose of efficiently carrying out its duties; 
(xviii)  Institute or defend any suit, proceeding, application or arbitration and 
compromise such suit, proceeding, application or arbitration; 
(xix) Make payment of pay, pension, allowances, gratuities, contribution 
towards leave allowance, pensions or provident fund of the officers and 
servants employed by the market committee in the prescribed manner; 
(xx) Administer market committee fund and maintain the account there of in the 
prescribed manner; 
 
 
 
(xxi) Keep a set of standard weights and measures in each principal market yard 
and sub- market yard against which weighment and measurement may be 
checked; 
(xxii) Inspect and verify scales, weights and measures in use in a mar ket area and 
also the books of accounts and other documents maintained by the traders, 
brokers, weighmen, measurers, surveyors, warehousemen and other 
persons to operate in the market area in such manner as may be prescribed; 
(xxiii) Carry out publicity about the benefits of regulation, the system of 
transaction, facilities provided in the market yard etc. through such means 
as posters, pamphlets, hoardings, cinema slides, film shows, group 
meetings etc., or through any other means considered more effective or 
necessary; 
(xxiv)  Ensure payment in respect of trans actions which take place in the market 
yard or market area to be made on the same day to the seller, and in default 
to seize the agricultural produce in question along with other property of 
the person concerned an d to arrange for resale thereof and in the event of 
loss, to recover the same from the original buyer together with  charges for 
recovery of losses, if any, from the original buyer and effect payment of 
the price of the agricultural produce to the seller; 
(xxv) Recover the charges in respect of weighmen and hammals and distribute 
the same to weighmen and hammals if not paid by the purchaser or seller , 
as the case may be; 
(xxvi) With the prior sanction of the State Government, undertake the 
construction of roads in the ma rket area to facilitate movement of 
agricultural produce to the market for benefit of producers, sellers, traders 
operating in the market area; 
(xxvii) Collect and maintain information in respect of production, sale, storage, 
processing, prices and movement of agr icultural produce and disseminate 
such information as directed by the Director; and 
(xxviii) With a view to maintain stability in the market, - 
(a) take suitable measures to ensure that traders do not buy agricultural 
produce beyond their capacity and avoid risk to the  sellers in disposing off 
the produce; and 
(b)  grant Licence only after obtaining necessary security in cash or bank 
guarantee according to the capacity of the buyers. 
 
 
 
(3) With the prior sanction of the Director the market committee may, at its 
discretion, un der take to give grant or advance funds to the Board, the Public Works 
Department or any other Department or a public undertaking or any other agency authorized 
by the Director for the construction of roads or godowns in the market area to facilitate 
transportation and storage of agricultural produce or for the purpose of development of the 
market yard. 
(4) In addition to the duties  aforementioned the market committee shall also 
be responsible for – 
(a) the Maintenance of proper checks on all receipts and payment by its officers; 
(b) the proper execution of all works chargeable to the market committee fund; and 
(c) keeping a copy of this Act and of the rules and notifications issued there under 
and of its bye-laws, open to inspection free of charge at its office. 
10. Appointment of sub -committees and joint -committees. – The market 
committee may appoint one or more of its members to be a sub -committee or to be a joint -
committee for the conduct of any work or to report on any matter or matters and may 
delegate to such committee or any one or more of its members such of its powers or duties 
as it may think fit. 
11. Appointment and salaries of servants of the market committee. – (1) The 
market committee may employ in the prescribed manner such officers and servants as may  
be necessary for the management of the market and may pay such officers and servants such 
salaries as the market committee thinks fit. 
(2) The market committee shall, in the case of any officer or servant of 
Government. whom it employees, pay such pension  contribution, gratuity or leave 
allowance as may be required by the conditions of his service under the State Government. 
for the time being in the force. 
(3) The market committee may also, in the case of any of its officers and 
servants, provide for the payment to them of such leave allowances, pensions or gratuities as 
it deems proper and may contribute to any provident fund which may be established for the 
benefit of such officers and servants. 
(4) The powers conferred by this section on the market comm ittee shall be  
exercised subject to any rules, which may be made in this behalf by the State Government. 
111-A. Direction to reduce the staff or terminate irregular appointments. – (1) If, 
at any time, it appears to the Director that the number of persons employed by a market  
------------------------------------------------------------------------------------------------------------- 
1. Rajasthan Act No 15-A of 1973 published in the Rajasthan Gazette, Part IV-A Extra ordinary, dated 14-7-1973. 
 
 
 
 
committee is in excess of the requirements or that an irregular appointment has been made 
by the market committee, the Director shall issue a direction to reduce the number of such 
employees or terminate the irregular appointment and the market committee shall, on su ch a 
direction from the Director, reduce the number of such employees or term inate the irregular 
appointment, 
 
(2) Any direction issued to the market committee under sub-section(1) shall be 
complied within such time as the Director may, in each case, speci fy which in no case shall 
be less than one month and in case of non -compliance, the Secretary shall, after giving one 
month’s notice to the concerned employee, stop payment of pay and allowances to such 
employee and terminate his services. 
 
(3) Any person aggrieved by an order of the market committee or from the 
notice of termination of services served  by the Secretary may, within fifteen days from the 
date of receipt of such order or notice, appeal to the State Government and the order of the 
State Government, in appeal shall be final and shall not be called in question by any court. 
 
111-B. Appointment of Secretary of market committee. – (1) There shall be 
appointed a Secretary for each market committee who shall be the Chief Executive Officer 
of the marke t committee and shall exercise such powers and perform such duties as are 
specified in this Act or in the rules or bye-laws. 
(2) The Secretary shall be a person in the full time employment of the State 
Government .and he shall be governed by the Rajasthan Service Rules and shall get besides 
pay such allowances as may be fixed by the State Government. 
 
12. Members, etc, to be deemed public servants.  – All members, officers and 
servants of every market committee and of its sub -committees and joint committees 
appointed under section 16  shall be deemed to be public servants within the meaning of 
section 21 of the Indian Penal Code, 1860(Central Act 45 of 1860). 
 
13. Execution of contracts. – (1) Every contract entered into by market 
committee shall be in writing and sha ll be signed on behalf of the market c ommittee by its 
Chairman and  two other members of the committee authorized by the committee in this 
behalf. 
------------------------------------------------------------------------------------------------------------------------------------------------------------ 
1. Inserted by section 4 of Rajasthan Act No 15-A of 1973 pub. in the Rajasthan Gazette, Part IV-A Extra ordinary, dt 14-7-1973. 
 
 
 
(2) No contract, other than a contract executed, as provided in sub -section(1), 
shall be binding on the market committee. 
 
14. 1Power of market committee to issue Licence. – (1) Where a market is 
established under the provisions of this Act, the market committee may issue and renew 
Licence, in accordance with the rules and bye -laws, to tr aders, brokers, weighmen, 
measurers, processors, surveyors, warehousemen or other per sons to operate in the market 
on payment of the prescribed fees. 
(2) The market committee may also grant Licence, - 
(a) for direct purchase from the agriculturists for the  following purposes, 
namely:- 
 
(i) to processor for processing; 
(ii) to exporters for export of agricultural produce; 
(iii) for trade of agricultural produce of particular specification; and 
(iv) for grading, packing and trans acting in other way by value addition of 
agricultural produce: 
 
2“Provided that no sale or purchase shall be permitted under this clause within the 
market proper except for the purposes specified in sub clause(i) and (iv).” 
(b) for testing of chemical composition of agricultural produce. 
314-A. Licence for more than one market areas. – (1) The Director may issue 
Licences, in accordance with the rules, to traders and processors to operate in more than one 
market areas on payment of the prescribed fees. 
(2) The Director may refuse to issue a Licence for the reasons to be recorded in 
writing. 
(3) All Licences issued under this section shall be subject to the provisions of this 
Act and the rules and bye-laws made there under. 
314-B. Suspension and cancellation of Licences issued under section 14 -A. – (1) 
The Director may, after such enquiry as he deems fit to make and after giving , in the  
----------------------------------------------------------------------------------------------------------------------------- ---------------------------- 
1. Rajasthan Act 19 of 2005 pub. in the Rajasthan Gazette, Part IV-A Extra ordinary, dated 21-11-2005. 
2. clause (a) sub -section (2) of sec. 14 vide Noti. No F.2(7)Vidhi/2/2011 dated 27.3.2011  published in the Rajasthan 
Gazette, Part IV-A Extra ordinary, dated 27.3.2011 
3. inserted New sec. 14-A & 14-B vide Noti No F.2(12)vidhi/2/2008 dated 11.4.2008 published in the Rajasthan Gazette, 
Part IV-A Extra ordinary, dated 11.4.2008. 
 
 
 
 
 
 
prescribed manner, the Licensee a reasonable opportunity of being heard, suspend or cancel 
a Licence issued under section 14-A on any of the following grounds namely:- 
(a) that the Licensee is found to have committed a breach of any of the terms or 
conditions of his Licensee, or 
(b) that the Licensee is found to have contravened any of the provisions of this  
Act of the rules or bye-laws made there under, or 
(c) that the Licensee has been convicted of an offence punishable under this Act 
or the rules or bye-laws made there under, or 
(d) On any other prescribed ground. 
(2) When a Licence has been  suspended or cancelled , the holder of the 
Licence shall forthwith produce such Licence in the office of the Director for being 
endorsed in the prescribed manner and shall not be entitled to claim on account of such 
suspension or cancellation any compensation or refund of the wh ole or any part of the 
Licence fee or of any other moneys. 
15. Suspension or cancellation of Licences under section 14.  – (1) The market 
committee issuing or renewing a Licence under section 14  may, after such enquiry as it 
deems fit to make and after giving ,  in the prescribed manner, the Licence a reasonable 
opportunity of being heard, suspend or cancel a ny such  Licence on all or any of the 
following grounds, namely- 
(a) that the Licence is found to have committed a breach of any of the terms or 
conditions of his Licence, or 
(b) that he is found to have contravened any of the provisions of this Act or the rules 
or bye-laws made thereunder, or 
(c) that he has been convicted of an offence punishable under of this Act or the rules 
or bye-laws made thereunder: or 
(d) On any other prescribed ground. 
(2) When a Licence has been  suspended or cancelled, the holder of Licence 
shall forthwith produce such Licence in the office of the market committee for be ing 
endorsed in the prescribed manner and he shall not be entitle d to claim on account of such 
suspension or cancellation any compensation or refund of the whole or any part of the 
Licence fee or of any other money. 
1[(3) The Chairman or the Secretary of market committee may , for reasons to 
be recorded, suspend a Licence for a period not more than fourteen and seven days 
 
 
 
respectively on any of the grounds on which a market committee may suspend a Licence 
under sub-section(1). 
(4) The Director may for reasons to be recorded in writing , by order, suspend 
or cancel any Licence granted or renewed under section 14 on any of the grounds mentioned 
in sub-section(1). 
Provided that no order under this sub -section shall be made without giving an 
opportunity of being heard to the market committee and the person against whom the Action 
is proposed to be taken.] 
 
115-A. Power to remove persons from market yards. – (1) The Chairman, Vice -
Chairman or Secretary of  the market committee or any other member, officer or servant 
authorised by the market committee in this behalf, may stop and r emove any person from 
the principal market yard or sub -market yards or yards found to be operating without 
holding a valid Licence or disobeying the orders in regard to the procedure to be f ollowed in 
auction, weighment or any other matter, relating thereto. 
(2) Such removal shall be without prejudice to any punishment to which the 
person so prevented may be liable under this Act and rules or bye-laws made there under. 
2[15-B. Regulation of market of agricultural produce. – (1) No person shal

Excerpt shown. Open the full act in Lexace.

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