The UTTRAKHAND STATE AGRICULTURAL PRODUCE AND LIVESTOCK MARKETING ( PROMOTION & FACILITATION )

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THE UTTRAKHAND STATE AGRICULTURAL  PRODUCE AND LIVESTOCK 
MARKETING   ( PROMOTION & FACILITATION ) ACT, 2020 
UTTARAKHAND ACT NO 28 OF 2020 
AN 
ACT 
To provide for  geographically restriction -free trade transaction of agricultural 
produce including livestock across the Uttarakhand State; to give freedom to the 
agriculturists to sell their produce across time and space; to enhance transparency in 
trade operations and price settlement mechanism through adoption of electronic and 
other innovative form of technology; to promote emergence of multiple channels for 
competitive marketing, agri -processing and agricultural export; to encourage 
investments in development of mark ets and marketing infrastructure in the State  of 
Uttarakhand; and whereas it is expedient to put in place facilitative regulation, 
professional management and conducive policy framework therefor and purposes 
connected therewith and to lay down procedures and systems thereto. 
Be it enacted by the Uttarakhand State Legisla tive Assembly in the seventy  first 
year of the Republic of India as follows: 
 
 
CHAPTER –I 
PRELIMINARY 
Short title, extent 
and 
commencement. 
1. (1) This Act may be called “The Uttarakhand  
State Agricultural Produce and Livestock Marketing 
(Promotion & Facilitation) Act, 2020. 
 (2) It extends to the whole of State of Uttarakhand. 
 (3) It shall come into force at once. 
Definition. 2. In this Act, unless there is anything repugnant in 
the subject or context - 
 
 
(1) “Administration” means an administration of State 
Government; 
 (2) “Ad-hoc buyer” includes a buyer to be registered 
under Section 79 of this Act; 
 (3) “Agricultural produce” includes all produce, 
whether processed or not, of agriculture, 
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horticulture, apiculture, forest excluding trees grown 
on private land, specified in the schedule ; 
 (4) “Agriculturist ” means a person who is engaged in 
production of agricultural produce including rearing 
of  livestock by  himself   or  by  hired  labour  or 
otherwise, including tenant; 
 
“Agriculturist” also includes association of 
farmers, by whatever name called, registered under 
any law for the time being in force and is engaged  
in aggregation of member farmers’ produce 
including livestock; 
(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 District Collector / 
Deputy Commissioner/ District Magistrate/ Officer 
In-charge of Land Revenue of the District by 
whatever name it may be called in which such 
person is engaged in production of agricultural 
produce and/or rearing of  livestock, 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 States). 
(5) “Assaying lab” means a laboratory set up, as 
prescribed in the Rules/Bye -laws/guidelines/ 
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 Marketing Board, established 
by Uttarakhand State Government; 
(7) “Buyer” means a person, who himself or itself or on 
behalf of any person or agent buys or agrees to buy 
agricultural produce including livestock in the market; 
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(8) “Bye-laws” means subject to any Rules made by 
State Government under this Act, the Market 
Committee may, in respect of principal market yard 
and sub -market yard(s) or other  sub  market -  
yard(s)  under  its  management, make  Bye-laws 
for the regulation of business and conditions of 
trading therein”; 
(9) “Cold storage” means cold storage declared as 
market sub-yard under Section 12 of this Act”; 
(10) “Commission 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 o ther level of transaction, on 
e-platform or any other mode of transaction and 
activities ancillary thereto, keeps it in his custody 
and controls it during the process of its sale or 
purchase, and collects payment thereof, if required, 
from the buyer and pa ys it to the seller, and 
receives by way of remuneration a commission or 
percentage upon the amount involved in such 
transaction; 
(11) “Delineated 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; 
(12) “Director” means Director of Agricultural 
Marketing or any other officer, excepting Managing 
Director of State Agricultural Marketing Board, 
appointed by the State Government, by notification 
to exercise and/or perform such of the powers or 
functions of the Director of Agricultural Marketing 
under the provisions of this Act or the Rules, as 
may be prescribed in notification; 
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(13) “Direct marketing” in relation to agricultural 
produce, means direct wholesale purchase of 
agricultural produce from the farmers by the 
processors, exporters, bulk buyers, etc outside the 
principal market yard, sub -market yard, private 
market yard and market sub -yard under S ection 
13 of this Act; 
(14) “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; 
(15) “Electronic trading platform” means electronic 
platform set up either by State Government or its 
agencies or a person licenced under Section 54 for 
conducting trading in notified agric ultural produce 
including livestock through electronic media or by 
any means of communication in which registration, 
buying and selling, billing, booking, contracting and 
negotiating are carried out online through computer 
network/ internet or any other su ch electronic  
device; 
(16) “Export” means dispatch of agricultural produce 
including livestock outside India; 
(17) “Farmer-Consumer Market Yard” means market 
yard established under Section 11 of this Act ; 
(18) “Farmer-Producer Company (FPC)” means a 
company of farmer-producer members as defined in 
Section IXA of the Indian Companies Act,1956, 
including any amendments thereto, re -enactment 
thereof and incorporated with the Registrar of 
Companies; 
(19) “Government” means the State Government; 
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(20) “Government Agency” means State Agricultural 
Marketing Department/ Directorate, State 
Agricultural Marketing Board (SAMB), Agricultural 
Produce and Livestock Market Committee 
(APLMC) established or constituted under this 
Act; 
(21) “Licence” means licence granted under the 
provisions of this Act; 
(22) “Licensee”   means a  person holding a licence 
issued under the provisions of this Act; 
(23) “Livestock” means cows, buffaloes, bullocks, bulls, 
goats and sheep, and includes poultry, fish and 
such other animals, and products thereof, specified 
in the schedule ; 
(24) “Managing Director” means Managing Director of 
the State Agricultural Marketing Board or any other 
Officer, except the Director of Agricultural 
Marketing, appointed by the State Government, to 
exercise and/or  perform  such of the powers and 
functions of the Managing Director or Chief 
Administrator or Administrator or Chief Executive 
Officer or Secretary, or by whatever name it is 
called, of the State Agricultural Marketing Board; 
(25) “Market Committee ” means the Agricultural 
Produce and Livestock Market Committee 
established under the provisions of this Act or 
established under existing regulation; 
(26) “Marketing” in relation to Agriculture Produce 
means all activities involved in the flow of 
agricultural produce from production point 
commencing at the stage of harvest till the same 
reaches the ultimate consumers viz. grading, 
processing, storage, transport, channels of 
distribution and all other functions involved in the 
process; 
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(27) “Market Sub -Yard” means warehouse/ silos/ cold 
storage or other such structure or place declared to 
be market sub -yard or deem to be market  sub - 
yard under Section 12; 
(28) “Market Yard” in relation 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; 
(29) “Market Yard of National Importance” means a 
market yard as notified under Section 9 of this Act; 
(30) “National 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”; 
(31) “Notified Agricultural Produce and Livestock” 
means agricultural produce and livestock, specified 
in the schedule of this Act; 
(32) “Over 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 furnished to the 
Market Committee; 
(33) “Person” includes individual, a co -operative 
society, Hindu Undivided Family,  a company or 
firm or an association or a body of individuals, 
whether incorporated or not; 
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(34) “Petty 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; 
(35) “Prescribed” means prescribed by Rules and/or 
Bye-laws made under this Act; 
(36) “Private  Market  Yard” means a market yard 
established under Section 10 of this Act; 
(37) “Processing Unit” means processing unit declared 
as market sub-yard under Section 12 of this Act”; 
(38) “Processor” 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; 
(39) “Registration” means registration made under this 
Act for the purpose as specified; 
(40) “Regulation” means regulation made by the Board 
under Section 98 of this Act; 
(41) “Retail 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; 
(42) “Revolving Market Development Fund” means a 
non-lapsable Fund maintained by Director under 
Section 112 (1) of this Act; 
(43) “Rules” means rules made under this Act by the 
State Government  ; 
(44) “Seller” means a person who sells or agrees to  
sell agricultural produce including livestock  for 
consideration of price; 
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(45) “Schedule” means the Schedule appended to this 
Act; 
(46) “Silo” means silo declared as market sub -yard 
under Section 12 of this Act ; 
(47) “Special Commodity Market Yard” means a 
market yard as notified under Section 8 of this Act; 
(48) “State” means  Uttarakhand State; 
(49) “Trader” 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 may be , except 
for the purpose of domestic consumption ;  
(50) “Year” means the year as may be notified by the 
State Government ; 
(51) “Warehouse” means warehouse declared as 
market sub-yard under Section 12 of this Act”. 
 
 
CHAPTER-II 
ESTABLISHMENT OF MARKETS 
 
Notification of 
Intention of 
regulating 
marketing of 
specified 
agricultural produce 
and livestock. 
3.(1) The State 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 n otice 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 und er 
this Act except after consultation with the municipal 
Board or municipal council, as the case may be. 
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(2) The notification under sub-section (1) shall state that 
any objections or suggestions which may be 
received by the Government within such period as 
shall be specified in the notification, not being less 
than thirty days, will  be considered by the 
Government. 
 (3) Government may hold consultations with Local 
bodies, including Panchayati  Raj Institutions (PRIs) 
and autonomous district councils who own and 
operate rural periodical markets or haats or any other 
such markets for marketing of agricultural produce 
and livestock within their jurisdictional area, to  bring  
such markets under th e regulation of this Act, so as 
to develop these markets to efficiently function as 
marketing platform nearest to the farm gate. 
Declaration of 
whole State as one 
unified market area. 
4. Subject to the notification made under Section 3 and 
after considering such objections and suggestions as 
may be received from any source before expiry of 
such period, the Government may, by another 
notification, declare the whole State as one unified 
market area specified in the notification issued under 
Section 3 of this Act for the purpose of regulation of 
marketing of all or any of the kinds of agricultural 
produce and Livestock.  
 
Explanation: The area so declared shall be a single 
unified market area for the whole State for regulation 
of marketing of notified agricultural produce and  
livestock. 
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Notification of 
delineated market 
area. 
5. 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 
selection of the Members of such  Market Committee 
and undertaking development activities therein. 
 
Explanation: The Market Committee shall not 
regulate marketing of notified agricultural produce 
and livestock in its delineated market area. The 
Market    Committee   shall    enforce    re gulation   
on marketing    of    notified    agricultural    produce  
and livestock within the principal market yard, sub -
market yard(s) and market sub-yard(s). 
Alteration/ 
Amalgamation of 
delineated market 
area and of items of 
agricultural produce 
and livestock. 
6.(1) Subject to the procedure specified in Sections 3  and 
5, Government 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, if any, 
under this Section, it shall not be necessary for the 
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. 
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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. 
7. (1) The 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 10 ; 
(e)  private market sub -yard(s) managed by a 
person ,holding a licence under Section 12 ; 
(f) 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 11 ; 
(h) electronic trading platforms . 
 
 (2) The Government may, 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 sub -market 
yard or market 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, 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. 
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 (3) The Government may, by notification, declare a 
‘place’, licenced under Section 73, to be private 
market yard, private market sub - yard, private 
farmer-consumer market yard, as the case may be, 
for 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, 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 licenced for the purpose 
under this Act. 
Establishment and 
notification   of 
“Special 
Commodity Market 
Yard”. 
8. (1) Government 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 throughput 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 market and 
such other market; 
(ii). cotton market; 
(iii). medicinal and aromatic plants market;  
(iv). livestock market including camel market, fish 
market, poultry market and such other 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”. 
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Establishment and 
notification of 
“Market Yard of 
National Importance 
(MNI)”. 
9. Government may designate and notify the existing 
any 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 throughput, value, upstream catchment area, 
down-stream number of consumers served and 
special infrastructure requirements therefor: 
 
Provided 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, 30 per cent may arrive from not 
less than two other States. 
Establishment of 
private market yard. 
10. (1) Subject to such reasonable conditions and such 
fee as may be prescribed, the 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 licenced 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. 
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 (4) The private market yard licensee shall contribute, of 
such user charge collection and registration fee, to 
the separate “Revolving Marketing Development 
Fund” maintained by the Director at the rate in 
percentage at par with Market Committee. 
 
 (5) The Director will spend the money from such Fund 
under sub -section (4) in development of common 
marketing infrastructure, 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)  for conduct  
of business and activities ancillary thereto in the 
licenced private market yard. 
Establishment of 
farmer- consumer 
market  yard  
(direct 
sale  of  agricultural 
11.(1) Subject to such terms & conditions and fee, as may 
be prescribed, the Director or the Officer authorized 
by  him,  may  grant licence to a  person to  establish 
farmer-consumer    market   yard   for   marketing   of  
specified agricultural produce in retail. 
produce by farmer 
to consumer 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 be prescribed. 
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 (3) The farmer -consumer market yard licensee may 
collect the user charge on the sale of agriculture 
produce from the seller and amount  so  realized 
shall be retained by farmer -consumer market yard 
licensee: 
 
Provided that Government in public interest may from 
time to time, by notification, put ceiling on the rate of 
collection of user charge. 
Declaring 
warehouse/silos/ 
cold storage or 
other such 
structure or place  
as  market sub-
yard. 
12. (1) 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 Director 
  or an Officer authorized by him, 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. 
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 (3) The licensee of such warehouse/ silos/ cold storage 
or other such structure or place, may collect user 
charge on notified  agricultural produce  transacted 
at the declared market sub-yard under Section 12, 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 Director at the rate in percentage 
at par with Market Committee. The Fund will be 
utilized for t he purposes and in the manner mutatis 
mutandis to Section 10 (5) of this Act. 
Direct marketing 
(wholesale direct 
purchase from 
farmers   outside 
the market yard, 
sub- market yard, 
private market 
yard). 
13. (1) Collection/aggregation centres in the proximity of the 
production areas may be set up by a person with 
infrastructure, as may be 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 centre , 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. 
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 (4) The Licensing Authority can seek any type of 
additional information from the direct marketing 
licensee; and can also inspect and issue direction 
relating to functioning of the such wholesale 
purchases and the activities incidental thereto. 
 (5) The direct marketing licensee shall be liable to pay 
one-fourth of the applicable market fee on 
wholesale purchases made. The such licensee shall 
deposit the due amount towards “Revolving 
Marketing Development Fund” maintained by 
Director for the month by 7 th day of the next month. 
The Fund will be utilized for the pur poses and in the 
manner mutatis mutandis to Section 10 (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. 
 
 
CHAPTER-III 
CONSTITUTION OF MARKET COMMITTEE 
Establishment  of 
Market 
Committee and 
14. (1) For every delineated market area, there shall be a 
Market Committee consisting of a Chairperson, a Vice- 
Chairperson and other Members. 
its incorporation.  
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(2) Every Market Committee established under this Act  
shall be a body corporate by such name as the 
Government may,  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, acq uire, 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 Director. 
 
Provided further that the 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 be. 
 
Provided also that Market Committee may, with the 
prior approval of the Director 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 shall for 
all purposes, be deemed to be a local authority. 
(4) The Market Committee shall be classified by the 
Director, subject to the prescribed guidelines, 
considering throughput and other consideration as 
Director deems fit, for the purpose of laying down the 
norms for staff, establishment expenditure and other 
expenses and allowances required therefor. 
 
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Vesting of 
property  of 
Local Authority 
in Market 
Committee. 
15. (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 market 
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 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 requir ed by the Market 
Committee shall vest in the Market Committee for the 
purposes of this Act and the Local authority shall be paid 
such compensation as may be determined by the 
Collector under sub-section (5): 
 
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 
Collector may within thirty days from the date of such order, 
appeal to the Government. 
 (3) The local Authority shall deliver possession of the land 
or building vesting in 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 Collector shall take 
possession of the land or building and cause it to be 
delivered to the Market Committee. 
20 
 
 (4) The Collector 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 installments with 
interest thereon as the Collector may fix. 
Acquisition of 
land for Market 
Committee and 
/or Board. 
16. (1) When any 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 
agreement, 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 
“The Right to Fair Compensation and Transparency in 
Land Acquisition, Rehabilitation and Resettlement Act, 
2013  and/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. 
21 
 
 (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 (1) or 
divert 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, Municipal Council, Notified Area, 
Gram Panchayat or a Special Area De velopment 
Authority, as the case may be. 
 
Constitution of 
the first Market 
Committee. 
 
17. (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. The first Market 
Committee so constituted may consist of Members 
including Chairman  and  Vice -Chairperson, not less 
than fifteen, which may include ten agriculturist 
members, as may be prescribed. Other five Members 
may be- 
(i) three Members , one each from departments 
of agriculture/ horticulture, cooperation and 
agricultural marketing of Government  ; 
 
(ii) one member  from cooperative marketing 
society; and 
 
(iii) one member from Local Authority 
(Mahanagarpalika, Nagarpalika, Panchayat 
Samiti or Zila Parishad, as the case may be). 
 
Provided that the Chairperson and Vice -Chairperson 
shall be so nominated from amongst the agriculturist 
members. 
 
22 
 
 Provided further that Government may abide by the 
reservation policy of the Government in nomination of 
agriculturist Members. 
 
   Provided also that the Government 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 of Administrators; so 
appointed, shall, for all purposes, b e considered to be 
the market committee constituted for the first time. 
(2) Government or the 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 th e event of death, resignation, leave or 
suspension of the officer -in-charge, a casual vacancy 
shall be deemed to have occurred in such office and such 
vacancy shall be filled, as soon as may be, by 
appointment of a person thereto by the Government or 
the D irector and until such  appointment is made, a 
person deputed/ nominated by the Director shall act as 
Officer-in-charge. The services of Officer -in-charge shall 
be 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 two 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 
23 
 
  Committee. 
 
Provided further that Government or the 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 
Director. 
Constitution of 
the second and 
subsequent 
Market 
Committee. 
18. (1) Save as provided in Section 17, a Market Committee 
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 23; 
 
(b) ten representatives of agriculturists 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 this Act 
and the Rules made thereunder: 
 
Provided that no agriculturist may be qualified to be 
elected as representative of agriculturists of the second 
Market Committee unless he has sold his agricultural 
produce at least once in preceding one year, or five 
times in five years for subsequent Market Committee, in 
the principal market yard or sub -market yard falling in 
the delineated market area. 
 
(c) One representative of traders resident of a delineated 
market area, possessing such qualifications, as may be 
prescribed, elected from amongst the licenced traders 
resident of such delineated  market area: 
 
Provided that no trader shall be a voter of more 
than one Market Committee at a time. 
24 
 
 Provided further that he is otherwise not 
disqualified for being so elected under the provisions of 
this Act or any other law for time being in force. 
 
(d) One representative of licenced commission agent , 
possessing such qualifications, as may be prescribed, 
elected from amongst the licence holder commission 
agents , granted by the Market Committee: 
 
Provided that no commission agent shall be a voter of 
more than one Market Committee at a time. 
 
Provided further that he is otherwise not disqualified 
for being so elected under the provisions of this Act or 
any other law for time being in force. 
 
(e) One representative of the weighmen, hammals  and 
other market functionaries, possessing such 
qualifications, as may be prescribed, elected from 
amongst the licence holder weighmen, hammals and 
other market functionaries, granted by Market 
Committee: 
 
Provided that no weighmen, hammals and other 
market functionaries shall be a voter of more than one 
Market Committee at a time. 
 
Provided further that he is otherwise not disqualified 
for being so elected under the provisions of this Act or 
any other law for time being in force. 
 
(2) 
 
Every  Market Committee will have following other 
committee Members- 
 
(a) One representative of the co -operative marketing 
society functioning in the delineated market area who 
shall be elected by the managing committee of such 
society: 
 
Provided that if more than one such society functions 
25 
 
  in the delineated market area, such Member shall be 
elected by all the Members of the managing committees 
of such societies. 
 
Provided further that nothing in this clause shall apply 
if the managing committee of any so ciety stands 
superseded under the provisions of the State Co - 
operative Societies Act. 
 
(b) An officer of the agriculture/horticulture 
department of the Government to be nominated by the 
Director of Agriculture/Horticulture; 
 
(c) One representative of the Gram Panchayat or 
Zilla Panchayat that falls within the jurisdiction of the 
delineated market area nominated by the Chairperson 
of the Zilla Panchayat: 
 
Provided that in the Market Committee situated at 
the district headquarters, the representative shall be 
nominated from amongst the Members of the Zilla 
Panchayat only. 
 (3) Only Members under sub-section (1) shall have a right 
to vote. 
 (4) Government may make Rules for the preparation of voters' 
list and conduct of election. 
 (5) Every election and nomination of the Member shall be 
notified by the Collector/ Director in the official gazette. 
 (6) No person may be Member of the Market Committee 
more than two terms. 
26 
 
Division   of 
delineated 
market area for 
constituencies 
and reservation 
of seat. 
19. (1) The Collector shall, by notification or otherwise, divide a 
delineated market area into as much number of 
constituencies equal to the number of the 
representatives of the agriculturist to be chosen from 
such area but not less than ten. 
 (2) In case of  direct election for agriculturist Members to a 
Market Committee, reservation of seats for scheduled 
castes, scheduled tribes, other backward classes and 
women will be as per the Government policy, as may be 
prescribed. 
Qualification to 
vote and be the 
representative of 
agriculturist. 
20. (1) Every person- 
 
(a) whose name is entered as land owner in the village 
land records or is a tenant as per the State’s respective 
Land Reforms Act ; 
 
(b) who has completed the age of 18 years; and 
 
(c) whose name is included in the voter's list prepared 
under the provisions of this Act and the Rules made 
there under, shall be qualified to vote at the election of a 
representative of agriculturists: 
 
Provided that no person shall be eligible to vote in more 
than one constituency. 
 (2) No person shall be qualified to be elected as a 
representative of agriculturists unless- 
 
(a) his name is included in the list of voters as 
agriculturist of the delineated market area; 
 
(b) he is otherwise not disqualified for being so elected 
under the provisions of this Act or any other law for time 
being in force. 
27 
 
  
(3) 
 
No person shall be eligible for election for more than one 
Market Committee or constituency as the case may be. 
Provision for 
election. 
21. Subject to the provisions of this Act, the Chairperson, 
Vice-Chairperson, Members of the Market Committee 
shall be elected in the manner prescribed in the Rules. 
Such Rules may provide also for preparation and 
maintenance of the lists of voters and their qualification 
  and disqualification, the payment of deposits and their 
forfeitures, reservation of seats and all matters 
connected thereto. 
 
Superintendence, 
direction and 
control of 
elections. 
 
22.(1) 
 
Subject to the directions of the Director, the 
superintended, direction and control of the preparation  
of the lists of voters for and the conduct of all elections 
to the Market Committee , shall be vested in the District 
Collector. 
 (2) Government shall make available to the District Collector 
such staff and Funds as may be necessary for the 
discharge of the functions and responsibilities conferred on 
District Collector  under  this Act. 
 (3) All expenditure in connection with or inciden tal to the 
election of Chairperson, Vice-Chairperson and Members 
to the Market Committee shall be met from the 
consolidated Fund of the State. 
 (4) Notwithstanding anything contained in any law for the time 
being in force , Government or State Election Commission 
or any other body authorized therefor may issue instructions 
relating to all matters connected with elections to the Market 
Committee including directions for cancellation of the 
calendar of events or postponement of polls. 
28 
 
Election of 
Chairperson and 
Vice- 
Chairperson. 
23. (1) Every person shall , unless disqualified under the 
provisions of this Act or any other law for time being in 
force , as the Chairperson and the Vice -Chairperson of 
the Market Committee, be qualified to be elected by 
direct election by the persons qualified to vote for the 
election of representatives of agriculturists under Section 
20, traders, commission agents and other market 
functionaries under Section 18: 
 
Provided that no person shall be eligible for election 
as  Chairperson  and Vice-Chairperson unless he is 
qualified to be elected under Section 20. 
 (2) Reservation of seats to election of the Chairperson and 
the Vice -Chairperson for scheduled castes, scheduled 
tribes, other backward classes and women will be as per 
the Government policy, as may be prescribed. 
 (3) No person shall be eligible to contest election 
simultaneously for office of the Chairperson, Vice - 
Chairperson and a Member. 
 (4) If any delineated market area fails to elect a Chairperson 
and/ or Vice -Chairperson, fresh election proceedings 
shall be initiated to fill the office within six months : 
 
Provided that pending the election of Chairperson 
under this sub-section the Vice-Chairperson elected shall 
discharge all the functions of the Chairperson. 
 
Provided further that pending the election of 
Chairperson and Vice -Chairperson under this sub - 
section, the officer authorized by the Director shall 
discharge all the functions of the Chairperson. 
Term of the office 
of Chairperson, 
Vice-Chairperson 
and Members. 
24.(1) The Chairperson, Vice -chairperson and elected Member 
shall, save as otherwise provided in this Act, hold office 
for term of 5 years from the day of assuming the office or 
till the continuation of Market Committee, whichever is 
earlier. 
29 
 
 (2) Notwithstanding anything contained in sub -section (1), a 
person who is a nominated Member of Market 
Committee by virtue of being a representative of co - 
operative marketing society, agriculture/ horticulture 
department and Gram Panchayat or  Zilla Panchayat,  as 
the case may be, shall cease to be such member on his 
ceasing to be a Member of the managing committee of 
the society or Gram Panchayat or Zilla Pa

Excerpt shown. Open the full act in Lexace.

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