GOVERNMENT OF ANDHRA PRADESH ABSTRACT
Rules - Andhra Pradesh (Agricultural Produce & Livestock) Markets Act, 1966 Amendment to the Andhra Pradesh (Agricultural Produce & Livestock) Markets Rules, 1969 - Notification - Issued.
AGRICULTURE & COOPERATION (MKTG.II) DEPARTMENT
G.O.Ms.No.377 Dated 29-09-2005 Read the following
1. G.O.Ms.No.1900, Food & Agriculture (Legislation) Department,
3. From C&DoM., Lr.No.L(l)764/2005, Dated 21.7.2005.
The following notification will be published in the Extra-Ordinary issue of the
Andhra Pradesh Gazette dated
Whereas, in view of the changed scenario in the trading of Agricultural commodities and with the advent of World Trade Organisation, the Government of India have piloted a Model Markets Act providing with various options and communicated to all the States for adoption. The Model Act is mostly based on the Andhra Pradesh Markets Act, 1966, with a few exemptions like private marketing and contract farming. As a part of liberalization, certain amendments have to be made to the Andhra Pradesh (Agricultural Produce and Livestock) Markets Rules, 1969 relating to issue of licences by increasing licence fee, re-fixing the turnover and period of licence etc.;
And whereas Govt. have carefully studied the several
issues involved and
considered the need to proceed with certain amendments to the existing A.P.
(Agricultural Produce & Livestock) Markets Act, 1966.
And whereas, the Governor of Andhra Pradesh has
promulgated the Andhra
Pradesh (Agricultural Produce and Livestock) Markets (Amendment) Ordinance, (A.P.
Ordinance No.4 of 2005) 2005 and A.P. Ordinance No. 11 of 2005 suitably amending the
provisions of the said Markets Act, 1966 and the same have been published in Part IV-B,
Extraordinary the Andhra Pradesh Gazette on 10tln May, 2005 and 10.06.2005
whereas, it is proposed to amend the Andhra Pradesh (Agricultural produce
and Livestock) Markets Rules, 1969 issued in G.O.Ms.No.1900, F&A Department,
dt.17.10.1969 suitably so as to make provisions for private marketing and contract
Now, therefore, as required under sub section (4) of
section 33 of the Andhra
Pradesh (Agricultural produce and Livestock) Markets Act, 1966, notice is hereby given
that the said amendment will be taken into consideration by the Government on or after
the expiry of a period of thirty (30) days from the date of publication of this Notification
in the Andhra Pradesh Gazette and any objections or suggestions which may be received
with respect thereto may be considered by the Government of Andhra Pradesh.
6. The objections and suggestions may be sent to Principal Secretary to
Government, Agriculture & Cooperation Department, Andhra Pradesh,
In the said Rules:
I After rule-53, the following rule shall be inserted, namely,
"53-A:- Application for grant of licence under sub-section (7) of section 7 of the Act and fees chargeable therefor.
Any person desiring to obtain a licence
to establish a private market in a
notified area within the State shall make an application to the Government
through the Director of Marketing inForm.7-A.
such application shall be accompanied with a licence
fee of Rs.50,000/-
(Rupees Fifty Thousand only) paid to the Agricultural Market Committee
concerned. The amount is refundable only if the licence is not granted for
reasons other than non-compliance of requirement of the conditions under the
Act, retaining 5% of the fee paid towards processing cost.
(3) Every such application shall be accompanied with:
a detailed project report showing the financial status of
with the support of Income Tax returns for the previous three assessment
years OR permanent assets with valuation assessed by a Chartered
the report shall also contain details such as the extent
of land in which
the market is proposed to be established, locations at which procurement
centers, if any, intended to be set up and out lays proposed to be spent
for setting up facilities, for purchase/sale and storage of notified
agricultural produce, livestock or products of livestock, amongst others
establishing the markets for processing, grading, packing, storing and for
sale/export of the produce by way of value addition.
Outlays earmarked for providing facilities, if any, like
to the growers who bring produce to the private market, for establishing
laboratory facilities to evaluate and determine the quality of the produce
after processing to satisfy the sanitary and phytosanitary requirements of
the consumers if any of such produce with an outlay of not less than
Rs.10.00 Crores (Rupees Ten Crores only), for all such facilities to serve
(4) The Director of Marketing shall evaluate the
project report submitted by the
applicant and may in consultation with the persons as he deems fit and
suggests such measures as he may deem it necessary for improving the
efficiency of market for consideration of Government, within 90 days from
the date of receipt of the project report and the Government may issue the
letter of intent for commencement of the project based on such evaluation.
(5) (a) On completion of the implementation of the project, the applicant shall give
an intimation to the Director of Marketing. The Director of Marketing on receipt of intimation shall thereupon inspect and satisfy himself about the completion of the project with all facilities as per the project report and issue a certificate. In case of failure by the applicant to implement the project either within the project implementation period mentioned in the permission or within such extended time, the Government may refuse the grant of licence for reasons to be communicated.
(b) On receipt of the certificate about completion of implementation of the project from Commissioner & Director of Marketing, Government may grant/renew licence in Form 7-B with such conditions specified for a period not exceeding 10 years.
licenced may, start making purchases from the growers
of the area
or areas specified in the licence only after receipt of the licence. However, in
the event of cancellation of licence owing to failure to implement the project,
the person licenced shall forthwith stop making purchases under the licence.
(7) The Director of Marketing or the officers authorized by him not below the rank
of an Assistant Director of Marketing shall have power to inspect the private market.
(8) The licensee shall submit monthly returns of purchases made from the growers
to the Assistant Director concerned and pay the Market Fee to the concerned market committee by 25th of the succeeding month. He shall also furnish the sale returns pertaining to processed goods.
licensee shall make the payment of sale proceeds to the grower by issuing
a sale bill on the day of sale, allow only such allowances and deductions as are
permitted in the rules, collect market charges not exceeding as are applicable
in other markets in the notified area and maintain such registers and furnish
such returns to the Director of Marketing or to such other officer as he may
(10) In case of complaints and disputes between the
farmers and management of
the private market it shall be referred to the Director of Marketing or a
committee of which constituted by him to resolve the disputes and the
decision shall be binding on them".
II After Rule 73, the following rule shall be inserted namely: -"73-A: CONTRACT FARMING.
(1) The contract farming agreement between the contract farming producer and contract farming buyer shall be in Form 11-A.
(2) (a) The agreement is to be entered before the sowing of the crops.
(b) In case of existing horticultural crops th^ time of agreement can be at the stage of flowering or as per tradition.
(3) All the blanks in the
agreement form shall be filled in words and should not be
(4) In the case of
contract farming with producers situated in more than one notified
areas of the Market Committee, Assistant Director of Marketing of the District in
which the main/Head Office of the contract farming buyer is situated is the
authority to register the contract farming.
(5) The Market Committee or the Assistant
Director of Marketing as the case may be
shall maintain the register in the following form prescribed by Director of
Marketing from time to time.
(6) Contract fanning
Buyer is responsible to take possession o f the produce a 11 he
farm or village after correct weighment and payment duly issuing a purchase bill.
He shall obtain the signature of the producer on the purchase bill in token of
having received the payment and one copy of the purchase bill should be
submitted to the Agricultural Market Committee in whose area the land is
situated. Incidental expenditure being incurred due to handling, loading,
unloading, weighment, stitching, including containers is to be borne by the
contract farming buyer.
(7) The contract farming buyer
shall pay Market Fee on the purchases made by him
every month by furnishing purchase returns by 25t of the succeeding month.
(8) The Market
Committee/Assistant Director of Marketing and the
authority have the power to award costs to the defaulting party while resolving the
dispute arising between the parties in respect of the terms and conditions of the
III. After Form 7, the following shall be inserted, namely, -
(Under Rule 53-A)
Application for licence under sub-section (7) of section 7 of the Andhra Pradesh (Agriculture Produce & Live Stock) Markets Act, 1966.
1) Name of the applicant :
2) Name of the
Father / Husband (in case of
The Secretary to the Government,
Government of A.P.,
I / we the undersigned hereby apply for the issue of licence under subsection (7) of section 7 of the Andhra Pradesh (Agriculture Produce & Live Stock)
Markets Act,1966 to establish a private Market at ........................................................ in the
notified area . of Agricultural Market Committee
................................................. District................................ for purchase of......................................
(Commodities) as detailed in the project report enclosed for the area.
I / we abide by all the provisions of the said Act and relevant Rules made there under from time to time.
I / we have remitted a fee of Rs.50,000/- (Rupees Fifty Thousand only) for issue of the licence and receipt of the same is enclosed.
Signature of the Applicant."
IV. After Form 7-A, the following shall be inserted, namely,-
(Form of License for
establishment of private market u/s 7 (7) of the Markets Act, 1966)
License No.: Issued by:
Under sub section (7) of Section 7 of the Andhra Pradesh (Agricultural Produce
& Livestock) Markets Act, 1966, Sri/M/s. ____________________________________
____________________is/are hereby licenced to setup/establish a market/procurement
centers for purchase of notified agricultural commodities/livestock and products of livestock from the fanners and for sale/exports and for processing, grading, packing, storing of the produce by way of value addition in the premises described in the
schedules below and situated in _________________________area notified under
Sections 3&4 of the said Act as places for the purchase/sale/export/processing/grading/packing/storing/pressing/weighment/curing of any notified agricultural produce and livestock and products of livestock for the period
commencing from________________________ and ending with________________ in
accordance with the provisions of the said Act and the Andhra Pradesh (Agricultural Produce & Livestock) Markets Rules, 1969.
Date : Issuing Authority
1. This licence shall not be transferable.
The licensee shall
abide by all the provisions of the Markets Act and Markets
Rules made thereunder and orders issued by the Government from time to time.
licensee shall submit the monthly purchase returns to the Assistant Director of
Marketing concerned and remit the market fee to the market committees
The licensee shall pay the market fee and also facilitate the
collection of market
fee under Section 12 of the said Act due to the market committee as and when it
becomes due as per the provisions of the Markets Act and Markets Rules.
The licensee shall collect the market fee due from the
purchaser and remit to the
market committee and shall deliver the goods to the purchaser after satisfying
himself fully that the purchaser has paid the market fee.
The licensee shall during the business hours on any day
allow access to any
officer of the Marketing Department to inspect all his books of accounts and any
other related records for the purposes of the Markets Act and Markets Rules.
contravention of the aforesaid
conditions will entail
cancellation of licence in addition to the liability for prosecutions as per the
provisions of the Markets Act and Markets Rules.
SCHEDULE UNDER FORM 7-B
Name o f t he Taluk
Name of the Town or village
Ward and Block No.
Revenue or Town Survey No.
Name of street
Description of premises
V. After Form 11, the following shall be inserted, namely,-
(under Rule. 73 - A) CONTRACT FARMING AGREEMENT
Sri.................................................. S/o .
R/o................................. Village................................. Mandal................................
District..................................... Herein after referred to as contract farming seller
or simply seller
herein after referred to as contract fanning buyer or simply buyer.
We, the above said contract farming seller and contract farming buyer
mutually agree for the following terms and conditions for production and purchase and
sale of........................................... (Commodities).
1. The seller owns / taken on lease on extent of................... Acres of land in Survey
No................... of............... Village..................................... Mandal....................
2. The seller agreed to produce........................................ (Commodity) required by
the buyer during.......................... season of.............................. (year / years).
3. The buyer agreed to provide the services with service
hereunder / for production of the said commodity / commodities by the seller.
The seller agreed to recover the service charges from the sale proceeds
payable to him.
Details of Service Service charge.
4. The Buyer agreed to purchase the commodity conforming to specifications at the rates explicitly given here under.
Commodity Specification Rate per Kg./Qtl.
(1) (2) (3)
The Buyer cannot
demand damages if the produce harvested does not conform
to the specifications and quantity agreed upon.
6. The Buyer has agreed to purchase the entire quantity/............................... Quintals
produced by the seller at the rate/s as at para 4 above.
The seller has agreed to deliver the agreed quantities of
commodities first to
the buyer and if and only if there is any left over quantity, he is at liberty to
dispose of the commodities to others.
The Buyer has agreed to take delivery of the commodity at
after weighment and payment by incurring all expenditure incidental there for,
like handling, weighment, cost of containers etc.
Buyer has agreed not to refuse to take delivery of the quantity of produce
conforming to specifications given at paras 6 and 4 above.
The Buyer has agreed to give a third party guarantee in
the form of bank
guarantee for the entire value of the contract agreement.
In case the seller sells the produce to any other person
in violation of the terms
of the agreement, the buyer may approach the Market Committee / Assistant
Director of Marketing for redressal. Market Committee / Assistant Director of
Marketing shall proceed against the seller including attachment of stocks and
properties belonging to the seller.
The Buyer can claim the loss suffered by him for breach
of agreement by the
In case the Buyer fails to take delivery of the produce,
the seller can ask
Market Committee / Assistant Director of Marketing to recover the loss
sustained by him from the bank guarantee furnished by the buyer.
Any dispute arising out of this agreement shall be
resolved as per sub
sections (3) and (4) of section 11-A of the Andhra Pradesh (Agriculture
Produce & Live Stock) Markets Act, 1966.
15. The agreement ceases to be in force on..................................... (Date).
Signature of the contract Signature of the contract
farming Buyer. farming producer.
1 .Name and address
2.Name and address "
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
PRINCIPAL SECRETARY TO GOVERNMENT
The Commissioner of Printing, Stationery & Stores Purchase (Printing Wing), A.P., Hyderabad - (He is requested to publish the Notification immediately in the next issue of the extra-ordinary A.P. Gazette and supply 1000 copies to Agri. & Coop. Dept., and 100 copies to C&DoM., A.P., Hyderabad).
The Commissioner & Director of Marketing,
The Law (B) Department.
The P.S. to Addl. Secy, to CM.
P.S. to Prl.Secretary(Coop.).
//Forwarded by order//
O/O Commissioner & Director of
Marketing. Govt. of
Endt.no. L (1)764/2005 Dt: -10-2005
Communicated for necessary action.
Commissioner & Director of Marketing
All Agricultural Market Committees in the State through concerned Districts Asst. Directors of Marketing, for information and necessary action.
Copy to all Deputy Director of Marketing/
Joint Director of Marketing in the State for necessary action.
Copy to the President FAPCCI, Hyderabad. Copy to the C.I.I. Hyderabad.