The Assam Agricultural Produce Market (Amendment) Act, 2006
##### Registered No. 768/97 r

# THE ASSAM GAZETTE

## EXTRA ORDINARY

### 2TKJ

## PUBLISHED BY AUTHORITY

##### T° 18 1WJ<r, ’lfa<JR, 20 tsrpj^fr, 2007, 30 1928 ( ^ )
 No. 18 Dispur, Saturday, 20th January, 2007, 30 Pausha, 1928 (S.E.)

 GOVERNMENT OF ASSAM

 ORDERS BY THE GOVERNOR

 LEGISLATIVE DEPARTMENT :: LEGISLATIVE BRANCH

 NOTIFICATION

#### »

##### The 19th January, 2007

 No. LGL. 113/2004/16.— The following Act of the Assam Legislative Assembly which
 received the assent of the Governor is hereby published for general information.

1                         - r . '

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78

##### IH^SSAM GAZETTE x.. EXTRAORDINARY, JANUARY 20, 2007________

THE ASSAM ACT NO. Ill OF 2007

(Received the Assent of the Governor on 16th January, 2007)

**THE ASSAM AGRICULTURAL PRODUCE MARKET (AMENDMENT) ACT, 2006**

AN

ACT

further to amend the Assam Agricultural Produce Market Act, 1972.

Preamble

Whereas it is expedient further to amend the Assam Agricultural Assam Act
Produce Market Act, 1972, hereinafter referred to as the principal XXIII of

Act, in the manner hereinafter appearing; 1972

It is hereby enacted in the Fifty-seventh Year of the Republic of
India, as follows

Short title, 1. (1) This Act may be called the Assam Agricultural Produce
extent and Market (Amendment) Act, 2006.
commencement

(2) It shall haVe the like extent as the principal Act.

(3) It shall come into force at once.

Amendment of 2. (1) In the principal Act, in section 2, in sub-section ( I ),-
Section 2

(i) for clause (xi), the following shall be substituted,

namely:-

“(xi) “Director” means an officer, not below the rank of
Additional Secretary to the Government of Assam,
having sufficient experience in the administration of the
State, appointed by the State Government by

notification in the Official Gazette, as Director to
discharge all or any of the functions of the Director
under the Act and includes any officer empowered by
the State Government by notification to exercise and
perform all or any of the functions of the Director under
the Act;”

(ii) In clause (xxvi), for the word “and”, occurring in
between the words “means” and “enclosure”, the word
“an” shall be substituted and for the word ‘respectively’,
the following shall be substituted, namely :-

“under section 6”;

(iii) after clause (XL), the following new clauses shall he
inserted, namely
(XLI) “Contract Farming” means farming by a person
or a group of persons, called Contract Farming Producer
under a written agreement with another person called.
Contract Farming Sponsor to the effect that his farm
produce shall be purchased as specified in the
agreement.
Explanation:- “Contract Farming Producer” means an
individual agriculturist or association of agriculturists,
by whatever name called, registered under any law for
the time being in force;


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THE ASSAM GAZETTE, EXTRAORDINARY, JANUARY 20, 2007 79.

##### z

(XLII) “Contract Farming Agreement” means the
agreement made for contract farming between Contract
Farming Sponsor and Contract Farming Producer;

(XLIII) “Hamal” means a labourer or coolie engaged for
loading, unloading, filling, stitching, emptying or

carrying any agricultural produce in the notified market
area;

(XLIV) “Private Market Yard” means such place other
than the principal market yard _I sub-market yard in the_
market area whe, infrastructure has been developed

and managed by a person or a group of persons or a
body corporate other than the Market Committee, for
marketing of specified agricultural produce holding a
registration for the purposes of this Act;

“(XLV) “Processing” means any one or more of a series
of treatment relating to powdering, crushing,

decorticating, dehusking, 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;

(XLVI) “Processor” means a person or a group of
persons who undertake processing of any specified
agricultural produce on his own accord or on payment
of a charge;

(XLVII) “registration” means registration made under
this Act;

(XLVIII) “transportation” means taking of agricultural
produce by pushcart, bullock-cart, truck, any other type
of vehicle or railway wagon in course of business before
sale or after the sale has taken place in the market area
or outside, for marketing, trading or processing from
one place to another;

(XLIX) “transporter” means a person who transports or
a body of persons who transport agricultural produce;

(L) “Market Functionary” means a trader, a commission
agent, buyer, Hamal, Processor, a stockist, a transporter
and such other person as may be declared, under the
rules or bye-laws, to be market functionary;

(LI) “value addition” means processing, grading,
packaging or other activities due to which value is
added to agricultural produce;

(LII) “Deputy Commissioner” means the Principal
revenue officer of the district;

(LIII) “Secretary” with reference to the Government
means the official head of the concerned department in
the Government and includes a Principal Secretary or a
Commissioner and Secretary.”

Amendment of 3.(1) In the principal Act, in section 3,-
section 3 (i) in sub-section (1), in clause (b), the word “ of Assam”

shall be omitted;


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80 THE ASSAM GAZETTE, EXTRAORDINARY, JANUARY 20, 2007

(ii) in sub-section (12), in clause (a), in the second proviso,-

(a) in the first line, between the words, “prejudice to the ”

and “rule making power”, the word “generality” shall be
inserted;

(b) in the first line, between the words “employees of the”

and “Market Committees”, the word “Board and” shall
be inserted;

(c) after the existing provision, full stop (.) shall be omitted

and thereafter the following proviso shall be inserted,
namely :- “Provided also that the approval as required
under the aforesaid proviso, if not received within a

period of ninety days from the date of seeking thereof,
shall be deemed to have been approved on the expiry of
the said period”.

Insertion of new 4. In the principal Act, after section 31, the following new
section 3J section shall be inserted, namely :-

“Power and 3 J (1) Subject to the provisions of this Act and the rules made
functions of the there under, the Director may perform the functions as
Director specifically provided under this Act. The State

Government may delegate any or all the powers vested
in it under this Act and rules framed there under to the
Director. The Director may delegate any or more of his
functions to any other officer or officers under him.

(2) The functions of the Director shall also include -

(i) supervision of the private market yard, direct

purchase of agricultural produce from the agriculturist,
consumers and farmers market, processing of

agricultural produce from the agriculturist, consumers
and farmers market, processing of agricultural produc e,
activities of the registration holders under the Act and
activities of the contract farming sponsor and producer ;

(ii) without prejudice to the provisions of section 45,
authorising any officer in writing to launch prosecution
for contravening any provisions of the Act and the rules
made there under;

(iii) taking steps for grading and standardisation of
agricultural produce.”

Amendment of 5. In the principal Act, in section 4, in sub-section (1), in
section 4 the first line, between the words, “intention of’ and

“regulating”, the words “developing and” shall be
inserted.

Amendment of 6. (1) In the principal Act, in section 5,
section 5

(i) for sub-section (2), the following shall be substituted,

namely:-
“(2) On and after the date of the publication of the
notification under sub-section (1) or at such later date as
may be specified therein, no person shall, except in
accordance with the provisions of this Act, the rules and
the bye-laws framed there under-


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THE
GAZETTE, EXTRAORDINARY, JANUARY 20, 2007______ 81.

(i) use any place in the market eurea for the marketing of

specified agricultural produce; or

(ii) operate in the market area as a market functionary”;

(ii) in sub-section (3), for the words, figure and brackets,

“sub-section (2)”, the words and figures and brackets
“sub-sections (1) and (2)” shall be substituted.

Insertion of new

In the principal Act, after section 5, following new

sections 5A, 5B, sections shall be inserted, namely,
5C, 5D, 5E, 5F,
5G, 5H, 51

“Sale of specified 5A (1) All specified agricultural produce shall ordinarily be
agricultural

sold in the principal market yard / sub-market yards,

oroduce subject to the provisions of sub-section (2):

Provided that the specified agricultural produce

may also be sold at private market yards and other
places subject to the provisions of sections 5B, 5C and
5D.

Provided further that it shall not be necessary to

bring agricultural produce covered under contract
farming to the principal market yard / sub-market yard /
private market yard and it may be directly sold to
contract farming sponsor from farmers’ field.

(2) Such specified agricultural produce, as may be brought

by the licensed/registered traders from outside the
market area or in the market area in the course of
commercial transaction or by way of transportation,
may be brought or sold anywhere in the market area.

(3)The price of the specified agricultural produce, brought

for sale into the principal market yard or sub-market
yard, shall be settled by tender bid or open auction or in
any other transparent system and no deduction shall be
made from the agreed price on any account whatsoever
from the seller.

Provided that the price of specified agricultural

produce in the private market yards shall be settled in
the manner as may be prescribed.

Establishment of 5B. The Director maj issue registration in the prescribed
Private market manner to purchase agricultural produce by establishing
yards and direct private market yard or direct from agriculturist, in one
purchase of or more market area for -
agricultural

(a) process of the specified agricultural produce;

produce from

(b) trade of specified agricultural produce of

agriculturist

particular specification;

(c) export of specified agricultural produce;

(d) grading, packaging and transaction in other way

by value addition of specified agricultural
produce.


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82 THE ASSAM GAZETTE, EXTRAORDINARY. JANUARY 20, 2007

Establishment of 5C. (1) Consumer/Farmer market may be established by
consumer/farmer developing infrastructure, by any person or group of
market (direct persons or a body corporate other than the Market
sale by the Committee in any market area. At such place, producer
producer) of agricultural produce himself may sell his produce

directly to the consumer :

Provided that the consumer shall not purchase

more than such quantity of a commodity at a time in the
consumers market as may be prescribed.

(2) Registration for establishment of consumer/farmer

market shall be granted by the Director in such manner
as may be prescribed.

Grant/renewal of 5D (1) Any person or a group of persons or a body corporate
registration other than the Market Committee, who desire to

purchase specified agricultural produce direct from the
agriculturists or wish to establish a private market yard
under section 5B or desire to establish consumer/larmcr
market in one or more than one market area under
section 5C shall apply to the Director for grant or
renewal of the registration, as the case may be, in the
manner as may be prescribed.

(2) Along with every such application for registration or

renewal thereof, the prescribed fees shall be deposited.

(3) The Director shall grant the registration or a renewal

thereof in the prescribed manner or may refuse the same
on any one or more of the following grounds, to be
recorded in writing, as the case may be

(i) if the Market Committee’s dues are outstanding

against the applicant, the registration shall not be
granted/renewcd;

(ii) if the applicant is a minor;

(iii) if the applicant has been declared defaulter under

the Act and rules made there under;

(iv) such other reasons as may be prescribed.

(4) While granting registration or a renewal thereof under

this section, the Director shall specify that no amount
shall be realised on any account by the owner of the
market from the seller of agricultural produce.

(5) Any registration granted/renewed under this section

shall be subject to provisions of this Act and the rules
framed there under.

Power to 5E. (1) Subject to the provisions of sub- section (2), the Director
cancel/suspend may, for the reasons to be communicated in writing to
the registration the registration holder, suspend or cancel the registration,

if

(a) the registration has been obtained through wilful
misrepresentation or fraud;

(b) the holder of the registration or any one acting on his
behalf commits a breach of any one or more of the


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(c) the holder of the registration commits any act or

z abstains from carrying on his normal business in the
market area with the intention of obstructing, suspendi ng
or stopping the marketing of specified agricultural

produce in the principal market yard/sub-market yard
and in consequence thereof the marketing of any
specified agricultural produce has been obstructed,
suspended or stopped;

(d) the holder of the registration has become insolvent

(e) the holder of the registration incurs any other
disqualifications as may be prescribed and

(f) the holder of the registration is convicted of atiy
offence under this Act.

(2) No registration shall be suspended or cancelled under

this section without giving a reasonable opportunity to
its holder to show cause against such suspension or
cancellation.

Contract Farming 5F. Contract Farming agreement shall be governed in the

              - manner laid hereinafter provided .-

(1) Contract Farming Sponsor shall register himself with the

Deputy Commissioner of the district where the contract

farming producer resides, in such manner as may be

prescribed.

(2) The Contract Farming Sponsor shall also get the contract

farming agreement recorded with the Deputy

Commissioner of the district, where the contract farming

producer resides, in such manner as may be prescribed in
this behalf. The contract farming agreement shall be in
such form and containing such particulars and terms and
conditions, as may be prescribed.

Notwithstanding anything contained in contract

farming agreement, no title, right, ownership or

I possession shall be transferred or alienated or will vest in

the contract farming sponsor or his successor or his agent
as a consequence arising out of the contract farming
agreement.

(3) Disputes arising out of contract farming agreement may

be settled by the Director. The Director shall resolve the
dispute in a summary manner within thirty days after
giving the parties a reasonable opportunity of being
heard.

Redressal of 5G. Any dispute between the owners of private market yards,
dispute consumer/farmer market and the Market Committee

shall be referred to the Director or his representative or
any other officer authorised by the State Government in
this regard, lite dispute shall be resolved after giving
both the parties a reasonable opportunity of being heard.
Appeal against the decision may be preferred for
disposal under section 5H in such manner as may be
prescribed.


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or producer under section 5F against the decision of the
Director or an aggrieved person under section 5G against
the decision of the director, may prefer an appeal before
the State Government in the prescribed manner whose
decision thereon shall be final and shall not be called in
question in any court of law.
_f_

Market yards and _51._ In every market area, there may be-
Sub-market

(i) a principal mark .. yard and one or more sub-market

yards,

yards managed by the Market Committee;

Farmer/Consumer
Market and (ii) one or more than one private market yards managed
Private Market by a person or a group of persons or a body corporate

other than the Market Committee;

(iii) one or more than one Farmer/consumer markets

managed by a person or a group of persons or a body
corporate other than the Market Committee.”

Amendment of 8. In the principal Act, in section 13, for sub-section (2), the
section 13 following shall be substituted, namely ;-

“(2) Where a Market Committee is established in any
area, no person shall, subject to the provisions of
sections 5A, 5B, 5C, 5D, 5E and 5F, use any place for
buying and selling of specified agricultural produce and
function as a trader, commission agent, broker,

weighman, measurer, surveyor, warehouseman,

transporter, processor or in any other capacity as market

functionary within the market area unless a licence is
issued to such person by the Market Committee on
payment of such fee and subject to such conditions as
may be prescribed.”

Amendment of 9. In the principal Act, in section 14, in the beginning, for
section 14 the word “The”, following words, figures and

punctuation marks shall be substituted, namely :-

“Subject to the pro visions of sections 5A, 5B, 5C, 51),
5E and 5F of the Act, the”.

Amendment of 10. In the principal Act, for section 21, except Explanation 1
section 21 and 2 thereof, the following shall be substituted and the

said section along with Explanation 1 and 2 shall be

deemed to have been inserted with effect from 3[,d]
September, 1974, namely

Power to levy 21(1) Every Market Committee shall levy and collect a cess on
cess the agricultural produce bought or sold in the market

area at a rate not exceeding two rupees for every'one
hundred rupees of the aggregate amount for which a
specified agricultural produce is bought or sold whether
for cash or for deferred payment or other valuable
considerations.


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##### — ----------IHE_ASSAM GAZETTE, EXTRAORDINARY JANUARY 20, 2007 8'5

(2) The Assam State Agricultural Marketing Board shall

also have the power to levy and collect cess for any or all
of the Market Committee(s) in the market areas in
addition to the powers of the Market Committee (but not
both), whenever felt necessary with approval of the State
Government, on the agricultural produce bought or sold
in such market area(s) at a rate not exceeding two
Rupees for every one hundred rupees of aggregate
amount for which a specified agricultural produce is
bought or sold whether for cash or for deferred payment
or other valuable considerations.

(3) No cess will be levied on goods manufactured from the

agricultural produce on which cess is proposed to be
levied and which are ultimately exported out of the '

Country.”

Amendment of 11. In the principal Act, in section 21 A, the existing

section 21A provision shall be renumbered as 21 A(l) and after sub­
section (1) so renumbered, the following sub-section (2)
shall be inserted, namely

“(2) In case of any specific need for prevention of

evasion of cess the Assam State Agricultural Marketing
Board may also establish composite check gate(s) for ill
Market Committees and/or any check gate at any point,
within any market area of any Market Committee
whenever felt necessary with approval of the State
Government.”

Amendment of 12. In the principal Act, in section 23, for the figure and
section23 letter “3E”, the figure and letter “3D” shall be

substituted.

**M. A. HAQUE**

**Secretary to the Govt, of Assam,**

**Legislative Department.**

GUWAHATI - Printed and published by the Dy. Director (P&S) Directorate of Ptg. and Sty., Assam, Guwahati-21

(Ex-Gazette) No. 35-500+600-20-1-2007.


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