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PRELIMINARY
Short title, extent
and
commencement.
1. (1) This Act may be called “The—- State/UT
Agricultural Produce and Livestock Marketing
(Promotion & Facilitation ) Act, 2017.
(2) It extends to the whole of State/ Union Territory
(UT).
(3) It shall come into force on such date as the State
Government/ Union Territory Administration may, by
notification, appoint.
Definition. 2. In this Act, unless there is anything repugnant in
the subject or context –
(1) “Administration” means an administration of a UT;
(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,
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
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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/ UTs).
(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 State/Union Territory
Agricultural Marketing Board, established by
respective State Government/ Union Territory
Administration;
(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;
(8) “Bye-laws” means subject to any Rules made by
State Government/ UT Administration 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
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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 other 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 pays 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/ UT Agricultural Marketing Board,
appointed by the State Government/ UT
Administration, 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;
(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 Section 13
of this Act;
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(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/ UT
Administration or its agencies or a person licenced
under Section 54 for conducting trading in notified
agricultural 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 such 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;
(20) “Government/ Administration Agency” means
State/ UT Agricultural Marketing Department/
Directorate, State/ UT 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;
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(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/ UT Agricultural Marketing Board or any
other Officer, excepting the Director of Agricultural
Marketing, appointed by the State Government/
UT Administration, 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/UT
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;
(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 subyard 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/ Administration,
and managed & operated by the Agricultural
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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;
(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/ UT
Administration 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;
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(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 in accordance with the
provisions 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/ UT Administration;
(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/ UT Administration;
(44) “Seller” means a person who sells or agrees to
sell agricultural produce including livestock for
consideration of price;
(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 a State as specified in 1st Schedule
of the Constitution of India;
(49) “Trader” means, a person who buys notified
agricultural produce including livestock either for
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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) “UT” means Union Territory, as specified in 1st
Schedule of the Constitution of India;
(51) “Year” means the year as may be notified by the
State Government / UT Administration;
(52) “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 Government/ Administration may, by notification
in the official gazette, declare its intention of
regulating the marketing of such agricultural produce
and livestock, in the State/ UT, as may be specified
in the notification. The notification may be brought to
the notice 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 under
this Act except after consultation with the municipal
Board or municipal council , as the case may be.
(2) The notification under sub-section (1) shall state that
any objections or suggestions which may be
received by the Government/ Administration within
such period as shall be specified in the notification,
not being less than thirty days, will be considered by
the Government/ Administration.
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(3) Government/ Administration may hold consultations
with Local bodies, including Panchayati Raj
Institutions (PRIs) and autonomous district councils
in North-Eastern Region, 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 the 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/UT 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/ Administration may,
by another notification, declare the whole State/ UT
as one unified market area specified in the
notification issued under Section 3 for the purpose of
regulation of marketing of all or any of the kinds of
agricultural produce and livestock specified in the
notification issued under Section 3 under this Act.
Explanation: The area so declared shall be a
single unified market area for the whole State/UT for
regulation of marketing of notified agricultural
produce and livestock.
Notification of
delineated market
area.
5. Subject to the provision made in Sections 3 and 4,
the Government/Administration may, by further
notification, delineate geographical area for a Market
Committee as a delineated market area for the
purpose of election of the Members of such Market
Committee and undertaking developmental activities
therein.
Explanation: The Market Committee shall not
regulate marketing of notified agricultural produce
and livestock in its delineated market area. The
Market Committee will enforce regulation on
marketing of notified agricultural produce and
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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/ Administration 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 Section 6, 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.

Principal market
yard, sub-market
yard, market subyard , private
market yard ,
private market subyard, farmerconsumer market
yard, private farmerconsumer market
and electronic
trading platform.
7. (1) In a State/UT, 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 .
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(2) The Government/Administration shall, 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 (2) , 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.
(3) The Government/ Administration 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 (3), 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/ Administration 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
15
livestock and special infrastructure requirements
therefor. It may be-
(i). fruits, vegetables & flowers markets, including
onion market, apple market, orange market and
other such market;
(ii). cotton market;
(iii) medicinal and aromatic plants market;
(iv).livestock market including camel market, fish
market, poultry market and other such 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”.
Establishment and
notification of
“Market Yard of
National Importance
(MNI)”.
9. Government/ Administration may designate and
notify any existing 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
16
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/Administration :
Provided that no user charge shall be collected
from agriculturist-seller.
(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/ UT/ Country.
(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
17
produce by farmer
to consumer in
retail).
specified agricultural produce 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.
(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 further that Government/
Administration in public interest may from time to
time, by notification, put ceiling on the rate of
collection of user charge.
Declaring
warehouse/silos/col
d storage or other
such structure or
place as market
sub-yard.
12. (1) Save as otherwise provided in this Act, the
Government/ Administration may, by notification
declare warehouse/ silos/ cold storage or other
such structure or place with infrastructure and
facilities as prescribed, to function as market subyard.
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 subyard under sub-section (1), shall apply to the Director
18
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.
(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/ Administration :
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 the 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 subsection (1), direct wholesale purchase can also be
carried out outside the principal market yard, submarket 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.
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(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.
(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 7th day of the next month. The Fund will be
utilized for the purposes 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.