THE KARNATAKA AGRICULTURAL PRODUCE MARKETING (REGULATION AND DEVELOPMENT) (AMENDMENT) ACT, 2023
KARNATAKA ACT NO. 20 OF 2024
Arrangement of Section
Sections:
1. Short title and commencement
2. Amendment of section 8
3. Substitution of section 117
STATEMENT OF OBJECTS AND REASONS
Amendment Act 20 of 2024:- By an ordinance, amendment to the section 8(2), section 8(3) and section 117 of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 has been made, which is published on 16/05/2020. Subsequently, the said ordinance has been replaced by Karnataka Act No. 59 of 2020 and published in the Official Gazette on 31/12/2020.
The important features are :-
1. Consequent to the said amendment, the restriction for carrying buying and selling of notified agricultural produce in the market yards has been removed and the role of the APMCs has been restricted to the market yards only. The restriction under section 8(2) of the Act which prohibited the trade outside the market yards and for its violation, levy and conviction prescribed under section 117 has been omitted. Under section 8(3) of the Act, certain exemptions were given for the restrictions imposed under section 8(2) of the Act which is also omitted.
2. Government of India framed 03 Farm Laws through an Ordinance No:10 of 2020 and gave effect from 05/06/2020. Subsequently, the said ordinance was replaced by Act no.21/2020 and gave effect from 27/09/2020. In view of the farmers opposing the said farm laws,
Government of India decided to withdraw the said Act and repealed the same by Act No.40/2021 with effect from 01/12/2021. The same has been published in the official Gazette of the Government of India.
3. Consequent to the amendment made by the State Government by Act No.59 of 2020, the following adverse effect is noticed, namely:-
(a) the farmers who trade in the market area other than the market yards will be prone to exploitation by the traders since there is no regulatory mechanism for controlling the same;
(b) in view of the trade in notified agricultural produce taking place outside the market yards, the revenue for the Government under different heads through taxes/cess will be affected as there is no substantiate documents available for cross verification;
(c) the whole sale trade in notified agricultural produce is being carried in the market yards through the on-line mode (Unified Market Platform). The farmers are benefited by way of competitive and fair price for their produce sold under the Unified Market Platform. As there is no on-line system for the trade taking place outside the market yards, the farmers will not get fair and competitive prices for their grown produce; 4
(d) farmers are not assured of a system wherein they will get fair value of the produce sold outside the market yards;
(e) in the market yards, there is system provided under the Act for settlement of disputes arising between the farmer and the market functionaries regarding weight, payment of the produce sold etc., But, the same dispute mechanism is not available for the transactions taking place outside the market yards by the farmers;
(f) as the farmers are not aware of the prices prevailing in different markets in the State for the agricultural produce and the arrivals, the farmers will not be able to make a good decision on the price to be charged for their produce and hence they are denied in getting a competitive price;
(g) the market yards in the State are developed by the grants from Government of India, State Government and the funds of the market committees. The infrastructural facilities so far created will
not be put to use fully and hence the said facilities will be wasted in due course;
(h) approximately, one lakh people are functioning in the market yards by obtaining license from the market committees and discharging the activities related to trading namely; hamals, weighmen, cartmen, assistants working in trader, commission agents and stockiest shops. They will not get the employment throughout the year and their livelihood is in peril;
(i) the APMCs are contributing to the Revolving Fund setup by the Government for implementation of Minimum Support Price Scheme. When the prices of the agricultural produce comes below the minimum support prices declared by the Government of India, the Revolving Fund will be operated. Prior to the Act amendment, the APMCs were contributing approximately Rs. 125 crores to the Revolving Fund annually and in view of the amendment, the restriction of APMCs role is restricted to the market yards, it affected the income of the APMCs and hence the contribution to the Revolving Fund has come down to 50% i.e, Rs. 60 crores;
(j) the details of the marketing operations carried out in the market yards will provide information on the prices prevailing in the market yards and the arrivals of commodities which is helpful in framing the policy and programmes by the Government. Since the details of the trading activity taking place outside the market 5 yards are not available, the policy and programmes to be framed by the Government will be affected substantially for lack of credible data;
(k) the expectations of the State Government by bringing in the earlier amendment which allowed the trading outside the market yards, it is noticed that the farmers produce price and income has not increased; and
(l) the market fee levied and collected by the APMCs in the State is utilized for providing infrastructural facilities in the market yards and maintenance of the APMCs. In view of the trade taking place outside the market yards, the APMCs have no control and cannot levy and collect market fee has affected their income considerably. Nearly, 50% of the income has come down which has affected the maintenance of market yards and other its obligations;
4. At present, the State Government is of the view, that the intention of amending the section 8(2), section 8(3) and section 117 of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 by Amendment Act No.59/2020, it is proposed for restoration of the earlier provision existed under the Act which will enable the APMCs to have control over the trading of notified agricultural produce in the market yards and also the market area which is of importance in protecting the interest of the growers of agricultural produce. Hence, amendment to section 8(2), section 8(3) and section 117 of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 is proposed.
5. Further, section 72(4) of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 was amended by Act No.05/2014 and given effect from 04/01/2014. The Director of Agricultural Marketing or the officers authorized by him are empowered for grant of trader license under the said amendment. under section 8 of the Act, provides for the control of marketing of notified agricultural produce and under sub-sec(b) of section 8(1) of the Act, it is specified that notified agricultural produce shall be traded under the terms and conditions of the license granted. In view of this, it is legally required that the Director of Agricultural Marketing or the officers authorized by him shall be given powers under section 8 (1)(b) of the Act for giving effectively the amendments made under section 72 (4) of the Act earlier.
Hence, the Bill.
[L.A. Bill No.04 of 2023, File No. SAMVYASHAE 11 SHASANA 2023]
[Entries 14 and 28 of List II of the Seventh Schedule to the Constitution of India.]
[Published in Karnataka Gazette Extra-ordinary No.170 in part-IVA dated:07.03.2024]
KARNATAKA ACT NO. 20 OF 2024
(First Published in the Karnataka Gazette Extra-ordinary on the 7th day of March, 2024)
THE KARNATAKA AGRICULTURAL PRODUCE MARKETING (REGULATION AND DEVELOPMENT) (AMENDMENT) ACT, 2023
(Received the assent of the Governor on the 6th day of March, 2024)
An Act further to amend the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966.
Whereas it is expedient further to amend the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 (Karnataka Act 27 of 1966) for the purposes hereinafter appearing;
Be it enacted by the Karnataka State Legislature in the seventy fourth year of the Republic of India as follows:-
1. Short title and commencement.- (1) This Act may be called the Karnataka Agricultural Produce Marketing (Regulation and Development) (Amendment) Act, 2023.
(2) It shall come into force at once.
2. Amendment of section 8.- In the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 (Karnataka Act 27 of 1966) (herein after referred to as the Principal Act) in section 8 ,-
(i) in sub-section (1), in clause (b) after the words “the market committee”, the words “or the Director of Agricultural Marketing or the officer authorized by him”, shall be inserted;
(ii) for sub-section (2), the following shall be substituted, namely:-
“(2) No place except the market yard, market sub-yard, sub-market yard, private market yard or farmer-consumer market yard, as the
case may be, shall be used for purchase or sale of notified agricultural produce.”
(iii) after sub-section (2), as so substituted the following shall be inserted, namely:-
“ (3) Nothing in sub-section(2) shall apply to,-
(a) the purchase or sale of notified agricultural produce by,-
(i) a Taluk Agricultural produce Co-operative Marketing Society;
(ii) a Primary Agricultural Co-operative Credit Society; and
(iii) any other Co-operative Society permitted by the State Government.
(b) the sale of notified agricultural produce by a retail trader.
(c) a sale by a contract farming producer to a contract farming sponsor under contract faming agreement.
(d) a direct purchase of notified agricultural produce by a licensee from the agriculturist under section 72-A of the Act.”
3. Substitution of section 117.-For section 117 of the Principal Act, the following shall be substituted, namely:-
“117. Penalty for contravention of section 8.- Whoever in contravention of the provisions of clause (b) of sub-section (1) of section 8 uses any place in the market area for marketing any agricultural produce or operates as a trader, commission agent, broker, processor, warehouseman or in any other capacity, without a valid licence or whoever in contravention of the provisions of sub-section (2) of section 8 uses any place for purchase or sale of notified agricultural produce shall, on conviction, be punished with imprisonment for a term which may extend to three months and with fine
which may extend to rupees ten thousand but shall not be less than rupees five thousand and in case of second time contravention a fine of rupees twenty thousand and in case of third time contravention a fine of rupees thirty thousand.”
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