AGRICULTURAL PRODUCE (GRADING AND MARKING) ACT, 1937

1 of 1937

24th February, 1937

STATEMENT OF OBJECTS AND REASONS Act No. 25 of I960.- The Agricultural Produce (Grading and Marking) Act, 1937 does not at present extend to the State of Jammu and Kashmir. The provisions of the Act deal mainly with the prescription and protection of merchandise marks and as such fall within entry 49 of List I of the Seventh Schedule to the Constitution. The State Government of Jammu and Kashmir have agreed to the extension of the Act to that State. The proposed Bill seeks to extend the Act to the State of Jammu and Kashmir.-Gaz. of Ind., 19-4- 1960, Pt. II, S. 2, Ext., p. 332. Act No. 76 of 1986.- The Agricultural Produce (Grading and Marking) Act, 1937 provides for the grading and marking of agricultural and other allied commodities with the objectives of making avail- able quality agricultural produce including horticulture and livestock produce to the consumers. Under this Act, the Central Government has been authorised to make rules fixing grade designation to indicate the quality of any scheduled article, denning the quality indicated by every grade designation; specifying grade designation mark to represent particular grade designation; authorising interested parties to grade; specifying conditions regarding manner of marking, packaging etc. and providing for the confiscation and disposal of produce marked otherwise than in accordance with the prescribed conditions with a grade designation mark. The insignia used for grading is 'AGMARK'. Grading under this Act is purely voluntary in nature. Despite the elaborate procedures prescribed in the rules under the Act, complaints have been received about the quality of Agmarked goods. 2. With a view to protect the interests of the consumers and to ensure that there is no misgrading of articles, the following major amendments are proposed: (a) misgraded article is proposed to be defined as one not of the quality prescribed for the grade designation with which it is marked; (b) the punishment prescribed under sections 4and5of the Act for unauthorised or improper marking with grade designation mark and counterfeiting grade designation mark is proposed to be increased from Rs. 500 as fine to a penalty of imprisonment up to six months and fine up to Rs. 5,000 and from the existing penalty of imprisonment up to Rs. 5,000 and from the existing penalty of imprisonment up to two years or fine or both to imprisonment up to three years and fine up to Rs. 5,000 respectively; (c) it is also proposed to impose a fine not exceeding Rs. 5,000 and imprisonment for a term not exceeding six months for selling or distributing misgraded articles or articles not conforming to the prescribed grade or standard; (d) it is proposed to empower the Central Government to introduce compulsory grading with respect to commodities where such grading is deemed to be in the public interest and for the protection of consumers. The compulsory grading is proposed to be introduced in respect of any article or class of articles notified for any specific area or areas. The penalty proposed to be imposed for contravention of this provision is imprisonment up to six months and fine up to Rs. 5,000; (e) no Court shall take cognizance of the offence punishable under this Act except upon a complaint in writing made by Central Government, State Government, any officer authorised to do so, and also by recognised consumer associations and the aggrieved person; (f) it is also proposed that powers of inspection, search and seizures may also be vested in officers belonging to Central Government, or State Government or other authorities authorised by the Central Government. 3. The Bill seeks to achieve the above objects and to make some other consequential and clarificatory amendments in the Act.- Gaz. of Ind., 8-12-1986, Pt. II, S. 2, Ext" p. 28 (No. 58).

An Act to provide for the grading and marking of agricultural 2[and other] produce. WHEREAS it is expedient to provide for the grading and marking of agricultural2[and other] produce; It is hereby enacted as follows:

SECTION 01: SHORT TITLE AND EXTENT

- (1) This Act may be called The Agricultural Produce (Grading and Marking) Act, 1937.

3[(2) It extends5to the whole of India 4[ * * * * * *].]

SECTION 02: EXPLANATIONS

- In this Act, unless the contrary appears from the subject or context:

(a) "agricultural produce" includes all produce of agriculture or horticulture and all articles of food or drink wholly or partly manufactured from any such produce, and fleeces and the skins of animals;

(b) "counterfeit" has the meaning assigned to that word by Section 28 of the Indian Penal Code-;

(c) "covering" includes any vessel, box, crate, wrapper, tray or other container;

(d) "grade designation" means a designation prescribed as indicative of the quality of any scheduled article;

(e) "grade designation mark" means a mark prescribed as representing a particular grade

designation;

(f) "quality", in relation to any article includes the state and condition of the article;

(g) "prescribed" means prescribed by rules made under this Act;

(h) "scheduled article" means an article included in the Schedule;6[* * *]

(i) an article is said to be marked with a grade designation mark, if the article itself is marked with a grade designation mark or any covering containing or label attached to such article is so marked;

6[(j) an article is said to be misgraded if,-

(i) the article is not of the quality prescribed for the grade designation with which it is marked;

(ii) the composition of the article offered for grading is altered in any way after a sample has been drawn for analysis and determination of the grade designation of the article in accordance with the rules made under this Act;

(iii) the article is tampered with in any manner; and

(iv) any false claim is made for the quality prescribed for its grade designation, upon the label or through advertisement or in any other manner.]

SECTION 03: PRESCRIPTION OF GRADE DESIGNATION

- 7[(1)] The Central Government may, after previous publication by notification in the Official Gazette,8[make rules12to carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-]

(a) fixing grade designations to indicate the quality of any scheduled article;

(b) defining the quality indicated by every grade designation;

(c) specifying grade designation marks to represent particular grade designa- tions;

(d) authorising a person or a body of persons, subject to any prescribed conditions, to mark with a grade designation mark any article in respect of which such mark has been prescribed or any covering containing or label attached to any such article;

(e) specifying the conditions referred to in clause (d) including in respect of any article conditions as to the manner of marking, the manner in which the article shall be packed, the type of covering to be used, and the quantity by weight, number or otherwise to be included in each covering;

(f) providing for the payment of any expenses incurred in connection with the manufacture or use of any implement necessary for the reproduction of a grade designation mark or with the manufacture or use of any covering or label marked with a grade designation mark9[or with measures for the control of the quality of articles marked with grade designation marks including testing of samples and inspection of such articles or with any publicity work carried out to promote the sale of any class of such articles;] 10[* * *]

(g) providing for the confiscation and disposal of produce marked otherwise than in accordance with the prescribed conditions with a grade designation mark;

10[(h) any other matter which is required to be, or may be, prescribed.]

7[11(3)] Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]

SECTION 03A: POWERS OF ENTRY, INSPECTION AND SEARCH

- (1) Any officer of the Central Government or a State Government or any authority, being an officer of a gazetted rank or of equivalent rank, authorised by the Central government may, if he has reason to believe that any provision of this Act or the rules made thereunder has been, or is being, contravened, enter any premises at any reasonable time and make necessary inspection of, and search for, the agricultural produce in relation to which such contravention has been, or is being, made.

(2) Every authorisation made under sub-section (1) shall be deemed to be a warrant referred to in Section 93 of the Code of Criminal Procedure, 1973-.

SECTION 03B: POWERS OF THE AUTHORISED OFFICER TO SEIZE AGRICULTURAL PRODUCE

- (1) An officer authorised under sub-section (1) of Section 3A-may seize and detain any agricultural produce in relation to which an offence under this Act or the rules made thereunder is being, or appears to have been, committed, or which is intended or likely to be used in the commission of such offence: Provided that where any agricultural produce seized under this subsection is subject to speedy or natural decay, the officer so authorised may dispose of such produce in such manner as may be prescribed.

(2) The provisions of Section 102 of the Code of Criminal Procedure, 1973-shall apply to every seizure made under this section.]

SECTION 04: PENALTY FOR UNAUTHORISED MARKING WITH GRADE DESIGNATION MARK

- Whoever marks any scheduled article with a grade designation mark, not being authorised to do so by rule made under Section 3-, shall be punishable14[with imprisonment for a term not exceeding six months and fine not exceeding five thousand rupees].

SECTION 05: PENALTY FOR COUNTERFEITING GRADE DESIGNATION MARK

- Whoever counterfeits any grade designation mark or has in his possession any die, plate or other instrument for the purpose of counterfeiting a grade designation mark shall be punishable15[with imprisonment for a term not exceeding three years and fine not exceeding five thousand rupees].

SECTION 05A: PENALTY FOR SELLING MISGRADED ARTICLES

- Whoever sells any scheduled article which is misgraded shall be punishable with imprisonment for a term not exceeding six months and fine not exceeding five thousand rupees.

SECTION 05B: POWER TO PRESCRIBE COMPULSORY GRADE DESIGNATIONS IN RESPECT OF CERTAIN ARTICLES

- (1) Where the Central Government is of opinion that it is necessary in the public interest or for the protection of consumers that any scheduled article or class of articles shall not be sold or distributed except after such article or class of articles is marked with the grade designation mark, it may, by notification in the Official Gazette, make a declaration to that effect.

(2) Any notification issued under sub-section (1) shall specify the area or areas in relation to which the notification shall have effect.

(3) Where a notification under sub-section (1) is issued in respect of any area or areas, no person shall sell or offer to sell or distribute or offer to distribute any scheduled article or class thereof in the area or areas except in accordance with the provisions of this Act or the rules made thereunder.

(4) Whoever contravenes the provisions of this section shall be punishable with imprisonment for a term not exceeding six months and fine not exceeding five thousand rupees.

SECTION 05C: INSTITUTION OF PROSECUTION

- No court shall take cognizance of an offence punishable under this Act except upon a complaint in writing made by-

(a) the Central Government or the State Government or any officer authorised by it in writing; or

(b) the person aggrieved; or

(c) a recognised consumer association, whether the person aggrieved is a member of that

association or not. Explanation.- For the purposes of this section, "recognised consumer association" means a voluntary consumer association registered under the Companies Act, 1956-or any other law for the time being in force.]

SECTION 06: EXTENSION OF APPLICATION OF ACT

- The Central Government, after such consultation as it thinks fit of the interests likely to be affected, may by notification in the Official Gazette declare that the provisions of this Act shall apply to an article18of agricultural produce not included in the Schedule17[or to an article other than an article of agricultural produce] and on the publication of such notification such article shall be deemed to be included in the Schedule.

SCHEDULE 01: THE SCHEDULE

(SeeSection 2-)1. Fruit. 30. Curry powder. 2. Vegetables. 31. Kapok. 3. Eggs. 32. Raw Jute. 4. Dairy produce. 33. Paddy. 5. Tobacco. 34. Millets. 6. Coffee. 35. Mesta. 7. Hides and Skins. 36. Chillies.[8. Fruit products. 37. Turmeric. 9. Atta. 38. Tapioca Chips and Tapioca Flour. 10. Oil seeds. 39. Sisal and Aloe Fibres. 11. Vegetable oils (including hydrogenated oils and vegetable fats). 40. Oilcake. 41. Condiments and spices (Other than pepper, 12. Cotton. ginger, cashewnut, cardamom, chillies and 13. Rice. turmeric, to which the provisions of the Act have already been applied). 14. Lac. 42. Pulses. 15. Wheat. 43. Mushrooms. 16. Sun hemp 44. Poppy seeds. 17. Sugar-cane gur (jaggery). 45. Walnut. 18. Myrobalans. 46. Gaur Gum, Karya gum etc. 19. Bura. 47. Beeswax. 20. Wool and Goat hair. 48. Gram. 21. Bristles. 49. Jowar." 22. Resin and turpentine. 50. Maize. 23. Arecanuts. 24. Essential Oils. 51. Barley. 25. Cashewnut. 52. Ragi. 26. Cardamom. 53. Bajra. 27. Pepper. 54. Meat chicken and dressed chicken meat. 28. Ginger. 55. Sheekakai powder. 29. Honey. 56. Cashew-shell oil (liquid).

3. Substituted and amended successively by A. C. A. 0., 1948, A. L. 0., 1950 and the Part B Slates (Laws) Act, 1951 (3 of 1951), S. 3 and Schedule.

4. Words "except the State of Jammu and Kashmir" were omitted by Act 25 of 1960, S. 2 (27-8-1960).

5. Extended to the Union Territories of Dadra and Nagar Haveli, Pondicherry and Goa, Daman and Diu - See Dadra and Nagar Haveli (Laws) Regulation, 1963 (6 of 1963), S. 2 and Sch. I (1-7-1965); Pondicherry (Laws) Regulation, 1963 (7 of 1963), Ss. 2,3 (1-10-63) and G.S.R. 679, Gaz. of Ind., 8- 5-65, Pt. II, S. 3(i), p. 742 reproduced in Goa Gaz., 13-5-65, Sr. I, p. 63, respectively. Goa is now a State - See Goa, Daman and Diu Reorganisation Act (18 of 1987), S. 3 (30-5-1987).

6. word "and" occurring at the end of clause (h) omitted and cl. (j) inserted by the Agricultural Produce (Grading and Marking) Amendment Act (76 of 1986), S. 2 (15-4-1987).

7. Section 3 renumbered as sub-section (1) and after sub-section (1) as so renumbered, sub- section (2) [now sub-section (3) -] inserted by the Delegated Legislation Provisions (Amendment) Act (20 of 1983), S. 2, Sch. (15-3-1984).

9. Inserted by the Agricultural Produce (Grading and Marking) (Amendment) Act (20 of 1943), S. 2 (13-8-1943).

10. Word "and" occurring at the end of cl. (f) omitted, and cl. (h) inserted by the Agricultural Produce (Grading and Marking) Amendment Act (76 of 1986), S. 3 (15^-1987).

11. Sub-section (2) as inserted by Act 20 of 1983, renumbered as sub-section (3), the end of cl. (f) omitted, and cl. (h) inserted by the Agricultural Produce (Grading and Marking) Amendment Act (76 of 1986), S. 3 (15^-1987), S. 3(15-4-1987).

12. For General Grading and Marking Rules, 1988 (w.e.f. 17-6-88) - GSR 434/89 - See - Gaz. of India, 17-6-1989, Pt. II, S. 3(i), p. 1482 (No. 24).

15. Substituted for the words "with imprisonment which may extend to two years, or with fine, or with both" by the Agricultural Produce (Grading and Marking) Amendment Act (76 of 1986), S. 6 (15-4-1987).

17. Inserted by the Agricultural Produce (Grading and Marking) Amendment Act ( 13 of 1942), S. 3 (w.r.e.f. 24-2-1937).

18. Applied to Mushrooms and poppy seed by S. 0.2678,0.1.21-9-63, Pt. II, S. 3(ii), p. 3415 and S. 0.2893, G. I., 12-10-1963, Pt. II, S. 3(ii), p. 3697; to Soyabeans and Hay and buffalo hair by S. 0. Nos. 4661,4878,4879- See Gaz. of lnd" 1969, Pt. II, S. 3 (ii) , pp. 5103 & 5311 to cattlefeed sand poultry feeds by S. 0.4065 - See Gaz. ofind., 1972, Pt. II, S. 3(ii), p. 5565; cocoa beans and their powder - Gaz. of Ind., 2-1-1982, Pt. II, S. 3(i), p. 43.s

VERMICELLI, MACARONI AND SPAGHETTI (GRADING AND MARKING) RULES, 2003

Whereas a draft of the Vermicelli Macaroni and Spaghetti (Grading and Marking) Rules, 2002 was published as required by Sec. 3 of the Agricultural Produce (Grading and Marking) Act, 1937 at pages 3 to 11 of the Gazette of India, Part II, Sec. 3, sub-sec. (i) dt. 4.1.2003 vide G.S.R. 6 dt. 18.12.2002 inviting objections and suggestions from all persons likely to be affected; And whereas, copies of the said Gazette were made available to the public on 11.1.2003; And whereas the objections and suggestions received from the public in respect of the said draft rules have been duly considered by the Central Government; Now, therefore, in exercise of the powers conferred by Sec. 3 of the Agricultural Produce (Grading and Marking) Act, 1937 (1 of 1937), the Central Government hereby makes the following rules, namely :—

RULE 01: SHORT TITLE AND COMMENCEMENT

— (1) These rules may be called the Vermicelli, Macaroni and Spaghetti (Grading and Marking) Rules, 2003.

(2) They shall come into force on the date of their publication in the Official Gazette.

RULE 02: DEFINITIONS

—In these rules, unless the context otherwise requires.—

(a) "Agricultural Marketing Adviser" means the Agricultural Marketing Adviser to the Government of India;

(b) "Authorised Packer" means a person or a body of persons who has been granted a certificate of authorisation to grade and mark Vermicelli, Macaroni and Spaghetti in accordance with the provisions of these rules;

(c) "Certificate of Authorisation" means a certificate issued under the General Grading and Marking Rules, 1988;

(d) "Vermicelli, Macaroni and Spaghetti" means the products obtained from Suji or Maida with or without the addition of ingredients like edible groundnut flour, edible tapioca flour, soya flour, milk powder (both whole and skimmed), spices, vitamins, minerals, edible casein, edible oilseeds flour, gluten, vegetable or vegetable products, fruit or fruit products (preserved, dehydrated or pulp) in any shape and form. The product shall be derived from raw materials and ingredients quality of which meets the mandatory requirements of Prevention of Food Adulteration Act, 1954 (37 of 1954) and Prevention of Food Adulteration Rules, 1955;

(e) "Grading and Marking Rules" means the General Grading and Marking Rules, 1988 (as amended from time to time) made under Sec. 3 of the Agricultural Produce (Grading and Marking) Act, 1937 (1 of 1937);

(f) "Schedule" means a Schedule appended to these rules.

RULE 03: GRADE DESIGNATIONS

—The grade designations to indicate the quality of Vermicelli, Macaroni and Spaghetti shall be as set out in column 1 of Schedule-II.

RULE 04: DEFINITION OF QUALITY

—The quality indicated by such grade designation shall be as set out against each grade designation in columns 2 to 9 of the Schedule II.

RULE 05: GRADE DESIGNATION MARK.

—The grade designation mark shall consist of "AGMARK insignia" consisting of a design incorporating the certificate of authorisation number, the word "AGMARK", name of the commodity and grade designation resembling the design as set out in Schedule-I.

RULE 06: METHOD OF PACKING

—(1) Vermicelli, Macaroni and Spaghetti shall be packed in flexible thermoplastic containers made up of food grade films of multi-layer or mono-layer polythene/polypropylene or metallic or paper laminated materials or moisture proof paper bags as approved by the Agricultural Marketing Adviser or any officer authorised by him in this behalf as per Rule 11 of the Grading and Marking Rules.

(2) The flexible container or thermoplastic shall be securely heat sealed with or without nitrogen flushing.

(3) The packing material shall be of food grade quality, strong enough to withstand the weight of the contents, transit impact and handling, till it reaches the consumers.

(4) The containers shall be clean, sound and new. These shall not be composed wholly or partly of any poisonous or deleterious substances which renders the content injurious to health.

(5) The containers shall safeguard the hygienic, nutritional, technological and organoleptic qualities of the product.

(6) The containers shall also be free from insect infestation, fungus contamination or any obnoxious and undesirable smell.

(7) The product shall be packed in the pack sizes as per instructions of Agricultural Marketing Adviser issued from time to time.

(8) Suitable number of consumer packs containing graded material of the same grade designation from the same lot/batch may be packed in master container such as paper or polythene or polypropylene lined strong cardboard box and be securely closed and sealed. The particulars of number and sizes of the packages packed inside the master container be mentioned thereon alongwith other required informations.

RULE 07: METHOD OF MARKING

— (1) The grade designation mark shall be securely affixed to or clearly and indelibly printed on each package/container in a manner approved by the Agricultural Marketing Adviser or an officer authorised by him in this behalf in accordance with Rule 11 of the Grading and Marking Rules.

(2) In addition to the grade designation mark, the following particulars shall be clearly and indelibly marked on each package/container, namely :—

(a) Name and address of the authorised packer,

(b) Place of packing/address of Manufacturer;

(c) Date of packing;

(d) Best before within. . . . month and .... year;

(e) Lot/batch number;

(f) Net mass (when packed);

(g) Maximum retail price (inclusive of all taxes);

(h) Names of ingredients used in the product in descending order of composition by weight;

(i) Name of the edible oil used, if used;

(j) Cooking instructions;

(k) Any other details required under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 and Prevention of Food Adulteration Rules, 1955 as amended from time to time;

(l) If spices have been added, the word 'spiced' to be given on the label. Date of packing shall be date of completion of analysis of the samples.

(3) Proper care shall be taken to ensure that the ink used for marking shall be of such quality which does not contaminate the commodity or the product.

(4) An authorised packer may, after obtaining prior approval of the Agricultural Marketing Adviser or an officer authorised by him in this behalf, in accordance with Rule 11 of the Grading and Marking Rules, affix his private trade mark or trade brand on the graded packages provided that the same does not indicate quality or grade of the product other than that indicated by the grade designation mark affixed to the graded packages or containers in accordance with these rules,

RULE 08: SPECIAL CONDITIONS FOR GRANT OF CERTIFICATE OF AUTHORISATION

—In addition to the general conditions specified in sub-rule (8) of Rule 3 of the Grading and Marking Rules, the following shall be the additional conditions for grant of certificate of authorisation for Grading and Marking of Vermicelli, Macaroni and Spaghetti, namely :—

(1) The authorised packer shall either set up his own laboratory manned by the qualified chemist approved by the Agricultural Marketing Adviser or an officer authorised by him in this behalf in accordance with Rule 9 of the Grading and Marking Rules, for testing the quality of Vermicelli, Macaroni and Spaghetti or have access to the State Grading Laboratory or private commercial laboratory approved for the purpose.

(2) The authorised packer shall ensure the compliance of the following requirements of hygiene and sanitation in grading and marking of the Vermicelli, Macaroni and Spaghetti, namely :—

(i) General hygienic conditions :—

(a) The premises for processing and packing shall be clean, pucca floor, adequately lighted and well ventilated;

(b) The surrounding area or environment shall be free from objectionable odours, smoke, dust or air borne pathological contaminations;

(c) The building shall be of a permanent structure with well cemented or tiled walls and easily washable floors without any crevices;

(d) The doors and windows shall be fitted with fly and insect proof wire mesh and the doors may preferably be fitted with automatic door closers;

(e) Wherever water is used in processing, it shall be ensured that it is pure, potable and free from any pathological micro organisms;

(f) The" premises shall have proper drainage system for flow of refuse water and the same must be fully covered and be cleaned often. No foul smell shall emanate from the drains. The drain out lets shall lead to distant sewer pipes or system.

(g) The premises shall have an adequate storage facility free from rodent contamination and insect infestation.

(ii) Equipment and utensils :—

(a) All equipments and utensils shall be made of stainless steel or corrosive resistant material suitable for food contact applications; and

(b) They should be free from rust, corrosive substances or any other metallic and toxic contamination

(3) All instructions regarding the method of sampling, analysis, sealing, marking of packages, maintenance of records and submission of returns etc., which may be issued from time to time by the Agricultural Marketing Adviser or any Officer duly authorised by him, shall be strictly observed by the 'authorised packer and approved Chemist.

RULE 09: SUSPENSION OR CANCELLATION OF CERTIFICATE OF AUTHORISATION

—In addition to the conditions specified in Rule 7 of the Grading and Marking Rules, the Certificate of Authorisation shall be suspended or cancelled, if a holder of the same, fails to comply with the following conditions :—

(i) The premises and the equipments should be often disinfected so as to maintain high order of hygienic and sanitary conditions which may be got inspected periodically by the local Health Authorities and a certificate be obtained;

(ii) The grinders and other equipments must be cleaned periodically;

(iii) No toxic or non toxic material other than those permissible shall be stored in the authorised premises;

(iv) In the case of resin-coated utensils, recoating will be done after every three years and the packer shall have to furnish certificate to this effect;

(v) The personnel engaged in processing and packing of the product should be got medically checked up at least once in a year;

(vi) The authorised packer shall provide all necessary facilities and assistance to the approved chemist for carrying out the analysis and grading and marking of Vermicelli, Macaroni and Spaghetti;

(vii) The authorised packer and approved chemist shall maintain proper record of raw materials used in processing the product and their analysis. He shall also submit the periodical returns to the Directorate of Marketing and Inspection in the proforma prescribed in the relevant grading and marking instructions issued by the Agricultural Marketing Adviser as per Rule 3(8) of the Grading and Marking Rules.