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16_111314_2018_adluniyam 24

\3c-c-1 Mar 31-€1111P'i , 11 31, 2018 9

No. 813(2)/LXXIX-V-1-18-1(ka) 9-2018 Dated Lucknow, April 11,2018

IN pursuance of the provisions of clause (3) of Article 348 of the Constitution, the Governor is pleased to order the publication of the following English translation of the Uttar Pradesh Krishi Utpadan Mandi (Sanshodhan) Adhiniyam, 2018 (Uttar Pradesh Adhiniyam Sankhya 24 of 2018) as passed by the Uttar Pradesh Legislature and assented to by the Governor on April 10, 2018.

THE UTTAR PRADESH KRISHI UTPADAN MANDI (SANSHODHAN) ADHINIYAM, 2018

(U.P. ACT No. 24 OF 2018)

[As passed by the Uttar Pradesh Legislature]

AN

ACT

further to amend the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964.

Short title

Amendment of section 2 of U.P. Act no.25 of 1964

IT IS HEREBY enacted in the Sixty ninth Year of the Republic of India as follows

I. This Act may be called the Uttar Pradesh Krishi Utpadan Mandi (Sanshodhan) Adhiniyam, 2018.

2. In section 2 of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964, hereinafter referred to as the principal Act, -

after clause (d-I); the following clause shall be inserted, namely:-

"(d-2) 'Cold Storage' in relation to market yard means cold storage declared as market sub-yard under section 7-A of this Act;"

after clause (h), the following clauses shall be inserted, namely:-

"(h-1) `Director Agricultural Marketing' means an officer, appointed by the State Government as Director Agricultural Marketing, to perform the powers and functions of the Director of Agricultural Marketing under this Act;

(h-la) 'DirectMarketing' in relation to specified agricultural produce, means direct wholesale purchase of specified 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;

(h-lb) 'Farmer Producer Organisation (FPO)' means an association of farmers, by whatever name/form it is called/exists, registered under any law for the time being in force, which is to mobilize farmers and build their capacity to collectively leverage their production and marketing strength."

after clause (k- I), the following clause shall be inserted, namely:-

"(k - 2) 'Market sub-yard' means warehouse/silos/cold storage or other such structure or place declared to be market sub-yard under section 7-A of this Act."

after clause (m), the following clause shall be inserted, namely:-

16_RPH_2018_adhiniyarn 24

10 rt1•1 31WEIZIRTIT 41 old, 11 ati, 2018

"(m-1) `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."

(e) after clause (o-1), the following clauses shall be inserted,

namely:- "(o-2) 'Private Market Yard' means such place other than

Principal Market Yard, Sub-Market Yard and Market-Sub Yard in the market area, where infrastructure has been developed and managed by a person for marketing of agricultural produce, holding a license for this purpose under this Act;

(o-3) 'Processor' in relation to agriculture produce means a person who under takes processing of any notified agricultural produce on his own accord Or on payment of a charge."

(0 after clause (s), the following clauses shall be inserted,

namely:- "(s-1) 'Silo' means silo declared as market sub-yard under

section 7-A of this Act; (s-2) `Special Commodity Market Yard' means a market

yard as notified under section 7-C of this Act."

(g) after clause (t), the following clause shall be inserted,

namely:-

Insertion of new section 2-A

Amendment of section 7

"(aa-1) 'Warehouse' in relation to market yard means warehouse declared as market sub-yard under section 7-A of

this Act."

3. After section 2 of the principal Act, the following section shall be

inserted, namely :-

"2-A. The agriculturist/producer may sell his produce according to

Marketing his choice anywhere in or outside this State: Freedom to Agriculturist/ Producer

Provided that no market fee shall be collected for wholesale

transition from agriculturist— seller:

Provided further that no market fee shall be levied or collected on the retail sale of any specified agricultural produce, where such sale is made by an agriculturist or a producer directly to the

consumer for his domestic consumption."

4. In section 7 of the principal Act in sub-section (2) for clause(b),

the following clause shall be substituted, namely :-

"(b) declare that the whole-sale transactions of all or any of the specified agricultural produce in respect of a market area shall be carried on only at a specified place or places within its principal

market yard or sub-market yards : Provided that the provision of this clause shall have no effect in the

case of a private market yards and collection/ aggregation centers outside a principal market yard, sub-market yards, private market yards or market sub—

yards, situated in such market area."

"(t-1) `State' means a State as specified in lg Schedule of

the Constitution of India."

(h) after clause (aa), the following clause shall be inserted,

namely:-

16_RPH_2018_adhiniyam 24

0-471 31-filtITToT 4IuiC, 11 31t1; 2018 11

Insertion of new sections 7-47-B, 7-C and 7-D

5. After section 7 of the principal Act the following sections shall be inserted, namely :-

"7-A (1) Save as otherwise provided in this Act, the State Declaring Government may, by notification declare such warehouse/silo/ warehouse/ silo/ cold storage/ or other such structure cold storage/or other such or place with infrastructure and facilities as may be structure or prescribed, to function as market sub-yard: places as market sub-yard

Provided that a place of retail trade shall not be declared as market sub- yard.

Explanation:— The expression 'place' mentioned in this sub-section shall include any structure, enclosure, open space, locality, street including warehouse/ silo/ cold storage/ pack house/ cleaning, grading & processing unit etc.

The owner of a warehouse/silo/ cold storage, or other such structure or 'place,' as the case may be, desirous of declaration of such place as market sub-yard under sub-section (1), shall apply to the Director Agricultural Marketing or an officer authorized by him, in such form, in such manner with such fee and for such period but not less than three years, as may be prescribed.

The owner of a warehouse/ silo/ cold storage or other structure or place, shall take license from the concerned market committee of said area and pay the applicable market fee on notified agricultural produce transacted at the declared market sub-yard, at the rate ad valorem and shall contribute such market fee to the market committee:

Provided that no market fee shall be collected from an agriculturist-seller.

7-B (1) Subject to such reasonable conditions and such fee as may Direct marketing be prescribed, the Director, Agricultural Marketing (wholesale direct may grant a license to a person to establish purchase from Collection/ aggregation centers in the proximity of farmers outside the market yard, the production area with infrastructure, as may be sub-market yard, prescribed in accordance with the provisions of this private market Act and the rules made thereunder for marketing of yard) notified agricultural produce:

Provided that the direct wholesale purchase may be carried out outside the principal market yard, sub-market yards, market sub-yards, private market yards by declaring the place of such purchase, without establishment of any permanent collection/ aggregation centre, as may be prescribed.

The direct marketing licensee shall maintain records and all accounts relating to daily trade transactions and submit monthly report, as may be prescribed, to the licensing authority.

The licensing authority may seek any type of additional information from the dirt marketing licensee, and may also inspect and issue directions relating to the functioning of such wholesale purchases' and the activities incidental thereto.

The direct marketing licensee shall pay market fee on transaction of sale of specified agricultural produce to the Uttar Pradesh State Marketing Development Fund maintained by the Board.

7-C (1) The State Government, where it considers necessary or Establishment expedient in the public interest so to do, may, by and notification of 'Special notification declare existing market yard established Commodity under clause (b) of sub-section (2) of section 7 as Special Market Yard' COmmodity Market Yard or may notify any new market yard as Special Commodity Market Yard of all or any of the specified agricultural produce in respect of a market area.

16_RPH_2018_adhiniyam 24

12 Vt41 313TEETTRuf 41 1 /41d, 11 347, 2018

Amendment of section 9

Amendment of section 9-A.

Amendment of section 13

(2) Provisions for and in relation to the Market Committee of this Act shall mutatis mutandis apply to the Market Committee established for Special Commodity Market Yard.

7-D (1) Subject to such reasonable conditions and such fee as may Establishment be prescribed, the Director, Agricultural Marketing may of private grant a license to a person to establish a private market market yard yard, for trading of notified agricultural produce.

The private market yard licensee, or its management committee, may collect user charge on notified agricultural produce transacted in the private market yard, at the rate ad valorem not exceeding as notified by the State Government:

Provided that no user charge shall be collected from agriculturist-seller.

The private market yard licensee shall contribute license fee and one-fourth of the user charge collection, to a separate fund maintained and operated by the Director, Agricultural Marketing. The Director, Agricultural Marketing shall utilise the fund, in skill development, training, research and such other activities, as will aid in creating an efficient marketing system in the State." 6. In section 9 of the principal Act in sub-section (1) after the existing

proviso the following proviso shall be inserted, namely : "Provided further that in case of direct purchase from farmers,

to set up collection/ aggregation centers in the proximity of the production area and for the private market yard, Director, Agricultural Marketing shall be the Licensing Authority for that market area." 7. For section 9-A of the principal Act the following section shall be

substituted, namely :- "9-A. (1) Any Market Committee may grant unified license to

purchase specified agricultural produce from the farmers and traders in such manner as may be prescribed, for one or more of the following purposes:-

processing of specified agricultural produce; trading of specified agricultural produce; grading, packing and transaction in other way by value

addition of specified agricultural produce. ' (2) Market fee and development cess as provided in this Act, shall be

payable on sale and purchase of specified agricultural produce to that market committee, where the specified agricultural produce is actually transacted."

8. For section 13 of the principal Act the following section shall be substituted, namely :-

"13.(1)- The Committee referred to in section 12 shall consist of the following members to be nominated by the State Government in such manner as may be prescribed:

nine representative of producers of the Market Area; two representative of traders carrying on business in the

Market Area and holding license therefor under this Act; two representative of commission agents carrying on business

in the Market Area and holding license therefor under this Act; two representative of palledar and measurer carrying on

business in the Market Area and holding license therefor under this Act; Secretary of the Market Committee who shall be the member

secretary. (2) The members referred to in clause (a) of sub-section (1), who

have sold notified agricultural produce in the market yards and obtained sale vouchers in Form VI of last three years from the committee, cumulatively highest in value, shall be eligible for nomination:

Provided that out of nine producer members, three members shall be from marginal farmers, three members from small farmers and three members from large farmers.

4 6_RPH_2018_adhiniyam 24

'3c'i' TkW 3RIP-IRIcr 4nrid, 11 aft, 2018

13

(3) Every committee shall have a Chairman and Vice-Chairman elected by the members referred to in clauses (a) to (d) of sub-section (1) in such manner as may be prescribed :

Provided that the Chairman and Vice-Chairman shall be the member referred in clause (a) of sub-section (1).

(a) The term of the committee constituted under sub-section (1) shall be three years from the date of publication of the constitution of the committee, if not terminated earlier by the State Government.

(b) The term of the office of the Chairman, the Vice-Chairman and the members shall be Co-terminus with the committee.

The name of the every member nominated under sub-section (1) shall be registered with the Director within 21 days of the nomination thereof

No proceeding, or act done by or on behalf of the committee shall be questioned on the ground for want to any qualification, or defect in the nomination, of any person a Chairman, Vice-Chairman or member of the committee, or on the ground of any vacancy, or any other defect in the Constitution of the Committee."

In section 17 of the principal Act, in clause (iii) in sub-clause (b), for the words "not more than two and half percentum" the words "not more than two percentum" shall be substituted

In section 19 of the principal Act, for sub-section (5) the following sub-section shall be substituted, namely :-

"(5)Every committee shall, out of its total receipts excluding moneys raised under clause (v) of section 17, money realised as development cess and grants made by the State or Central Government in the financial year, keep only fifty per cent or rupees ten crore, whichever is less and transfer the remaining amount to the Board as contribution."

After section 33-B of the principal Act the following sections shall be inserted, namely :-

"33-C. (1) Any person who, desires to establish private market Grant/Renewal of yard under section 7-D shall apply to the Director, license for private Agricultural Marketing or the Officer authorized by him market yard

for grant or renewal of license, as the case may be, in such form and in such manner; and also for such period but not less

than three years, as may be prescribed.

An application for grant or renewal of license, as the case may be, for private market yard, shall be accompanied with such reasonable license fee and security/ bank guarantee, as may be prescribed.

An Application received under sub-section (1) for grant or renewal of license may be accepted or rejected for the reasons recorded in writing by the Licensing Authority:

Provided that the application received under this section shall be liable to be rejected on the condition(s),-

that, the applicant is a minor not under custodian or not bona fide;

that, the applicant has been declared defaulter under the Act and Rules and Bye-laws made there under;

that, any dues relating to Market Committee and/or Board and/or department/directorate of agricultural marketing are outstanding against the applicant;

Amendment of section 17

Amendment of section 19

Insertion of new sections 33-C, 33-D, 33-E and 33-F

I 6_RPH_20113_adh iniyam 24

14 Os-rK 14 4f diffIttRuf lu1 , 11 81fra., 2018

that, the concerned authority is satisfied that the applicant does not possess the infrastructure credentials, experience or adequate capital for investment or any other requirements as may be prescribed for establishment of a private market yard; and/ or

for any other reasons, as may be prescribed.

(4) The license granted or renewed under this section shall be subject to such terms and conditions, as may be prescribed; and the licensee shall be bound to follow the terms and conditions of the license as prescribed. The licensee shall also follow the provisions of this Act and Rules made

thereunder".

33-D.(1) Suspension or Cancellation of license granted /renewed under section 33-C

Subject to the provisions of section 33-C, the Licensing Authority, as the case may be, may suspend or for the reasons to be communicated to the license holder in writing and giving reasonable opportunity of hearing,

cancel the license, if;

the license has been obtained through willful misrepresentation or

fraud; and/or

the holder of license or its representative or anyone acting on his behalf with his expressed or implied permission, commits a breach of any of the Rules, regulations and terms or conditions of license; and/or

the holder of license himself or in combination with other license holder commits any act or abstains from carrying on his normal business in the market area with the intention of willfully obstructing, suspending or stopping the marketing of notified agricultural produce; and/ or

the holder of the license has become insolvent; and/or

the holder of the license incurs any disqualification, as may be

prescribed; and/or

the holder of the license is convicted of any offence under this

Act. No license shall be cancelled under this section without giving a

reasonable opportunity of being heard to its holder.

Subject to the provisions of section 33-D, the Licensing Authority shall communicate to the license holder by speaking order to cancel its

license granted or renewal under section 33-C :

Provided that any person aggrieved by an order of the licensing authority may prefer an appeal to the State Government in such manner as

may be prescribed.

33-E. (1) Any person, including a Farmers Cooperative, Farmers Grant/ Renewal Producer Organisation (FPO) and Processor/ Exporter, of license for direct marketing under section 7-B, desires to purchase agricultural produce

directly from farmers outside the principal market yard, sub- market yard, market sub-yard, private market yard, shall apply to the Director, Agricultural Marketing for grant or renewal of license, as the case may be, in such form and in such manner; and also for such period , as

may be prescribed.

16_RP1-1_2018_adbiniyam 24

1 /43CCP1 VbJ arRiltiRtri irotC, 11 31IU, 2018 15 An application for direct marketing shall accompany such

reasonable license fee and security/ bank guarantee, as may be prescribed.

The application received under Section 33-E for grant or renewal of license may be accepted or rejected in the cause and manner mutatis mutandis to Section 33-C (3).

A direct marketing license granted or renewed under this Section shall be subject to such terms and conditions, as may be prescribed; and the licensee shall be bound to follow the terms and conditions of the license as prescribed. The licensee shall also follow the provisions of this Act and Rules made thereunder.

33-F. Subject to the provisions of section 7-B, the Licensing Suspension or Authority, who has issued the license, may suspend or Cancellation of direct cancel the license granted/ renewed under section 33-E marketing in the cause and manner mutatis mutandis to section license

33-D :

Provided that any person aggrieved by an order of the licensing authority may prefer an appeal to the State Government in such manner as may be prescribed."

12. In section 37-A of the principal Act, for sub-section (1) the following sub-section shall be substituted, namely :-

"(1) A market committee or its sub-committee or •with the authorization by a resolution of a committee, its Chairman, may accept from any person who has committed or is reasonably suspected of having committed an offence punishable under this Act in addition to the fee or other amount recoverable from him, a sum of money equal to ten times the sum of market fee and development cess assessed due on the equivalent agricultural produce in accordance with the explanation given in the proviso to sub-rule (1) of Rule 66 of the Uttar Pradesh Krishi Utpadan Mandi Niyamavali, 1965 or Rupees Two Lakh, whichever is less and for other offence, a sum of money not exceeding rupees twenty thousand by way of composition fee and compound the offence."

Amendment of

section 37-A

STATEMENT OF OBJECTS AND REASONS

The Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 (U.P. Act no. 25 of 1964) has been enacted to provide for the regulation of sale and purchase of agricultural produce and for the establishment, superintendence and control of markets therefor in Uttar Pradesh. For the development of agricultural marketing and to develop completely their capacities and potentialities, it is highly required that the marketing which is of link among the consumers and producers, should be multidimensional formed for the enhancement of the income of the farmers, so that the farmers could be able to sale their produce according to their own selection and conditions at their times and places. For this purpose it is necessary to make provisions for the establislunent of private market yards, development of warehouses, silo and cold storages in the form of markets by declaring them as market sub-yards and the establishment of collection centres outside the market yards to be purchased directly from the produce of farmers.

16_RPH_2018_adhmiyam 24

16 \it-c1,4 At4T 311171TIPT •F'1( 11 Zitta, 2018

Agricultural Produce Market Committees of the State issue Licences to their traders in their respective regions for business. The produce of the farmers should be purchased more and more by the traders of the State through e- trade; for this purpose it is required to ease the process of single licence so that the farmers could be able to receive more and more relevant prices for their produce as a result of comparatively more competitions.

In orders to encourage agriculture traders to follow prescribed rules and procedures while carrying out their trade, it is also necessary to constrain illegal and irregular practices that circumvent the fee-net and adversely affect fair trade practices. Therefore in order to aid implementation of reasonable and effective procedure, it is required to make provision of composition fee for other punishable offence under the said Act in addition to illegal movement

of specified agricultural produces. It has therefore been decided to amend the aforesaid Act to provide more than one option

of market for the sale of agricultural produce of the farmers in addition to the existing market yards, to establish private market yards, to establish special commodity market yards, to declare the warehouses, cold storages and silo as market sub-yards and to establish collection centres for the direct purchase through farmers and to make provision for the regulation of the said purpose together with providing financial autonomy to the market committees and prescribing the representation of stake holders in the committees and making effective provision of composition.

The Uttar Pradesh Krishi Utpadan Mandi(sanshodhan) Vidheyak, 2018 is introduced

accordingly. By order,

VIRENDRA KUMAR SRIVASTAVA, Pramukh Sachiv.

titKrE010410-ROltiO 16 '0•61421-2018—(39)--599 Ardt—tratt1/30ThlIZ)1

07101410—Wn0 6 R1i0 f4tilt-12-4-2018—(40Y300 Wittli— ileVitel/81114R)

16 RPH_2018_adhiniyam 24