The Government can exempt provisions of the Andhra Pradesh Markets Act when justified by public interest, maintaining market regulation objectives.

1.At the interlocutory stage, both the parties consented for final adjudication of the matter.

2. Initially the writ petition is filed seeking declaration that the action of the first respondent in establishing Ryot Bazaars within the Hyderabad Market Committee area as illegal, improper, unjust and contrary to the provisions of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 , and for further declaration that the establishment of Ryot Bazaars is without jurisdiction and as ultra vires. The said writ petition was filed on 9-2-1999.

3. The contentions in the said writ petition are that after following the procedure prescribed under various provisions final notification has to be issued and after such notification the Government has to constitute a market committee for the notified area declared under S.3 of the A. P. (Agricultural Produce and Livestock) Markets Act, 1966 (hereinafter called the 'Act', for brevity). It is further contended that S.7 of the Act prescribes that if a person wants to set up or establish or use or continue or allowed to be continued any place for the purchase, sale, storage, weighment, curing, dressing or processing of any notified agricultural produce or products of livestock, or for purchase or sale of livestock is bound to take a licence in respect of such place. Under this Section power is also conferred to exempt from taking such licence. It also provides for withdrawal of such exemption in certain cases. Further, it is stated that such licensee shall comply with the provisions of the Act, Rules, Bye - laws and the conditions specified in the licence.

4. The important submission is that S.7(6) of the Act contemplates that no person shall purchase or sell any notified agricultural produce, livestock and products of livestock in a notified market area, outside the market in that area and that the Act has been enacted mainly in the interest of growers - sellers to enable them to get a reasonable price for their produce. The Commission Agent is under obligation to provide certain facilities for the grower - seller in the market yard. The Commission Agent further collects market fee from the purchaser and remits the same to the Market Committee, and therefore, Commission Agents are doing service both to the grower - seller and the Market Committee. It is contended that while so, the first respondent ignoring the existence of the Act started establishing Ryot Bazaars, as a result the farmers viz., grower - sellers themselves can sell their agricultural produce directly to the purchasers. Under these circumstances, the petitioner - Association raised the following questions :
"(1) Whether the Constitution of Ryot Bazaars are traceable to any provisions of law?
(2) Whether the Ryot Bazaars are being run parallel to Market Yards without any authority of law and there is a conflict between the Revenue Department and Market Committee in this regard?

5. Subsequently, the Government of Andhra Pradesh issued G.O. Ms. No. 37, Agriculture and Co - operation (Mktg. I), dated 14-2-1999, which reads as follows :
"In exercise of the powers conferred under S.35 of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 (Act 16 of 1966) the Governor of Andhra Pradesh hereby exempt the persons selling notified agricultural produce, livestock or products of livestock grown, reared or produced by them to persons for their own domestic consumption or purchasing such agricultural produce, livestock or products of livestock for their own domestic consumption from the provisions of sub-