ORISSA AGRICULTURAL PRODUCE MARKETS ACT, 1956
(1) This Act may be called the Orissa Agricultural Produce Markets Act, 1956.
(2) It extends to the whole of the State of Orissa.
(3) It shall come into force at once.
(1) In this Act, unless there is anything repugnant in the subject or context-
1[(i) "Agricultural Produce" means such produce (whether processed or not) of agriculture, forest, animal husbandry, agriculture, horticulture and pisciculture as are specified in the Schedule;]
1[(ii) "Agriculturist" means a person who ordinarily, by his own labour or by the tabour of any member of his family or who, by the labour of his tenants, servants, hired labourer or otherwise, is engaged in the production or growth of agricultural produce which has not-been processed but does not include a trader, commission agent, processor or broker in or in relation to agricultural produce although such trader, commission agent, processor or broker may also be engaged in the production or growth of agricultural produce;
(1) The State Government may by notification declare its intention of regulating the purchase and sale of such agricultural produce and in such area, as may be specified in the notification. Such notification may also be published in the regional language of the area in a newspaper circulated in the said area or in such other manner as the State Government may deem fit.
(2) Any objection or suggestion which may be received by the State Government within a period of not less than one month to be specified in the said notification may be considered by the State Government.
(1) After expiry of the period, specified in the notification issued under Section 3 and after considering such objections and suggestions as may be received before such expiry and after holding such inquiry as may be necessary, the State Government may, by ratification declare the area specified in the notification under Section 3 or any portion thereof to be a market area for the purpose of this Act in respect of all or any of the kinds of agricultural produce specified in the said notification. A notification under this section may also be published in the regional language of the area in a newspaper circulated in the said area or may be published in such other manner as the State Government may deem fit. (2) For the removal of doubts, it is hereby declared that a notification published in the Gazette under Section 3 or under Sub-section (1) shall have full force and effect notwithstanding any omission to further publish t
The State Government shall establish a Market Committee for every market area in respect of the agricultural produce for which the said area is declared to be a market area under Section 4. It shall be the duty of the Market Committee to enforce the provisions of this Act, and the rules and bye-laws made thereunder and the conditions of the licence granted under Sub-section (3) of Section 4 in such market area and within such distance thereof as may be specified in the notification under Subsection (1) of Section 4 and, when so required by the State Government, to establish a market therein providing for such facilities as the Slate Government may from time to time direct in connection with the purchase and sale of the agricultural produce concerned.
[(1) Every Market Committee shall be constituted in the manner prescribed and shall consist of seventeen members, of whom-(i) four shall be persons elected by the licensed traders from among themselves ;
(ii) eight shall be persons elected by Organisation of agriculturists in the market area recognised by the State Government for the purpose and where no such Organisation exists, they shall be nominated by the Collector of the district ;
(iii) two shall be persons elected by the local authorities within whose limits the market area is situated, of whom-
(a) one shall be elected by the Councillors of the Municipality; and
(b) the other shall be elected by the members of the Grama Panchayat :
Provided that
(1) Notwithstanding anything contained in this Act or any other law for the time being in force, any person or body of persons like company registered under the Companies Act, 1956 or a co-operative society registered under the Orissa Co-operative Societies Act, 1962 or a co-operative registered under the Orissa Self-Help Co-operative Act, 2001, may, after obtaining a licence from the State Government, establish a private market for the purpose of sale or purchase of any agricultural produce within such area as the State Government may, by notification, declare and subject to such conditions and restrictions as may be specified therein :
Provided that, no licence shall be granted for the purpose of sale or purchase of common varieties of paddy and rice, and for the establishment of any private market within a radius of one kilometre from an existing market yard.
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(1) The State Government may suspend or cancel the licence if, -
(a) the licensee has obtained the licence by means of fraud or misrepresentation of facts;
(b) the licensee or any servant or anyone acting on his behalf, has violated any of the terms and conditions of licence;
(c) the licensee in combination with other licensee wilfully commits any act or abstains from carrying his normal business in the market area, with an intention of obstructing, suspending or stopping the marketing of agricultural produce in the market and in consequence whereof the marketing of any such agricultural produce has been obstructed, suspended or stopped;
(d) the licensee has been adjudicated as an insolvent or is an undischarged insolvent; or
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In this chapter, unless the context otherwise requires, -
(a) "Contract Farming" means farming by a person or a firm, registered under the Indian Partnership Act, 1932, or a company registered under the Companies Act, 1956 or a Co-operative Society registered under the Orissa Co-operative Societies Act, 1962 or a Co-operative registered under the Orissa Self-Help Co-operatives Act, 2001 or a Government Agency called the Contract Farming Producer under a written agreement with another person or body of persons called Contract Farming Sponsor to the effect that produce of such Contract Farming Producer shall be purchased as specified in the agreement, by the Contract Farming Sponsor.
(b) "Contract Farming Agreement" means the agreement made for contract farming between the Contract Farming Producer and the Contract Farming Sponsor; and
Contract Farming Agreement shall be governed in the manner laid down hereinafter.
(1) Contract Farming Sponsor shall register himself or itself with the Market Committee in such manner and with such fee payable to the Market Committee as may be specified by the State Government.
(2) The Contract Farming Sponsor shall get the Contract Farming Agreement recorded with the concerned Market Committee and the Contract Farming Agreement shall be in such form containing such particulars and terms and conditions as may be specified by the State Government.
(3) Dispute arising out of the Contract Farming Agreement may be referred to the Director for settlement and the Director shall decide the dispute in a summary manner within thirty days from the date of reference, after giving the parties a reason
Every Market Committee shall be a body corporate by such name as the State Government may, by notification specify. It shall have perpetual succession and common seal, may sue and be sued on its corporate name and shall be competent to acquire and hold, lease, sell or otherwise transfer any property and to contract and to do all other things necessary for the purposes for which it is established.
A Market Committee may, subject to the provisions of this Act and the rules made thereunder by itself or conjointly and in co-operation with any other Market Committee, appoint one or move of its members to be a Sub-Committee or to be a Joint Committee a for the conduct of any work or to report on any matter as it may think fit.
(1) The Market Committee may employ such officers and employees as may be necessary for the management of the market and may pay such officers and employees such salaries as the Market Committee thinks fit.
(2) The Market Committee shall, in the case of any officer or employee of Government whom it employs, make such contributions towards his pension, gratuity and leave allowances as may be required by the conditions of his service to be paid by him or on his behalf.
1[(3) The Chairman, Vice-Chairman, the Secretary and other officers and servants of the Board and Market Committee shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code.
(1) Every contract entered into by a Market Committee shall be in writing and shall be executed on behalf of the Market Committee by its Chairman, and two other members of the Committee.
(2) No contract other than a contract executed as provided in Sub-section (1) shall be binding on Market Committee.
It shall be competent for a Market Committee to levy and collect such fees (hereinafter referred to as the market fees) not being less than one rupee from every purchaser for every hundred rupees worth of agricultural produce marketed in the market area in such manner as may be prescribed and at such rate as may be specified in the bye-laws:
Provided that the rate of fees to be specified in the bye-laws shall not exceed three per cent of the value of agricultural produce sold in the markets within the market area
Provided further that no such fees shall be levied and collected in the same market area in relation to any agricultural produce in respect of which fees under this section have already been levied and collected therein.
Explanation - For the purpose of this section all notified ag
(1) The Chairman, Secretary or any other officer or servant of the Market Committee duly authorised by it in this behalf may, for the purposes of this Act, require any person carrying on business in any kind of notified agricultural produce to produce before him the accounts and other documents and to furnish any information, relating to the stocks of such agricultural produce or purchase, sale and delivery of such agricultural produce by such person and also any other information relating to payment of market lees by such person.
(2) All accounts and registers maintained by any person in the ordinary course of business in respect of any notified agricultural produce and documents relating to stock of such agricultural produce or purchase, sale and delivery of such produce in his possession and the office, establishment, godown, vessels or vehicles of such person shall be open to
(1) Notwithstanding anything contained in -the Orissa Weights and Measures Act (VII of 1943), if any difference arises between an Inspector appointed under Section 15 of the said Act and any person interested as to the meaning or construction of any rule ,or as to the method of verifying, auditing or stamping any weight or measure or measuring instrument in any market area, such difference may at the request of the party interested or by the Inspector of his own accord, be referred to the Market Committee and the decision of the Market Committee shall, subject to the provisions of Sub-section (2) be final and shall be deemed to have been given under Section 22 of the Orissa Weights and Measures Act, VII of 1943.
(2) An appeal shall lie within the time prescribed from the decision under Sub-section (1) to the State Government or such officer as the State Government may appoint in t
(1) A Market Committee may, with the previous sanction of the State Government, raise money required lot carrying out the purposes for which it is established on the security of any property vested in it and of any fees leviable by it under this Act.
1[(2) The Market Committee may, for the purpose of meeting the initial expenditure on land, buildings and equipment required for establishing a market, obtain a loan from the State Government or the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955) or any Subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (33 of 1959) or a Bank specified in Column 2 of the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or and corporate body including a company as defined in Section 3 of the Companies Act, 1956 (1 of 1956) in whi
(1) All moneys received by a Market Committee shall be paid into a fund to be called The Market Committee Fund" and all expenditure incurred by a Market Committee under or for the purposes of this Act, shall be defrayed out of the said fund. Any surplus remaining with the Market Committee after such expenditure has been met shall be invested as may be prescribed in this behalf.
(2) Every Market Committee shall pay to the State Government the cost of any additional or special staff employed by the State Government in consultation with such Market Committee for giving effect to the provisions of this Act, in the market area for which such Market Committee is established.
(3) The State Government shall determine the cost of such additional or special staff and shall, when their staff is employed for the purposes of more than one Market Committees, apportion such cost among the
Subject to the provision of Section 15, the Market Committee Fund shall be expended for the following purposes, namely :
(1) The acquisition of site for the market;
(2) The maintenance and improvement of the market;
(3) The construction and repair of building necessary for the purposes of the Act and for the health, convenience and safety of the persons using the market;
(4) The provision and maintenance of standard weights and measures;
(5) The pay, pension, leave allowance, gratuity, compensation for injury resulting from accident, compassionate allowance and contribution towards leave allowance, pension or provident fund of the officer, and staff employed by it;
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When any land is required for the .purpose of this Act, the State Government may, on the request of the Market Committee proceed to acquire it under the provisions of the Land Acquisition Act, 1 of 1894, or any other law for the time being in force, and on payment by the Market Committee, of the compensation awarded under the said Act or other law, as the case may be, and of all other charges incurred by the State Government on account of such acquisition, the land shall vest in the Market Committee.
No person shall make or recover any trade allowance, other than an allowance, prescribed by rules or bye-laws made under this Act, in any market area in any transaction in respect of the agricultural produce concerned and no Civil Court shall, in any suit or proceeding arising out of any such transaction have regard to or recognise any trade allowance not so prescribed.
Explanation-Every deduction other than a deduction on account of deviation from sample when the purchase is made by sample or on account of deviation from standard when the purchase is made by reference to a known standard on account of difference between the actual weight of the container and the standard weight or on account of the admixture of foreign matter, shall be regarded as a trade allowance for the purpose of this section.
(1) For the purpose of ,exercising superintendence and control over Market Committees and for exercising such other powers and performing such function as are conferred or entrusted under this Act, the State Government shall, by notification in the official Gazette, establish a Board called the Orissa State Agricultural Marketing Board.
(2) The Board shall consist of the following members, namely :
(i) Minister-in-charge of Co-operation -Ex officio Chairman;
(ii) the Director of Marketing-Ex-officio Member Secretary;
(iii) the Secretary, Agriculture and Co-operation
Department - Member;
(iv) the Secretary, Revenue Department - Member;
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(1) The Board shall, subject to the provisions of this Act, exercise the following powers, namely :
(i) superintendence and control over the working and other affairs of the Market Committees including programmes under taken by such committees for the development of markets and market areas;
(ii) giving direction to Market Committees in general or any Market Committee in particular with a view to ensuring efficiency thereof;
(iii) approval of proposals for selection of sites by a Market Committee for development of market.
(2) Without prejudice to the generality of the foregoing provisions it shall be the duty of the Board-
(i) to supervise and guide the Market Committees in the preparation of plan and e
(1) The Board may, with the previous approval of the State Government, make regulations not inconsistent with this Act and the rules made thereunder, for the administration of the affairs of the Board.
(2) In particular and without prejudice to rye generality of the foregoing powers, such regulations may provide for all or any of the following matters, namely :
(a) the summoning and holding of meetings of the Board, the time and date when such meetings are to be held, the conduct of business at such meetings and the number of persons necessary to form a quorum thereof;
(b) the powers and duties of the officers and servants of the Board;
(c) the salaries and allowances and other conditions of service of officers and servants of the Board ;
The Board, subject to the provisions of this Act, may, from time to time, with the previous sanction of the State Government and subject to such conditions as the State Government may by general or special order determine, borrow any sum required for the purposes of this Act from the State Government or from any financial institution whether by issue of bond or stock.
All moneys received by or on behalf of the Board shall constitute a fund called the Marketing Development Fund.
No act done or proceedings taken under this Act by the Board or a sub-committee appointed by the Board shall be invalidated merely on the ground of -
(a) any vacancy or defect in the constitution of the Board or any Sub-committee; or
(b) any defect or irregularity in the appointment of any person acting as a member thereof ; or
(c) any defect or irregularity in such act or proceedings not affecting the substance.
Every Market Committee shall, out of its funds, pay to the Board as contribution such percentage of its income derived from licence fees and market fees not less than five per cent of such income as may be prescribed to meet the expenses of the establishment of the Board and also those incurred in the interest of the Market Committee.]
CASE LAW :
Sec. 18-G and 45-B - Orissa Agricultural Produce Markets Rules as amended in 1996 - Rules 33, 39, 40, 45-B - The Act provides for contribution of 5% to the Board - Notification of contribution over and above 5% is invalid : 1997 (I) OLR 497 : AIR 1997 Ori. 172.
(1) The State Government may, if they think fit, on the recommendation of a Market Committee supported by two-thirds of its total number of members, remove any member of such Committee elected or nominated under this Act if such member has, in the opinion of the State Government, been guilty of neglect or misconduct in the discharge of his duties or of any disgraceful conduct or has become incapable of performing his duties as a member :
Provided that no resolution recommending the removal of any member shall be passed by the Market Committee unless the member to whom it relates, has been given a reasonable opportunity of showing cause why such recommendation should not be made.
(2) The decision of the State Government under Sub-section (1) shall be final.
(1) If in the opinion of the State Government a Market Committee is not competent to perform or persistently makes default in performing the duties imposed upon it by or under this Act or abuses its powers, the State Government may, by notification supersede such Market Committee :
Provided that before issuing a notification under this Sub-section, the State Government shall give a reasonable opportunity to the Market Committee for showing cause why it should not be superseded and shall consider the explanation and objection, if any, of the Market Committee.
(2) Upon the publication of notification under Sub-section (1) superseding a Market Committee the following consequences shall ensue:
(i) All the members as well as the Chairman of the Market Committee shall, as from the date of such pub
(1) Whoever-
(a) in contravention of Section 4 establishes a market or uses any place in the market area for marketing of any agricultural produce or operates as a trader, commission agent, broker, processor, weighman, measurer, surveyor, warehouseman or in any other capacity without a licence shall, on conviction be punishable with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both and in the case of continuing contravention, with a further fine which may in the case of contravention of Sub-section (3) of the said section extend to one hundred rupees and in any other case to fifty rupees per day during which the contravention is continued after the first conviction;
(b) in contravention of Section 11 evades or tries to evade payment of market fees of cess or obstructs any office
(1) No offence under this Act or any rule or bye-laws made thereunder, shall be tried by a Court other than, that of a Judicial Magistrate of the list class or that of a Judicial Magistrate of the second class specially empowered in this behalf.]
(2) Prosecution under this Act or any rule or bye-laws made thereunder, may be instituted by any person duly authorised in writing by the Market Committee, in this behalf.
No suit shall be instituted against any Market Committee or any member, officer or employee thereof, any person acting under the direction of any such Market Committee, member, officer or employee for anything done or purporting to be done, in good faith as such member, officer or employee under this Act or any rule or bye-law made thereunder until the expiration of two months next after notice in writing, stating the cause of action, the name and place of abode or the intending plaintiff and the relief which he claims, has been in the case of Market Committee, delivered or left at its office, and in the case of any such member, officer, employee or person as aforesaid, delivered to him or left at his office or usual place of abode, and the plaint shall contain a statement that such notice has been so delivered or left.
(2) Every such suit shall be dismissed unless it is institute
Every sum due to a Market Committee or the Board on account of any charges, costs, expenses, fees, rent or any other account under the provisions of this Act or the rules or bye-laws made thereunder and., every sum due from a Market Committee or the Board to the State Government shall be recoverable as arrears of land revenue].
The State Government may at any time call for and examine the proceedings of any Market Committee for the purpose of satisfying itself as to the legality or property of any decision or order passed by the Committee. If from the record of such proceedings it appears to the State Government that any such decision or order should be modified, annulled or reversed, the State Government may pass such orders thereon as they deem fit.
The State Government may, by notification, add to amend of cancel any of the items of agricultural, produce specified in the Schedule.
(1) The State Government may,. either generally or specially for any market area or market areas, make rules for the purposes of giving effect to 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 :
(a) The election and nomination of member of the Market Committee, the manner of election, the preparation and revision of lists of voters from time to time and the payment of all expenditure in connection with or incidental to such election;
(b) The powers to be exercised and the duties to be performed by the Market Committee and its Chairman;
(c) The term of office of the Chairman and Vice-Chairman of the Market Committee;
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(1) Subject to any rules and regulations made under this Act, and with the previous sanction of the Director or any other officer specially empowered in this behalf by the State Government a Market Committee may, in respect of the market crop for which it is constituted or any market established therein, make bye-laws for the regulation of the business (including meeting, quorum and procedure) of the Market Committee, and the conditions of trading in the market area including the rates and manner of collection or refund of market fees or any other fees levied under this Act.
(2) Where a Market Committee fails to make bye laws under this section within six months from the date on which the Orissa Agricultural Produce Markets (Amendment) Act, 1984 (Orissa Act 27 of 1984) comes into force or the date of its constitution, whichever is later, the Director may make such bye-laws as he
The State Government may delegate to any of its officers any of the powers conferred on it by or under this Act.
The Madras Commercial Crops Markets Act, XX of 1933, is hereby repealed.
SCHEDULE
[See Section 2 (1) (i)]
I. Fibres -(1) Cotton (ginned and unginned): (2) Sunhemp (3) Jute.
II. Cereals-(1) Wheat; (2) Paddy (husked and unhusked) (3) Jowar; (4) Baira; (5) Maize; (6) Ragi (Mandia); (7) Suan;
III. Pulses-(1) Harad (Red gram); (2) Biri (Black gram); (3) Mung (Green gram); (4) Kolthi (Horse gram); (5) Buta (Bengal gram) ; (6) Chana; (7) Khesari; (8) Jhudang; (9) Kandula (Hill gram).
IV. Oilseeds-(1) Groundnut (shelled and unshelled); (2) Linseed; (3) Sesamum; (4) Niger (Tila); (5) Mustard; (6) Cocoanut; (7) Cotton seed; (8) Castor seed.
V. Narcotics-Tobacco.
VI. Gur and Sugarcane.
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