STATEMENT OF OBJECTS AND REASONS 

                   The Nagaland State Agricultural Produce Marketing (Regulation)  Act 1985 was notified in 1989.  It was framed in accordance with the then Marketing Acts of more developed  States, which required regulations for marketing of surplus agricultural produce, although such a situation was not prevalent in the State at that point of time.  On the basis of the bare principles of the Act, the Nagaland State Agricultural Marketing Board was first constituted in 1990 and Agricultural Produce Marketing Committees were also constituted in some of the districts.  This was however done without much rationale as there was insufficient surplus production to feed the market. 

            Meanwhile, impact of the globalization process resulted in liberalization of trade in agriculture commodities, forcing agricultural markets all over the world to undergo major changes.  In India too, integration and strengthening of the existing agricultural marketing system was necessitated.  Therefore reforms are now being initiated to enable the farming community to benefit from the opportunities of the new global market access by reducing controls on markets; making the system conducive for competition; bringing about professionalism in the management of existing market yards and market fee structure and at  the same time placing adequate safeguards to avoid any exploitation of  farmers by the private trade and industries.  In this regard, with the view to facilitated State Government to make necessary amendments to existing provisions of their respective marketing Acts, the State Govt. of India, Ministry of Agriculture, drafted a model legislation titled the State Agricultural Produce Marketing (Development and Regulation) Act, 2003 which has incorporated appropriate provisions in consonance with the needs of a changed market environment.  The draft legislation was accepted in principle by most of the State Governments, subject t0 minor regional and deviations. 

            The recent past, Nagaland too has seen some major changes.  There has been a paradigm shift from subsistence agriculture to commercial scale production and its impact is becoming apparent in the cropping and production pattern in respect of some selected crops.  In order to meet the new challenges, particularly in the area of marketing, necessary amendments are required to be made in the existing regulations.  The Nagaland Agricultural Produce Marketing (Development & Regulation) Bill 2004 has thus been framed, incorporating the reform measures provided in the Model Act as mentioned above.  The Bill is proposed to replace the existing Act of 1985 by repealing the same.           

The main features of the Nagaland Agricultural Produce Marketing (Development and Regulation) Bill 2005 are highlighted below: 

1.                  The Bill provides for Private Markets, Direct Purchase Centres and Consumer/Farmers Markets for direct sale and promotion of Public – Private Partnership in the development and management of agricultural markets.  It also provides for special markets for commodities like Flowers and Fruits. 

2.                  There is a separate chapter (Chapter VII) for the regulation and promotion of Contract Farming. 

3.                  Commercial scale production and the process of a regulated market system are however very new developments in the State.  Therefore taking into account the prevailing conditions, the Bill provides for nomination of members to the Agricultural Produce Market Committee (APMC) instead of an election process; such a system exists in other States like Meghalaya and Delhi. 

4.                  Out of the 5 (five) members to be nominated from amongst agriculturists to each APMC, the Bill provides for 2 (Two) women members. 

Kohima
March 2005-09-02 

(Dr. T.M. Lotha)
Minister, Agriculture

FINANCIAL MEMORANDUM 

            Clauses 10 and 60 of the Bill, on account of establishment and maintenance of Market Committees and Board, will involve a recurring expenditure of about

 Rs. 50,00,000 (Rupees fifty lakhs only) per annum from the Consolidated Fund of the State of   Nagaland.
 

MEMORANDUM REGARDING DELEGATED LEGISLATION 

            The State Government is delegated with the power to make Rules under clause (1) Section 109 of the Bill for carrying out purposes of the Act. 

            Under Clause (1), Section 104 of the Bill and with the previous approval of the State Government, the Board is empowered to make Rules not inconsistent with the provisions of the Act.

            Clause (1), Section 110 also delegates power to the Market Committee (s) to make bye-laws for regulation in respect of market area(s). 

            Every Rule made under this Act shall be laid before the Nagaland Legislature Assembly. 

            The delegated legislation is of normal character.