Sl.No.

Area of Reforms

Position of the Act

before amendment

Position of the Act

after amendment

Remarks

1

2

3

4

5

1

Title of the Act

The Punjab Agricultural Produce Markets Act 1961

The Punjab Agricultural Produce Markets(Amendment) Act 2005

2.

Allowing setting up of Competitive Markets by private persons, farmers and consumers.

Under Section 2(i) –“market” means a market established and regulated under the Act for the notified market area and includes a market proper, a principal market yard and sub-market yard.

Under Section 2(n)-“Principal Market Yard” and “sub market yard” means an enclosure, building or locality declared to be a principal market yard and sub-market yard.

Under Section 7-

(i) For each notified market area there shall be one principal market yard and one more sub-market yard as may be necessary.

(ii) The State Govt. may, by notification, declare any enclosure, building or locality in any notified market area to be principal market yard for the area and other enclosures, buildings or localities to be one or more sub-market yard for the area;

Under Section 2(i) –“market” means a market established and regulated under this Act for the notified market area and includes a market proper, a principal market yard and sub-market yard and private market yard..

Under Section 2(nn)- “private market yard” and “sub-market yard” means an enclosure, building or locality other than the principal market yard or sub-market yard in the notified market area, owned and operated by any person or company or cooperative society in accordance with the terms and conditions of a license, granted by the State Government and where infrastructure has been developed by such person or company or cooperative society as the case may be;

Under Section 7-

(1) For each notified market area, there shall be one principal market yard, one or more sub-market yards and one or more private market yards as may be necessary.

(2) The State Government may, by notification, declare any enclosure, building or locality in any notified market area to be principal market yard for the area and other enclosures, buildings or localities to be one or more sub-market yards for the area.

(3) Every person or company or cooperative society, as the case may be, desiring to obtain a licence for private market yard, shall apply to such authority, in such manner and with such fee, as may be prescribed.

3.

Direct sale/ procurement from the farmers field

No provision

Under Rule 30, sub-rule 13 of the  Punjab Agricultural Produce Markets (General)Rules,2001 –

(i)No market fee shall be levied on wheat and maize purchased by the wheat and maize processing industries for manufacture of products there from such as wheat flour and its secondary/tertiary products such as bread, biscuits, pasta, noodles, etc.; starch and its derivatives; gluten etc. in the State of Punjab.

(ii) No market fee shall be levied on fruit and vegetables purchased by fruit and vegetable processing industries through contract farming.

(iii) For new fruit and vegetable processing units who have not established the contract farming relationship with farmers shall be granted exemptions from the market fee for a period of two years to source their raw material from the farmers”.

4.

Institutional support to contract farming through

         i.   Registration of

 sponsoring       company

    ii.      Recording of Contract          Farming agreement

      iii.   Time bound dispute resolution mechanism 

  iv.      Indemnity to farmers land       

No provision

Under rule 30,sub-rule 13 of the Punjab Agricultural Produce Markets (General)Rules,2001 –

(ii) No markets fee shall be levied on fruit and vegetables purchased by fruit and vegetable processing industries through contract farming.

(iii) For new fruit and vegetable processing units who have not established the contract farming relationship with farmers shall be granted exemptions from the market fee for a period of two years to source their raw material from the farmers”.

5.

Promote Public-Private Partnership in financing, construction, operation and management of agricultural markets.

No provision

No provision

6.

Market fee/tax.

1.Single Point levy in the entire process of marketing

2.Fee on

    i.      Direct Marketing

    ii.     Contract Farming

      iii. Processing

     iv. Exports

(3) Whether any rationalization/ Simplification done  in the levy of market fee.

Provision under Section 23 of the Act and under Rule 29(ii) exists for levying single point market fee.

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No change

Under rule 30 sub-rule 13 of the Punjab Agricultural Produce Markets (General)Rules,2001 –

(i)No market fee shall be levied on wheat and maize purchased by the wheat and maize processing industries for manufacture of products there from such as wheat flour and its secondary/tertiary products such as bread, biscuits, pasta, noodles, etc.; starch and its derivatives; gluten etc. in the State of Punjab.

(ii) No markets fee shall be levied on fruit and vegetables purchased by fruit and vegetable processing industries through contract farming.

(iii) For new fruit and vegetable processing units who have not established the contract farming relationship with farmers shall be granted exemptions from the market fee for a period of two years to source their raw material from the farmers”.

7.

Licensing :

    i.      Whether licensing system is simplified

  ii.      Whether provision made for issue of a single license to operate in the entire State or part of the State

Under Section 10- any person who desires to operate in the market area shall apply to the prescribed  authority for grant of licence.

Under rule 30(13)-

(i) No market fee shall be levied on wheat and maize purchased by the wheat and maize processing industries for manufacture of products there from such as wheat flour and its secondary/tertiary products such as bread, biscuits, pastas, noodles etc. starch and its derivatives, gluten etc. in the State of Punjab.

(ii) No markets fee shall be levied on fruits and vegetables purchased by fruit and vegetable processing industries through contract farming.

(iii) For new fruit and vegetable processing units who have not established the contract farming relationship with farmers shall be granted exemptions from the market fee for a period of two years to source their raw material from the farmers”.

8.

Whether Marketing Board has set up:

    i.      Separate extension cell to provide market led extension services to the farmers

       ii. Separate Agricultural Produce Marketing Standard Bureau to promote grading and standardization of agricultural commodities.

No Separate provision exists. However, extension, publicity activities are provided under Section 26.

No provision exists

No change

No change