KARNATAKA AGRICULTURAL PRODUCE MARKETING (REGULATION) (AMENDMENT) RULES, 2008

 

PREAMBLE

Whereas, the draft of the following rules further to amend the Karnataka Agricultural Produce Marketing (Regulation) Rules, I96S which the Government of Karnataka proposes to make in exercise of the powers conferred by Section 146 of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 (Karnataka Act 27 of 1966) was published as required by sub-section (1) of the said Section in Notification No CD 229 MRE 2007, dated 24-12-2007 in Part IV-A of Karnataka Gazette, Extraordinary, dated 27-12-2007 inviting objections and suggestions from all persons likely to be affected thereby within Thirty days from the date of its publication in the Official Gazette.

And whereas, the said Gazette was made available to the public on 27th December, 2007.

And whereas, the objections and suggestions received in respect of the said draft have been considered by the State Government.

Now, therefore, in exercise of the powers conferred by sub-section (1) of Section 146 of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 (Karnataka Act 27 of 1966), Government of Karnataka hereby makes the following rules, namely

Rule - 1. Title and Commencement.

(1)     These rules may be called the Karnataka Agricultural Produce Marketing (Regulation) (Amendment) Rules, 2008.

(2)     They shall come into force from the date of their publication in the Official Gazette.

Rule - 2. Amendment of long title and preamble.

In the long title and preamble of the Karnataka Agricultural Produce Marketing (Regulation) Rules, 1968 (hereinafter referred to as the said rules) for the brackets and word "(Regulation)" the brackets and words "(Regulation and Development)" shall be substituted.

Rule - 3. Amendment of Rule 2.

In Rule 2 of the said rules.

(i)       in clause (i), for the brackets and word "(Regulation)" the brackets and words "(Regulation and Development)" shall be substituted.

(ii)      After clause (viii), the following clause shall be inserted, namely.

"(ix) The words and expressions used in these rules but not defined herein shall have the same meaning as assigned to them in the Act".

Rule - 4. Substitution of Rule 7.

For Rule 7 of the said rules, the following shall be substituted, namely.

7. Notices of Election.

"Not less than twenty days before the date for the election the Deputy Commissioner shall cause a notice in Kannada to be published in a Kannada newspaper having wide circulation in the market area and at the places specified in sub-rule (5) of Rule 5 stating.

(a)      The number of persons to be elected in each constituency and by the co-operative marketing societies and Agricultural co-operative processing societies referred to in sub-section (1) of Section 11.

(b)      The last date fixed for making nominations which shall be the seventh day after the date of publication of the notification or if the day is public holiday the next succeeding day which is not a public holiday.

(c)      The date for the scrutiny of nominations which shall be the day immediately following the last date of making nominations or if that day is public holiday the next succeeding day which is not a public holiday.

(d)      The last date for withdrawal of candidatures which shall be the second day after the date for the scrutiny of nominations or if that day is public holiday the next succeeding day which is not public holiday.

(e)      The date on which a poll shall if necessary be taken which shall be a date, not earlier than the tenth day after the last date for the withdrawal of candidatures and the hours during which poll shall not be less than eight hours.

(f)       The date for counting of votes shall not be more than two days after the date of polling.

(g)      The date before which election shall be completed."

Rule - 5. Substitution of Rule 46-A.

For Rule 46A of the said rules, the following shall be substituted, namely.

46-A. Honorarium to the Chairman and Vice-Chairman of the market committee.

"The Chairman and the Vice-Chairman of a market committee shall be paid an honorarium at the rates specified below.

The market committee whose average Gross Receipts by way of Market fees and licence fees during the preceding three years is:

Provided that the honorarium payable to the Chairman and the Vice-chairman of a newly constituted Market Committee under Section 10 shall be Rs. 1000/- and Rs. 500/- per month respectively during the first year and thereafter on the basis of Gross Annual Income of the preceding year up to the completion of the term of the said committee."

Rule - 6. Amendment of Rule 60-A.

In Rule 60-A of the said rules.

(i)       for sub-rule (5), the following shall be substituted, namely.

"(5) The amount of advance shall not exceed sixty per cent of the prevailing market value of the produce pledged in favour of the Market committee, subject to a maximum of rupees two lakhs in each case."

(ii)      for sub-rule (8), the following shall be substituted, namely.

"(8) The period of advance shall not exceed one eighty days from the date of pledging of the produce."

(iii)     for sub-rule (9), the following shall be substituted, namely.

"(9) No interest shall be charged on the advance for a period of first ninety days from the date of disbursement of the advance under sub-rule (1), and thereafter interest shall be charged at the rate specified in the table below till the date of release or disposal of the produce under sub-rule (10) or (16).

 

TABLE

(iv)    For sub-rule (19) the following shall be substituted.

"(19) The market committee may also accept warehouse receipts issued to. a producer-seller by the Karnataka State Warehousing Corporation or Central Warehousing Corporation or Taluka Agricultural Produce Co-operative Marketing Societies (TAPCMS) or organizations like Malanadu Arecanut Marketing Co-operative Society, Limited (MAMCOS), Central Arecanut and Cocoa Marketing and Processing Co-operative Society Limited (CAMPCO) or such other Co-operative Societies as notified by Director of Agricultural Marketing from time to time and grant short term advance on the pledge of such receipt to an extent of sixty per cent of the market value of the produce pledged subject to a maximum of rupees two lakhs in each case."

Rule - 7. Amendment of Rule 60-C.

In Rule 60-C of the said rules.

(i)       in clause (9), after the words, brackets and figure "identified by it under clause (8)", the words, brackets and figures and infrastructural facilities identified under clause (1) to (7)" shall be inserted.

(ii)      in clause (9), for the TABLE and the Explanation the following shall be substituted, namely.

 

"TABLE

Explanation.(1) A market committee shall spend thirty per cent of the amount specified in the table above for the purpose of maintenance of roads developed by it.

(2) Estimated cost of each road work shall not be less than rupees one lakh and the work has to be undertaken by following tender process."

Rule - 8. Amendment of Rule 61.

In sub-rule (2) of Rule 61 of the said rules, in sub-rule (2) the proviso, for the words, "one thousand rupees", the words, "twenty-five thousand rupees" shall be substituted.

Rule - 9. Substitution of Rule 64.

For Rule 64 of the said rules, the, following shall be substituted, namely.

64. Submission of Budget.

"(1) An annual budget estimate of the income and expenditure of the committee for the ensuing market year shall be prepared in Forms 29-A and 29-B by the Secretary and placed before the committee. The committee shall meet before 15th January each year to consider the budget After consideration and approval of the budget, the committee shall forward the same to the Director of Agricultural Marketing or the officer authorized by him for approval before the end of January every year.

(2)   The budget shall be accompanied by the following statements.

(a)      A statement in Form 31 showing the details of the estimated expenditure on works proposed to be undertaken during the year already approved by the Director of Agricultural Marketing in the annual action plan. A statement in Form 32 showing the loans obtained, the balance outstanding under each loan and the amount to be discharged during the budget year on account of repayment of principal and payment of interest;

(b)      A statement in Form 33 showing the fixed contribution (to the Consolidated Fund) payable by the committee.

(c)      If the committee fails to adopt the budget estimates and forward it to the Director of Agricultural Marketing or the officer authorized by him on or before the time specified under sub-rule (1) the Secretary shall prepare and forward the budget with statements referred above to the Director of Agricultural Marketing or the officer authorized by him and it shall be deemed to have been duly adopted by the committee:

Provided that in case the budget is not received back by the Committee duly sanctioned by the Director of Agricultural Marketing or any other officer authorized by him before the commencement of the market year, it shall be deemed to have been duly approved."

Rule - 10. Insertion of Rule 64-A and 64-B.

After Rule 64 of the said rules, the following shall be inserted, namely.

64-A. Revision of budget.

"If in the course of market year, the market committee finds it necessary, to modify the provisions made in the budget with regard to the receipts or to the distribution of the amounts to be expended on different heads it may make such modifications and submit for sanction of Director of Agricultural Marketing or the officer authorized by him.

64-B. Supplementary Budget.

The market committee where budget has been approved by the Director of Agricultural Marketing or the authorized officer in the current financial year cause a supplementary budget to be prepared and submit to the appropriate authority for sanction before 15th of December of the current year."

Rule - 11. Insertion of new Rule 65-A.

After Rule 65 of the said rules, the following shall be inserted, namely.

65-A. Accounts to be maintained by the Market functionary.

"(1) Every market functionary shall keep and maintain true and correct accounts either in Kannada or in English only relating to his business, showing the goods purchased, produced, processed, sold, imported or exported and value thereof separately together with the vouchers and bills.

(2)   Every market functionary shall keep separate purchase and sales accounts in respect of each agricultural produce held by him. He shall likewise maintain separate accounts in respect of each of the agricultural produce in respect of sales or purchase in the course of export or import.

(3)   Every market functionary shall keep current books of accounts at the place or places of business entered in licence. Every purchase and every sale shall be brought into account immediately as soon as purchase and sale is effected.

(4)   Every Commission Agent, Trader, Importer, Exporter, Stockist, shall maintain day to day stock accounts in respect of each and every agricultural produce dealt with by him. The stock account shall contain the particulars of purchases and receipts, sales, deliveries and balance of stock

(5)   Every processor, Ginner, Presser and manufacturer of agricultural produce shall maintain daily production account showing quantitative details of various raw materials used and quantitative details of agricultural produce manufactured or processed.

(6)   The accounts maintained by the market functionaries together with all vouchers, bills, way bills and transport permits relating to stock delivers, purchases, output and sales shall be preserved by them till the assessment for the year to which they relate become final and shall be kept at business premises mentioned in licence.

(7)   Accounts so maintained by the market functionary shall be open for inspection at all reasonable time of the working dates."

Rule - 12. Substitution of Rule 70.

For Rule 70 of the said rules, the following shall be substituted, namely

70. Preparation of plans.

"(1) Annual action plan in respect of the works to be undertaken during the ensuing year shall be prepared and submitted by the market committee before November of every year. After scrutiny, the Director of Agricultural Marketing shall communicate appropriate approval before December of the current year. The preparation of plans and estimates for works proposed to be undertaken at the expense of the market committee will he attended by the Engineering cell of Department of Agricultural Marketing. However the market committee may consult an Architect or an Engineer for the preparation of Plans and Estimates.

(2)   The Market Committee while preparing the General Fund Budget shall reserve 5% of the capital cost of the building of the Market Committee for maintenance and repairs. Maintenance and annual repairs be completed before December of every year Separate approval of Director of Agricultural Marketing is not necessary for taking up these works."

Rule - 13. Substitution of Rule 71.

For Rule 71 of the said rules, the following shall be substituted, namely.

71. Approval of plans and estimates.

"(1) Plans and Estimate for works as approved by Director of Agricultural Marketing under the Annual Action Plan under Rule 70 shall be technically examined by the competent officer of the Engineering Cell of the Department and the Engineering cell shall technically scrutinize and sanction the plans and estimates received from the market committee within thirty days from the receipt.

(2)   The Plans and estimates for works which are of urgent nature, the estimated cost of which does not exceed the maximum amount specified in column (2) of the table below, may be sanctioned by the market committee after getting the plans and estimates technically examined and approved by the Assistance Executive Engineer, Engineering Cell of the Agricultural Marketing Department.

 

TABLE

The market committee shall before taking up execution of the works under this sub-rule send copies of the plan and estimate to the Director of Agricultural Marketing or authorized officer with a report regarding necessity of the work taken up. Provided that the expenditure incurred under this rule shall be included in the supplementary budget and got approved".

Rule - 14. Substitution of Rule 74-A.

For Rule 74-A of the said rules, the following shall be substituted, namely.

74-A Issuance of Permit.

"(1) Every exporter, trader or other market functionary while transporting the goods outside the market area, shall issue a permit in triplicate in Form No. 35-A one copy of the permit shall be handed over to the buyer or agent which shall accompany the goods while in transit and the same shall be produced for inspection in the check post or to the officer authorized to exercise powers under Section 66 and 67 of the Act. The second copy of the permit shall be submitted to the Secretary of Market Committee having due control over the area within forty-eight hours of the issue of permit. The third copy shall be retained by the market functionary which shall be produced at the time of assessment or during inspection.

(2)   in addition to the above, the owner or the driver or the person in charge of the vehicle shall.

(a)      carry with him a goods vehicle record, a trip sheet or a log book as the case may be;

(b)      carry with him Bill of Sale or such other documents.

(3)   A Market functionary who wants to claim exemption under Section 65 of the Act shall produce a certificate in Form 35-B by him before the market committee, where he claims exemption."

Rule - 15. Amendment of Rule 76.

In Rule 76 of the said rules.

(1)     for sub-rule (6), the following shall be substituted, namely.

"(6) A licence granted under -sub-rule (4) shall, unless renewed remain in force, till the end of tenth market year including the year in which it has been granted."

(2)     after sub-rule (9), the following proviso shall be inserted, namely.

"Provided also that where a trader licensed in one Market Committee desires to effect purchase or, sale in the jurisdiction of another Market Committee, he may apply to the Director of Agricultural Marketing for licence in Form 37-A with information mentioned in the said form along with fees of Rs. 200/- (Rupees Two Hundred only) per market area. Director of Agricultural Marketing on receipt of such application together with required information and fees may grant licence to the applicant for carrying out trade in more than one market area in Form 37-B. Afterwards, the licence fee so received shall be sent to the concerned Market Committee. The concerned licence holder shall be required to submit returns of purchases of agricultural produce made by him as per the provisions of bye-law to the concerned Market Committee and shall have to pay the market fee on the purchases of agricultural produce made in the respective market area to the concerned Market Committee as per the provisions of the bye-law."

Rule - 16. Insertion of new PART VI-A.

After Rule 87-A of the said rules, the following shall be inserted, namely

 

"PART VI-A

Establishment of private market yards, direct purchase centers and farmer consumer markets etc.

87-B. Grant of licence for establishment of private, market yard.

(1)     Subject to the provisions of Section 72-A and 72-C of the Act, any person who has already established the infrastructure or desiring to establish a private market yard in one or more market areas may submit an application in writing to the Director of Agricultural Marketing in Form 46 for grant of licence or renewal thereof along with the documents. The Director of Agricultural Marketing may grant licence for establishment of private market yard or renew the same.

Private Market Yard shall be of three types, namely.

(i)       'Private market yard licensee develops, manages and controls the yard.

(a)      Private Market Yard where private market yard licensee develops, manages and controls the yard by providing infrastructure facilities such as auction halls, sheds, shops, godowns, storages, pre-cooling, cold storages, raitha bhavan, canteen, ripening chambers, laboratory facilities to evaluate quality of produce, grading and packaging facilities, loading and unloading site, electronic display of market rates, electronic Weighbridges, internal roads, drinking water and sanitary facilities, etc., with an investment, of not less than the amount as specified below excluding the cost of land.

(i)       Rupees ten crores in Bangalore city,

(ii)      Rupees five crores in other district head quarters,

(iii)     Rupees two crores in other places.

(b)      The Land earmarked for establishment of Private Market Yard shall bear a clear title or lease hold right by agreement for a period of not less than ten years with possession. The extent of such land for establishment of a Private Market Yard shall not be less than

(i)       ten acres in respect of City or Town situated in the district headquarters other than Bangalore; and

(ii)      five acres in respect of other places.

(c)      No private market under this rule, except market relating to fruits, vegetables, flowers and such other perishable commodities as may be notified by Government from time to time, shall be established in Bangalore.

(i)       Within a radius of 25 kilometers from the existing market committee; and

(ii)      the extent of land of such private market shall not be less than 50 acres."

(ii)      Private market yard licensee himself takes up buying or selling of notified agricultural produce on wholesale basis.

(a)      Private Market Yards where private market yard licensee himself takes up buying or selling of notified agricultural produce on wholesale basis. For this purpose, necessary infrastructural facilities required for such activity shall have been provided or shall be provided with an investment of not less than the amount specified below including the cost of land.

(i)       Rupees five crores in Bangalore dry

(ii)      Rupees three crores in other district head quarters.

(iii)     Rupees two crores in other places.

(b)      The extent of land for a private market yard under this category shall not be less than the extent as specified below and the land shall bear a clear title or lease hold title agreement for a minimum period of thirty years with a peaceful possession.

(i)       Minimum of three acres of land in the city or town situated in the district head quarters.

(ii)      Minimum of two acres of land in other places.

(iii)     Private Market setup with the assistance from Central or State Government etc. (herein after called Terminal Market).

Private Markets set up with the assistance from Central Government or State Government or fully financed by the private entrepreneurs or on public private partnership model with establishment of main terminal market and collection centers for procurement of notified agricultural produce with a minimum investment of rupees twenty-five crores for the purpose.

(2)     The applicants under the above categories shall specify the place and location of the establishment of private market yards for marketing of notified agricultural produce in market area.

(3)     The licence fees payable for grant or renewal of licence per annum for each categories of private market yards shall be as specified below payable by demand draft in favour of the Director of Agricultural Marketing, Bangalore.

(i)       Bangalore city - Rupees fifteen thousand

(ii)      District Headquarters Rupees five thousand

(iii)     Other places - Rupees two thousand:

Provided that the amount of licence fee paid by the applicant may be refunded if the licence is not granted or renewed for any reason after deducting ten per cent of the fees towards processing cost.

(4)     The Director of Agricultural Marketing shall record the date of receipt of the application in the register maintained in Form 47 and shall evaluate the project report. He may also in consultation with the person/persons as he deemed fit may suggest necessary measures for improving the efficiency of private market yard.

(5)     the Director of Agricultural Marketing on the basis of the evaluation report may within sixty days from the date of submission of application issue.

(i)       A letter of permission for the commencement of the project specifying the period for completion which shall not be more than two years in case of new projects.

OR

(ii)      Refuse to issue permission letter for, the reasons to be recorded in writing and communicated to the applicant.

Further that no letter of refusal under this rule shall be issued unless a reasonable opportunity of being heard is given to the applicant.

(6)     In case of new projects, the applicant shall complete the project within the period specified in such permission letter and if the applicant could not complete the project within the specified period, he may apply to the Director of Agricultural Marketing explaining the reasons for extension of the period. The Director of Agricultural Marketing after inspection of the project may consider extension of time not exceeding one year.

(7)     In case of new projects, after completion of the project and for existing projects at the time of application, the applicant shall give intimation to the Director of Agricultural Marketing. The Director of Agricultural Marketing after inspection and enquiry as are considered necessary and shall by a notification issued under Section 6 of the Act declare the private market yard for the regulation of marketing of notified agricultural produce specified in the notification.

(8)     After the issue of notification under sub-rule (7), the Director of Agricultural Marketing may subject to the provisions of Section 72-C of the Act, grant licence in Form 48 for establishment of a private market yard subject to the conditions specified therein.

(9)     Before commencement of marketing of agricultural produce, the applicant shall deposit an irrevocable and continuous bank guarantee or cash security as specified below or an amount equal to two per cent of the annual turnover of the previous year whichever is more with Director of Agricultural Marketing.

(i)       In Bangalore city - rupees fifty lakhs.

(ii)      In places of district head quarters - rupees twenty-five lakhs.

(iii)     In other places-rupees five lakhs.

Provided that the bank guarantee prescribed under, this rule shall be fifty per cent to the Government organizations and co-operative institutions.

(10)   The private market yard licensee shall submit application for renewal of licence in Form 49 to the Director of Agricultural Marketing. The Director of Agricultural Marketing after making such enquiries as he deemed fit, may renew the licence of the private market yard for marketing of notified agricultural produce.

(11)   The Director of Agricultural Marketing, after giving the applicant an opportunity of being heard, for the reasons to be recorded in writing refuse to grant or refuse to renew the licence to the applicant who is either not solvent or otherwise disqualified under the Act and Rules:

Provided that no order under this sub-rule shall be made unless a reasonable opportunity of being heard is given to the applicant.

(12)   A licence, granted under sub-rule (8) shall, unless renewed remain in force till the end of tenth market year including the year in which it has been granted.

(13)   Every application for renewal of licence shall be made one month before the expiry of its period. The application for renewal of licence if is in accordance with the provisions of the Act and Rules, the applicant shall be deemed to be duly licensed until orders are passed on such application.

(14)   The private market yard licensee who himself is a buyer or any person operating as a buyer in a private market yard shall pay market fee at the rates as specified under Section 65 of the Act.

87-C. Grant of licence for direct purchase of agricultural produce from agriculturists or producers.

(1)     Subject to the provisions of Section 72-A of the Act, any person desiring to purchase agricultural produce directly from the agriculturists or producer-sellers in one or more market areas may submit an application in writing to the Director of Agricultural Marketing in Form 50 for grant of licence, along with the documents specified in that form subject to the following conditions.

(i)       The applicant shall furnish details of direct purchase centers proposed to be opened initially in Form 51. He shall also submit the names of new centers likely to be opened in the course of his business in Form 52 before fifteen days of their opening.

(ii)      The applicant shall submit details of financial status, resources with supportive documents, bank statements, income tax returns, list of permanent assets and liabilities, memorandum and articles of association if it is a company and other documents showing the credibility of the applicant for direct purchase of notified agricultural produce from agriculturists, producer-seller.

(iii)     The applicant shall provide necessary infrastructure facilities for weighment, storage, shelter and other basic facilities as may be specified by the Director of Agricultural Marketing from time to time.

(2)     The licence fees for grant or renewal of licence for establishment of a direct purchase centre shall be Rupees fifty thousand payable by demand draft in favour of the Director of Agricultural Marketing, Bangalore:

Provided that the amount of licence fee paid by the applicant may be refunded if the licence is not granted or renewed for the reasons other than non compliance of requirements of the conditions of licence after deducting ten per cent of the fees towards processing cost.

(3)     The Director of Agricultural Marketing shall record the date of receipt of the application in the register maintained in Form 47 and shall evaluate the proposal. He may also in consultation with the person/persons as he deemed fit suggest necessary measures for improvement of the activities of a direct purchase centre.

(4)     The Director of Agricultural Marketing may after satisfying himself that the arrangements made for purchasing of notified agricultural produce from the agriculturists in the direct purchase centre are sufficient to carry on the activities, grant licence in Form'48 to start business in such centre subject to the conditions specified therein.

(5)     The applicant shall deposit an irrevocable continuous bank guarantee or cash security of Rupees fifty lakhs or ah amount equal to two per cent of the annual turnover of the previous year whichever is more with the Director of Agriculture Marketing:

Provided that the bank guarantee specified under this rule shall 'be fifty per cent' to the Government organizations and co-operative institutions.

(6)     The direct purchase licensee shall do cash and carry business in the direct purchase center and pay the seller in cash or cheque.

(7)     The Direct Purchase Centre licensee shall submit application for renewal of licence in Form 49 to the Director of Agricultural Marketing. The Director of Agricultural Marketing after making such enquiries as he deemed fit, may renew the licence of the Direct Purchase Centre for purchase of notified agricultural produce from agriculturist producer-sellers.

(8)     The Director of Agricultural Marketing after giving the applicant an opportunity of being heard, for the reasons to be recorded in writing refuse to grant, suspend or cancel licence to the applicant

(9)     A licence granted under sub-rule (4) shall, unless renewed remain in force till the end of tenth market year including the year in which it has been granted.

(10)   Every application for renewal of licence shall be made one month before the expiry of its period.. If the application applied for renewal of licence by the applicant is in accordance with the provisions of the Act and Rules, the applicant shall be deemed to be duly licensed until orders are passed on the application.

(11)   Subject to the provisions of the Act, Rules and the directions issued by the Director of Agricultural Marketing from time to time, the direct purchase center licensee shall operate in the area or place for which licence has been granted.

(12)   Direct purchase licensee may sell his produce either in the market established by the market committee or private market yard or sell in retail or process such agricultural produce or may export by value addition through grading, packing etc.

87-D. Grant of licence to establish farmer-consumer market

(1)     Subject to the provisions of Section 72-B and 72-C of the Act, any person desiring to establish a farmer-consumer market in one or more market areas shall submit an application in writing to the Director of immediately Agricultural Marketing or the Officer authorized by him in Form 46 for grant of licence or renewal thereof in Form 49 along with the documents specified in that Form subject to the conditions specified below. The Director of Agriculture Marketing or the Officer authorized by him shall record the date of receipt of such applications in the register maintained in Form 47.

(2)     The Farmer-Consumer Market shall be established on a land with clear title or leasehold title having the lease agreement for a minimum period of five years with a peaceful possession.

(3)     The applicant shall provide infrastructure facilities such as sheds, drinking water facilities, sanitary facilities, roads, storage facilities including stalls for the farmers/growers, shops for ancillary service such as booths for sale of seeds, fertilizers, fruits, vegetable, milk; etc.

(4)     The licence fee for establishing a farmer-consumer market shall be rupees ten thousand.

(5)     The Director of Agricultural Marketing or the Officer authorized by him shall verify the documents submitted by the applicant and after inspection of the proposed farmer-consumer market established by the applicant may grant licence in Form 48 within a period of thirty days from the date of receipt of the applications subject to the conditions specified therein.

(6)     In the farmer-consumer market the farmer or the producer-seller shall not be permitted to sell more than the quantity of notified agricultural produce as may be specified by the Director of, Agricultural Marketing from time to time.

87-E. Procedure for Settlement of disputes.

(1)     Any dispute between the private market yard licensee, direct purchase centre licensee, farmer-consumer market licensee and the market committee, agriculturist, trader, commission agent or a consumer shall be filed in writing by the complainant himself or his authorized representative to the Director of Agricultural Marketing or any subordinate officers authorized by him affixing necessary documents within a period of thirty days from the date of arising the dispute.

(2)     The Director of Agricultural Marketing or any subordinate officers authorized by him shall after giving an opportunity of being heard to the concerned parties and making necessary, enquiry, give his decision within a period of sixty days from the date of receipt of the complaint.

The disputes may also include.

(i)       Dispute regarding the payment to be made to the farmers for the purchase of agricultural produce from him while dealing in the direct marketing or private markets or farmer consumer markets;

(ii)      Dispute as to the jurisdiction (Area of operation).

(iii)     Dispute regarding the weight of agricultural produce, price, charges, fees, taxes, etc.

(iv)    Any other dispute tenable under the Act and the rules made thereunder.

87-F. Power to revoke bank guarantee.

(1)     The cash security or the bank guarantee deposited by the private market yard licensee, direct purchase centre licensee shall be recorded in Form 53 and maintained by the Director of Agricultural Marketing.

(2)     The Director of Agricultural Marketing shall have the power to revoke the bank guarantee furnished by the private market yard licensee, direct marketing licensee in the event of.

(i)       failure to pay the sale proceeds to the agriculturists or producer-sellers or any other dues by the private market licensee or person operating in the private market yard for which they are liable to pay to the agriculturists or producer-sellers.

(ii)      failure to pay the sale proceeds to the agriculturists or producer-sellers or any other dues by the direct purchase licensee for which they are liable.

(3)     The Director of Agricultural Marketing shall have the right to forfeit the whole amount of bank guarantee if the dues to be paid by the licensee to the agriculturists or producer-seller is more than fifty percent of the bank guarantee or if the licensee is continuously in default for more than three times in making payments or if the dues are more than ten per cent of the goods purchased in a month.

(4)     The bank guarantee furnished by the licensee shall be unconditional and the amount guaranteed by the bank or part thereof as the Director of Agricultural Marketing on demand shall be payable. No other kind of bank guarantee shall be accepted.

(5)     Subject to the provision of Act and Rules, the bank guarantee furnished by the licensee to the Director of Agricultural Marketing shall be refundable to him on ceasing to be a licensee if the Director of Agricultural Marketing is satisfied that there are no liabilities due by the licensee either to the agriculturists, producer-sellers market committee or any other person in respect of the transactions for which the bank guarantee is furnished.

(6)     The bank guarantee shall be deemed to be held in trust for the purposes for which it is made and shall not be used for or utilized for any purposes nor it shall be liable for levy of attachment or execution by any court or other authority for any other purposes.

(7)     The licensee shall recoup the bank guarantee within a period of one month from the date of such forfeiture under sub-rule (2) or (3), failing which the licence of the private market yard, direct purchase licensee shall be cancelled.

(8)     The cash security or bank guarantee furnished by the private market yard licensee or the direct purchase licensee shall be deposited in a scheduled bank situated at Bangalore as the licensee may specify. The amount of such security or bank guarantee shall be deemed to have been enhanced to the extent of the interest credited by the bank in respect of the security or guarantee held in deposit.

87-G. Levy of charges, fees by a private market yard licensee and farmer-consumer market licensee.

For the purpose of determining the registration fee and other charges under clause (b) of Section 64-A of the Act and after considering the facilities provided in the above said categories of private market yards and the proposal submitted by the licensee for fixation of the fees and other charges, the Director of Agricultural Marketing shall pass an order to determine the maximum rate of charges to be levied and collected by a private market yard licensee.

87-H. Duties and responsibilities of private market yard licensee, direct purchase centre licensee and farmer-consumer market licensee.

(1)     The private market yard licensee, farmer-consumer market licensee and direct purchase licensee shall.

(i)       frame the operational and working guidelines for the administration and regulation of trading activities in the categories of private market yards, direct purchase centre and farmer-consumer market and shall submit the draft of the same along with the application for licence. Such guidelines shall be in consonance with the provisions of the Act and the rules made thereunder.

(ii)      furnish all the necessary information to the Director of Agricultural Marketing or the Officers authorized by him as he may require in this behalf.

(2)     They shall also be responsible for.

(a)      keeping a copy of the operational and working guidelines open to inspection at its office by the Officers of the Department of Agricultural Marketing at all reasonable times;

(b)      provide information of allotment of shops, godowns, sheds, plots or any other premises only for the purposes of sale and purchase of agricultural produce or such other purpose directly or indirectly connected with the sale and purchase of agricultural produce;'

(c)      maintain a register showing the fees and all other charges collected by them from the sellers and buyers;

(d)      submit periodical reports and annual-reports containing such information as may be directed by the Director of Agricultural Marketing or any Officer authorized by him;

(e)      comply with the method of sale of the agricultural produce permitted by the Director of Agricultural Marketing or the Officer authorized by him as provided under Section 76 of the Act;

(f)       every price quotation made by a trader, buyer or agent in respect of any notified agricultural produce in direct purchase in private market yard shall always be exclusive of the container thereof;

(g)      the direct purchase licensee and the private market yard licensee shall keep regular and proper accounts either manual or on electronic media of every purchase and sale transaction of agricultural produce in a register specified by the Director of Agricultural Marketing in this behalf from time to time;

Explanation. Making entries collectively relating to more than one transaction shall not be deemed to be keeping regular and proper accounts within the meaning of this sub-rule.

(h)     Every trader operating in a private market yard and the direct purchase licensee shall, immediately after weighment or measurement of the agricultural produce, issue a bill in the form as specified in the operational and working guidelines, furnishing details including price of all the agricultural produce purchased or sold by him. The trader operating in a private market shall retain one copy of the bill with himself and submit one copy to the private market yard licensee, one copy to the purchaser or to the seller. The direct purchase licensee shall retain one copy of the bill with himself and give one copy of the same to the concerned Seller;

(i)       The private market yard licensee may grant registration to operate as the traders, commission agents, etc., on such terms and conditions provided in the operational and working guidelines made in this behalf;

(j)       The provisions of the Karnataka Weights and Measures (Enforcement) Act, shall be applicable to the direct purchase center, private market yard and farmer-consumer market yard;

(k)      Immediately after any agricultural produce is weighed or measured in the direct purchase centre or private market yard or farmer-consumer market, the purchaser shall settle the account and pay the seller or his agent, as the case may be, the sale proceeds of the produce so purchased:

Provided that, under no circumstances payment of the Agricultural produce sold shall be withheld by a commission agent or purchaser either on deposit account or personal account or in any other account of a similar nature. The licensee of the private market yard, direct purchase center shall be held responsible for not arranging payment to the farmers, producer-sellers.

(l)       For the purpose of ascertaining that the payment for the agricultural produce sold in the private market yard, direct purchase centre is made to the farmer, producer-sellers as required by these rules, the private market yard licensee or the direct purchase centre licensee shall through it's Officer arrange for the periodical inspection of books of accounts of traders and commission agents operating in the said market center and shall make inquiry, as the case may be.

(m)    The charges payable to a licensed commission agent, broker, weighmen, measurer or surveyor, etc., in respect of his services, in the private market yard and farmer-consumer market as also other market charges if any shall be as may be specified in the operational and working guidelines, subject to the maximum rates as may be determined by the Government or the Director of Agricultural Marketing from time to time;

(n)     No person operating in any direct purchase centre, private market yard or farmer-consumer market shall adulterate any notified agricultural produce or shall cause such produce to be adulterated and it shall be the duty of every direct purchase licence holder, private market yard licensee and farmer-consumer market licensee to take adequate steps including power to take samples of such produce to see that the agricultural produce intended for marketing, processing, storage or export in the market area is not adulterated.

Explanation. For the purpose of this sub-rule, adulteration of agricultural produce is assigned the same meaning as defined under the Prevention of Food Adulteration Act, 1954 (Central Act 37 of 1954).

(o)      The private market yard licensee, direct purchase licensee and farmer-consumer market licensee shall arrange for the storage of agricultural produce brought by the agriculturist, producer-seller when it is not sold or when the producer-seller desires to store the agricultural produce till he obtains better price, in their godowns or godowns of the purchasers or processors or warehouseman. The private market yard licensee and the farmer-consumer market licensee may fix every year, the charges for such storages.

(p)      The private market yard licensee and direct purchase licensee shall declare the details of address of warehouses, godowns, and storage places where agricultural produce have been stocked/stored and shall submit monthly returns to the Director of Agricultural Marketing or the Officer authorized by him.

87-I. Powers of the Director of Agricultural Marketing to make enquiry and inspection.

(1)     The Director of Agricultural Marketing shall have the power to enquire and inspect the affairs of private market yard, direct purchase center and farmer-consumer market, and may authorize any of his subordinate Officer for such enquiry or inspection. An order authorizing inquiry or inspection of Director of Agricultural Marketing or the Officer authorized by him shall, amongst other things contain the following.

(a)      The name of the persons authorized to conduct the inquiry or inspection;

(b)      The name of the direct purchase licence holder, private market yard licence holder and farmer-consumer market licence holder or whose affairs are to be inquired into or whose accounts and records are to be inspected;

(c)      The specific point or points on which an inquiry or inspection is to be made, the period within which the inquiry or inspection is to be completed and report submitted to the Director of the Agricultural Marketing;

(d)      Any other matter relating to the inquiry or inspection of the offices or any person operating in the private market yard, direct purchase center or farmer-consumer market.

(2)     If the inquiry or inspection cannot be completed within the period specified in the order referred to in sub-rule (1), the person conducting the inquiry or inspection shall submit an interim report stating the reasons for not completing inquiry or inspection in time and the Director of Agricultural Marketing may grant such extension of time for the completion of the inquiry or inspection, as he deems necessary or may withdraw the inquiry or inspection from the person to whom it is entrusted and hold the inquiry or inspection by himself or entrust it to such other person as he deems fit.

(3)     On receipt of the order referred to in sub-rule (1), the person authorized to conduct the inquiry or inspection shall proceed to examine the relevant books of accounts and other documents in possession of the direct purchase licence holder, private market licence holder and farmer-consumer market licence holder or any of its Officers, members, agents or servants or any person operating therein and obtain such information or explanation from any such persons in regard to the transactions and working of the respective markets, centers as he deems necessary for the conduct of such inquiry or inspection.

(4)     The person authorized to conduct an inquiry or inspection shall submit the report to the Director of Agricultural Marketing, on all the points mentioned in the order referred to in sub-rule (1) and the report shall contain his findings and the reasons therefore supported by such documentary or other evidences as recorded by him during the course of his inquiry or inspection. The Director of Agricultural Marketing may pass orders of suspension or cancellation of licence as may be considered just and proper:

Provided that before passing an order of suspension or cancellation of licence the Director of Agricultural Marketing shall give the persons including the private Market yard licensee, direct purchase centre licensee or farmer-consumer market licensee reasonable opportunity of being heard.

87-J. Manner of Preferring- Appeals.

A person aggrieved by the * orders of the Director of Agricultural Marketing, may appeal under Section 72-E(1)(b) of the Act, by complying with the following requirements.

(i)       The appeal memo should be in writing and duly signed and verified by the appellant;

(ii)      The certified copy of the decision or order should be accompanied with the appeal memo;

(iii)     The appeal should be properly stamped;

(iv)    The appellant shall, when so required by the appellate authority deposit a sum of money as may be directed by the appellate authority;

(v)      The appeal may be filed personally or through an advocate of the appellant."

Rule - 17. Insertion of new PART VII-B and PART VII-C.

After Rule 91 of the said rules, the following shall be inserted, namely.

 

PART VII-B

Contract Farming

91-A. Registration of Contract Farming Sponsor.

(1)     As provided under sub-section (1) of Section 131-C of the Act, the Contract Farming Sponsor for getting himself registered shall make an application in writing to the concerned Secretary of the market committee where the contract is being entered into which shall be called as the Sponsor Registering Authority in Form 54 along with the documents specified in that Form, with a fee of rupees five hundred per year payable to the concerned market committee.

(2)     On examination of the application made under Sub-rule (1) and after ascertaining the payment of necessary fees for registration, the Sponsor Registering Authority concerned shall record the particulars of such application in the register maintained in Form 55 and dispose of the application within a period of thirty days from the date of receipt of the application and the registration certificate shall be given in Form 56.

(3)     The Contract Farming Agreement between the Contract Farming Producer and the Contract Farming Sponsor shall normally be in Form 57 or Form 57-A. However, the Contract Farming Producer and the Contract Farming Sponsor shall be at liberty to mutually decide the terms and conditions of the Contract Farming Agreement, which shall not be contrary to the provisions of the Act and the Rules and the same shall be informed to the registering authority.

(4)     Contract Farming Sponsor shall submit within fifteen days from the end of the month of execution of agreement, the original copy of the Contract Farming Agreement entered with the Contract Farming Producer for registration to the Secretary of the market committee to be called as Sponsor Registering Authority hereunder who shall acknowledge and record the same in Register maintained in his office in Form 58.

91-B. Purchase of Produce under Contract Farming Agreement.

The Contract Farming Sponsor on purchase of agricultural produce under the Contract Farming Agreement in the market area shall pay market fee as specified under Section 65 of the Act to the concerned market committee.

91-C. Contract Farming Sponsor prohibited from raising permanent structure on Contract Farming Producers land.

Notwithstanding anything contained in the Contract Farming Agreement, the Contract Farming Sponsor is prohibited from raising any permanent structure of any kind or creating any leasehold rights or charge of whatever nature on the land of the Contract Farming Producer

91-D. Objects of Contract Farming Agreement

The Contract Farming Agreement shall be entered by the Contract Farming Sponsor, exclusively, for the purchase of the agricultural produce from the Contract Farming Producer and it shall be construed to mean only as such for all purposes.

91-E Period of Contract Farming Agreement.

The minimum period of Contract Farming Agreement shall be for one crop season and the maximum period shall be as may be mutually decided between the sponsor and the producer which shall not be against the intention of Contract Farming Agreement.

91-F. Recovery of loans and advances given by the Contract Farming Sponsor to the Contract Farming Producer.

Loans and advances if any given by the contract farming sponsors to the contract farming producer shall be recovered only from sale proceeds of the agricultural produce and in no case by sale of the land regarding which the Contract Farming Agreement has been entered into.

91-G. Submission of Annual Accounts by Contract Farming Sponsor.

The Contract Farming Sponsor shall submit annual accounts in Form 59 before 30th June every year, to the Sponsor Registering Authority in respect of all transactions undertaken by him during the previous market year.

91-H. Dispute Settlement Authority of Contract Farming.

(1)     Any dispute arising out of the Contract Farming Agreement Shall be referred for settlement to the disputes committee constituted under Section 84 of the Act, by making an application in writing accompanied with a prescribed court-fee stamp for the purpose of settlement of dispute.

(2)     The Dispute Settlement Authority, after verification of the documents and after giving reasonable opportunity of being heard to the concerned parties shall give its decision within a period of thirty days.

91-I. Appeal against the decision of the Dispute Settlement Authority,

(1)     Any person who is aggrieved by the decision of the Dispute Settlement Authority under Rule 91-H may, within a period of thirty days from the date of such decision, file an appeal before the -Director of Agricultural Marketing accompanied with a specified court-fee stamp and copy of such decision appealed against.

(2)     The appellate authority, after giving reasonable opportunity of being heard to all the concerned parties and after verifying the records and documents, shall decide the appeal within a period of thirty days from the date of receipt thereof and the decision of the appellate authority shall be final.

 

PART VII-C

E-Trading Spot Exchange

91-J. Grant of licence for establishing spot exchange.

(1)     Subject to the provisions of Section 131-D of the Act, any person desiring to establish a Spot Exchange in one or more market areas may submit an application in writing to the Director of Agricultural Marketing in Form 60 for grant of licence along with the documents mentioned in that form subject to the conditions specified below.

(i)       The applicant shall specify the place and location of the proposed establishment of Spot Exchange in the market area.

(ii)      The applicant shall specify the place, location of the proposed establishment of Spot Exchange, the commodities and respective delivery centers in which it proposes to launch spot trading.

(iii)     The applicant shall submit a detailed project report of the Spot Exchange, the amount proposed to be spent for the project, operational and working guidelines as to how the Spot Exchange will be conducted, controlled and operated. The details of settlement guarantee fund to provide guarantee performance of all contracts executed on the spot exchange platform. Facilities proposed to be provided, financial status and resources with supportive documents, viz. Bank statements and income tax returns, list of permanent assets and liabilities, and other documents showing the credibility for establishment of a Spot Exchange.

(2)     The licence fees payable for grant of, licence for each Spot Exchange shall be fifteen thousand by demand draft payable in favour of Director of Agricultural Marketing, Bangalore.

(3)     The Director of Agricultural Marketing may after satisfying himself about the arrangements made in the spot exchange for conducting electronic spot trading in notified agricultural produce, grant licence in Form 61 for establishment of spot exchange subject to the conditions specified therein.

(4)     Before commencement of operation of the Spot Exchange, the applicant shall deposit a bank guarantee worth Rupees twenty-five lakhs.

(5)     The Director of Agricultural Marketing after giving the applicant an opportunity of being heard, for the reasons to be recorded in writing refuse to grant the licence to the applicant who is either not solvent or otherwise disqualified under the Act and Rules:

Provided that no order of refusal under this sub-rule shall be made unless a reasonable opportunity of being heard is given to the applicant.

91-K. Power to revoke bank guarantee.

(1)     The bank guarantee deposited by the spot exchange licensee shall be recorded and maintained by the Director of Agricultural Marketing or the Officer authorized by him.

(2)     The Director of Agricultural Marketing or any Officer authorized by him shall have the power to invoke the bank guarantee furnished by the spot exchange licensee, in the event of failure to pay the sale proceeds to the agriculturists or sellers or any other dues by the spot exchange licensee/or person operating in the spot exchange for which they are liable to pay to the sellers.

(3)     The Director of Agricultural Marketing or any Officer authorized by him shall have right to forfeit the whole amount of bank guarantee if the dues to -be paid by the licensee to the agriculturists, or producer seller is more than fifty per cent of the bank guarantee or if the licensee is continuously in default for more than three times in making payments or if the dues are more than ten per cent of the goods purchased in a month.

(4)     The bank guarantee furnished by the licensee shall be unconditional and the amount guaranteed by the bank or part thereof as the Director of Agricultural Marketing or the Officer authorized by him may demand shall be payable. No other kind of bank guarantee shall be accepted.

(5)     Subject to the provision of this act and rules the bank guarantee furnished by the licensee to the Director of Agricultural Marketing or the Officer authorized by him shall be refundable to him on ceasing to be a licensee, if the Director of Agricultural Marketing or the Officer authorized by him is satisfied that there are no liabilities clue by the licensee either to the agriculturists, producer-seller, market committee or any other person in respect of the transactions for which the bank guarantee is furnished.

(6)     The bank guarantee furnished shall be deemed to be held in trust for the purposes for which it is made and shall not be used for or utilized for any other purposes, nor it shall be liable to attachment in any execution by any court or other authority for any other purposes.

(7)     The licensee shall recoup the bank guarantee within a period of one month from the date of such forfeiture under sub-rule (3), failing which the licence of the spot exchange licensee shall be cancelled.

91-L. Spot exchange licensee to levy charges, fees etc.

(1)     The spot exchange licensee shall be competent to realise market fee as specified under Section 65 of the Act from, the buyers of agricultural produce in the spot exchange and shall remit the same to the concerned market committee within the period as specified in the bye-laws of the market committee.

(2)     It may also collect fees relating to membership, VSAT, annual subscription, etc., from its members.

(3)     Manner of imposition of market fees, transaction charges and other fees.

(a)      In respect of deliveries of notified agricultural produce on which market fee is not already paid, the Spot Exchange shall collect the market fee from the buyer at the rate of seventy per cent of the market fees payable under Section 65(2) of the Act calculated on the basis of official clearing rate on the date of transaction. Spot Exchange shall maintain complete record of such rate of transaction, delivered quantity, market fees applicable, etc.

(b)      The market fee as specified above shall be applicable only in such transactions, which result into deliveries and on which market fee is not already paid earlier.

(c)      The spot exchange will introduce two separate types of contracts for a commodity to be traded, namely.

(1)     Market fee unpaid farmers' produce

(2)     Market fee paid traders' stock

All trade taking place in the Spot Exchange shall be based on physical delivery.

(d)      When a farmer will sell his produce on spot exchange platform, it will be the responsibility of the spot exchange to collect market fee from the buyer and to remit the same to the Market Committee. All such sale transactions will be executed in farmer's produce contracts. In respect of such transactions, spot exchange will maintain complete record of rate of transaction, delivered quantity, market fee applicable, etc.

(e)      When a trader sells his stock on spot exchange, he will sell, the same in Market fee paid traders' stock contracts. Since market fee will not be applicable on such commodities again, spot exchange will maintain a complete check on delivery of such stock and the relevant records relating thereto so as to prove that market fee on such commodity was paid earlier. At the time of delivering such produce in its warehouse, spot exchange will insist for submission of specified form, in Form. No. 62, to be signed by a trader holding concerned Market Committee license.

(f)       In accordance with the procedure specified above, spot exchange will be able to segregate the trades properly and keep track of all transactions, where market fee is required to be collected from the buyer.

(g)      Spot Exchange will issue a certificate as per Form No. 63 about payment of market fee on such goods at the time of discharge of produce from its warehouse. Such certificate shall be kept in the vehicle carrying the goods in the market area. Spot Exchange shall maintain complete record relating to issue of such certificate and the supporting evidence, which can be verified by the Director or any officer authorized by him or concerned Deputy/Assistant Director, Agricultural Marketing or Secretary, Market Committee at any point of time. Such certificate shall be sufficient proof of compliance with market fee, so far as the market committees or authorities are concerned.

(h)     The membership shall be available to all including farmers or their groups/co-operatives/companies. The membership fee for the farmers group/co-operatives shall be decided in consultation with the Director of agricultural marketing.

91-M. Duties and responsibilities of spot exchange licensee.

(1)     The spot exchange licensee shall.

(i)       provide the facilities and services as specified in Section 131-D(4).

(ii)      frame the operational and working guidelines as to how the spot exchange will be conducted, controlled operated and the details of trading, delivery, clearing, settlement, etc. and shall submit the draft of the same along with the application for licence. Such guidelines shall be in consonance with the provisions of the Act and the rules made thereunder.

(iii)     furnish all the necessary information to the Director of Agricultural Marketing or the Officers authorized by him and to the concerned market committee, as he may require in this behalf.

(iv)    the spot exchange licensee shall also be responsible for.

(a)      keepings copy of the operational and working guidelines open to inspection at its office by the Officers of the Department of Agricultural Marketing at all reasonable times.

(b)      maintain records electronically or in a register showing the fees and all other charges collected by them from the sellers and buyers.

(c)      submission of periodical reports and annual reports containing such information as may be directed by the Director of Agricultural Marketing or any Officer authorized by him.

(d)      It shall have transparency in operations and decision making related to entire operations. It shall have system of well organized and capitalized brokerage houses, where members/brokers with reasonable capital adequacy can participate.

(e)      The management running the exchange shall be reliable, effective and impartial and also with experience in handling commodity markets. The ownership/management and members/brokers of exchange shall be separate persons/bodies.

(2)     Every price quotation made by a trader, buyer or agent in respect of any notified agricultural produce on spot exchange shall always be as per the contract specification notified by the Exchange in advance.

(3)     The spot exchange licensee shall keep regular and proper accounts of every e-trading transaction of agricultural produce in an electronic form or in a register

Explanation. Making entries collectively relating to more than one transaction shall not be deemed to be keeping regular and proper accounts within the meaning of this sub-rule.

(4)     The spot exchange licensee shall arrange for the storage of agricultural produce brought by the agriculturist, producer-seller when it is not sold or when the producer-seller desires to store the agricultural produce till he obtains better price, in their godowns or godowns of the purchasers or processors or warehouseman. The spot exchange may fix every year, the charges for such storages.

(5)     The spot exchange licensee shall declare the details of address of warehouses, godowns, and storage places where agricultural produce have been stocked/stored and shall submit monthly returns to the Director of Agricultural Marketing or the Officer authorized by him.

(6)     The spot exchange licensee shall not involve in any misconduct or misconduct or buying or selling of notified agricultural produce on its own account. It shall provide periodical statement regarding total stock of various produce lying in its warehouses located in the State, so that the Government may check and monitor any intention to create artificial scarcity which may lead to rise in prices of such agricultural produce. If the licensee is found to be involved in any act of misconduct or failure in giving details, the Director of Agricultural Marketing shall take immediate legal action for suspending or canceling the licence.

(7)     It shall provide-real time price and trade related information on notified agricultural commodities in the market area, district, state and at national level and shall, as far as possible provide permanent electronic price display board at yards of the market committees in the area of its operation for which the Market Committee shall provide sufficient space, infrastructure, PC, power supply and manpower at its own cost, while the spot exchange shall provide its connectivity, software and real time price information free of cost.

(8)     It-shall ensure delivery of commodities sold by the agriculturists only after full payment by the buyers.

(9)     Seller shall give physical delivery at the Exchange designated warehouse, or the godowns of the farmers which are approved by the spot exchange where grading and quality certification will be done and warehouse receipt will be issued to the agriculturist After obtaining warehouse receipt, he can sell the same on spot exchange platform. In case he has kept his produce at the exchange designated warehouse earlier, he may sell the same any time through any member of the recognized spot exchange and tender warehouse receipt.

(10)   The prices quoted by the buyer shall be net payable to the farmer excluding the market fee, brokerage, charge, etc. The transport cost and other miscellaneous costs delivered at warehouses shall be on the account of buyer and the buyer shall quote only the net payable price to the farmer.

(11)   The Spot Exchange licensee shall grant registration to its members, sub-brokers, franchisees and clients and other market functionaries, which will enable them to deal in agricultural produce at Spot Exchange. If they are registered with the exchange they need not have any licence from concerned market committee. If such members or clients wish to participate in concerned market committee auction or to buy produce directly from agriculturists outside the exchange platform, they have to take relevant licence from concerned market committee,

(12)   It shall not be a mandatory for any agriculturist to be a member to sell his produce on the exchange platform. He will be entitled to sell his produce as a client through a member of exchange.

91-N. Powers of the Director of Agricultural Marketing to make enquiry and inspection.

(1)     The Director of Agricultural Marketing shall have the power to enquire and inspect the affairs of spot exchange licensee and may authorize any of his subordinate Officer for such enquiry or inspection. An order authorizing inquiry; or inspection by Director of Agricultural Marketing or the Officer authorized by him shall, amongst other things contain the following.

(i)       The name of the persons authorized to conduct the inquiry or inspection.

(ii)      The name of the spot exchange licensee whose affairs are to be inquired into or whose accounts and records are to be inspected;

(iii)     The specific point or points on which an inquiry or inspections is to be made, the period within which the inquiry or inspection is to be completed and report submitted to the Director of the Agricultural Marketing.

(iv)    Any other matter relating to the inquiry or inspection of the offices or any person operating in the spot exchange.

(2)     If the inquiry or inspection cannot be completed within the period specified in the order referred to in sub-rule (1), the person conducting the inquiry or inspection shall submit an interim report stating the reasons for not completing inquiry or inspection in time and the Director of Agricultural Marketing may grant such extension of time for the completion of the inquiry or inspection, as he may deem necessary or may withdraw the inquiry or inspection from the person to whom it is entrusted and hold the inquiry or inspection himself or entrust it to such other person as he deems fit.

(3)     On receipt of the order referred to in sub-rule (1) the person authorized to conduct the inquiry or inspection shall proceed to examine the relevant books of accounts and other documents in possession of the spot exchange licensee or any of its Officers, members, agents or servants or any person operating therein and obtain such information or explanation from any such persons in regard to the transactions and working of the respective markets, centers as he deems necessary for the conduct of such inquiry or inspection.

(4)     The person authorized to conduct the inquiry or inspection shall submit the report to the Director of Agricultural Marketing, on all the points mentioned in the order referred to in sub-rule (1) and the report shall contain his findings and the reasons therefor supported by such documentary or other evidences as recorded by him during the course of his inquiry or inspection. The Director of Agricultural Marketing may pass orders of suspension or cancellation of licence as he may consider just and proper, after giving reasonable opportunity of being heard."

Rule - 18. Substitution of Form 35-A.

For the existing Form 35-A of the said rules, the following shall be substituted, namely.

 

"FORM 35-A

[See Rule 74-A(1)]

Permit for transportation of notified agricultural produce

The Agricultural Produce Market Committee,..............

(1)     Name and address of the Trader/Exporter

(2)     Registration No. of the Vehicle/Lorry/Van, etc,

(3)     Purchased from whom with Address.

(4)     To whom transported with Address

(5)     Description of the Agricultural Produce under Transit:

(a)      Name of the Commodity :

(b)      Quantity/Weight

(c)      Value (in Rupees) :

(6)     Whether Market fee paid? Details. (Bill/Receipt No. and Date or) Purchase/Sale Bill No. and Date.

(7)     Duration of the permit in force from hours of the...............day of 200....to.................Hours of.............day of..............200......

I...............declare that the information furnished above are true to the best of my knowledge and belief.

Signature of Trader/Exporter.

Terms and Conditions

(1)     First copy of the transport permit (Original) shall accompany the vehicle in transit. Second copy of the permit shall be submitted within 48 hours of issue to the Secretary of the market committee where the agricultural produce is purchased. Third copy of the transport permit shall be retained by the trader/exporter for his use and the same shall produce for verification if the market committee desires.

(2)     Transport permit shall be shown to enforcement cell officials/other authorized officials and in the check post established in the market area for verification while in transit. The officer/staff who verify the transport permit shall sign and record the designation and time on each permit.

(3)     This permit is valid for one time transportation and cannot be transferred for any reasons.

(4)     The duration time permit should not be modified without any valid reasons."

Rule - 19. Insertion of new Form 35-B.

After Form 35-A of the said rules, the following shall be inserted, namely.

 

"FORM 35-B

[See Rule 74-A]

Agricultural Produce Market Committee

.......................................................

Certificate

This is to certify that the M/s................is a licensed Commission Agent or Trader of this market committee. He has paid the Market Fee of Rs. ..............towards the goods transported vide permit No............on.............vide receipt No................

Secretary

APMC"

Rule - 20. Insertion of new Forms 37-A and 37-B.

After Form 37 of the said rules, the following shall be inserted, namely.

 

"FORM 37-A

[See Rule 76]

Application for obtaining licence for operating in more than one marketing area as a Trader

I/We .................. (Name) .............................................. (Address) ........................(Phone No.)............., am/are making an application for a Licence for operating as a trader in more than one Agricultural Produce Marketing Committee, in the below mentioned market areas. I am ready and willing to pay the necessary licence fee of Rs........... as per rules for obtaining the above mentioned licence.

1.......................................

2.......................................

3.......................................

4.......................................

Along with this application I am enclosing the following documents.

(I)      Solvency Certificate

(II)     Bank Guarantee

DECLARATION

(1)     I/We agree to abide by the Karnataka Agricultural Produce Marketing (Regulation & Development) Act, 1966 and rules made thereunder and amendments made to it from time to time and the directions or orders issued by the Director of Agricultural Marketing, from time to time.

(2)     I/We agree to keep all the necessary records and information about the functioning of our business and to co-operate to produce whatever information and documents will be asked for inspection by appropriate authority.

(3)     I/We agree to pay whatever charges of fees or amounts liable and due from me legally.

(4)     I/We agree to avoid business with the persons doing illegal business and will co-operate in taking legal action against such persons.

Signature of the Applicant.

(1)     Name:

Address:

Signature:

(2)     Name;

Address:

Signature;

 

FORM 37-B

[See Rule 76]

Licence for operating in more than one market area as a Trader

Licence is hereby granted to ..................(Name)..................................(Address).................(Phone No.).................hereinafter referred to as the licensee on payment of fee of Rs. .................for operating in the market areas of.

...................................................

...................................................

...................................................

subject to the provisions of the Karnataka Agricultural Produce Marketing (Regulation & Development) Act, 1966, and the Karnataka Agricultural Produce Marketing (Regulation and Development) Rules, 1968, on the following conditions, namely:-

(1)     The licensee shall abide by the provisions of the said Act and the rules and the conditions of agreement entered into by the licensee on...............with the Director of Agricultural Marketing.

(2)     This licence is not transferable

(3)     This licence may-be suspended or cancelled in accordance with the provisions of the said Act, and the rules made thereunder.

(4)     In the event of suspension or cancellation of this licence, it shall be surrendered to the Director of Agricultural Marketing.

(5)     The licensee shall carry on business as a Trader only and at such places for which the licence is issued and unless the licensee carries on any other business under a licence granted under the said rules, shall not carry on any other business of a market functionary in the market area or in any market therein.

(6)     The licensee shall pay market fees as prescribed in the bye-laws, to the concerned Agricultural Produce Market Committee.

(7)     The licensee shall not adulterate or cause any declared agricultural produce to be adulterated.

(8)     The licensee shall help the Director in preventing evasion of market fees.

(9)     The licensee after grant of licence by Director shall within a period of fifteen days inform about the authorised representative of the licensee who shall be responsible on his behalf.

(10)   The licensee shall maintain books, register and records in the manner, required by the Director and shall make them available for inspection to the Director or person authorised by him.

(11)   The licensee shall furnish information and returns to the Director as may be required by him from time to time.

(12)   The licensee shall settle the price of agricultural produce in the manner provided for under the Bye-laws of the Market Committee and shall issue account slips or purchase bills according to the provisions of the Karnataka Agricultural Produce Marketing (Development and Regulation) Rules, 1968.

(13)   The licensee shall, if the declared agricultural produce is sold through his agency or by him, pay to the seller the price of the agricultural produce so said on the same day.

(14)   The licensee shall not solicit or receive any fee or recover any charges other than those which he is entitled to receive or recover in accordance with the provisions of the Act, and the rules and bye-laws made thereunder.

(15)   The licensee shall not make or recover any trade allowance. "

(16)   The licensee shall provide for authorised weights and measures.

(17)   The licensee shall pay to the licensed weighmen or measurer and hamals as per the provisions of the bye-law.

(18)   The licensee shall inform the Director of any change in the constitution of the licensee.

(19)   The licensee shall refer all his disputes in relation to the marketing of the declared agricultural produce in the manner provided under the Karnataka Agricultural Produce Marketing (Development and Regulation) Act, 1966 and Rules, 1968.

Place-

Date:

Director of Agricultural Marketing Karnataka State.

Renewal of Licence

Director of Agricultural Marketing Karnataka State."

Rule - 21. Insertion of new Forms 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 57-A, 58, 59, 60, 61, 62 and 63.

After Form 45 of the said rules, the following shall be inserted, namely.

 

"FORM 46

[See Rule 87-B(l), S7-D(1)]

Application for grant of licence for establishment private market yard/farmer-consumer market

* * *

From:

To,

The Director Agricultural

Marketing in Karnataka,

Bangalore/Authorized Officer.

Sir,

I/We .................(Name)............. (Address)............(Phone No.) .............am/are making an application for the grant of Licence for establishing private market yard/farmer consumer market. The necessary documents as required under the provisions of the Act and Rules are herewith enclosed. I am/we are ready and willing to pay the necessary licence fee of Rs. ...............as per rules for obtaining the above licence.

I/we request you to grant/renew the licence.

Yours faithfully.

Place:

Date:

(Applicant)

Name:

Firm seal

(Strike out whichever not applicable) Documents submitted with this application.

(1)     Certificate of incorporation or Registration in respect of Company, Co-operative Society/Institution, Trust, Corporation, Partnership, etc.

(2)     Memorandum of Association/Articles of Association and operational and working guidelines of the proposed private market yard, farmer- consumer market.(as applicable)

(3)     Names and full address and telephone number of all the Directors and owners and partners etc. (They shall inform immediately subsequent changes if any).

(4)     Detailed project-report approved/certified copy of the plan of the private market yard, farmer-consumer market purchasing centers. Details of infrastructure created, intended to be created with the break up of the cost including the cost of the land in following table (proof in support of cost shall also be enclosed):

(5)     Financial status of the applicant with supportive document such as bank statements. Income-tax returns, PAN, Assets and Liability statement and its valuation certificate issued by a recognized chartered accountant.

(6)     Documents relating to land including location map, ownership extract, area, title/(In case of leasehold land, lease agreement, possession certificate, etc.) and a certificate of legal practitioner to that effect

(7)     Demand Draft in support of having paid the licence fee.

(8)     Operational and working guidelines as to how private market yard and farmer -consumer market shall be conducted, controlled and operated.

(9)     A Bank guarantee as provided in these rules undertaking and Affidavit that the applicant shall abide by all the provisions of the Act and rules made thereunder and in case of violation he/they shall be liable for legal action including cancellation of licence and recovery of all dues.

(10)   The outlay earmarked for providing facilities for lodging, boarding for the users of market. Laboratory facilities to evaluate and determine the quality of the produce, sanitary, hygienic systems and phytosanitary requirements of the consumers of such produce.

(11)   Applicant shall specify the agricultural produce intended for marketing in the private market yard/farmer-consumer market.

(12)   Any other relevant information/documents that the applicant desires to furnish.

(Applicant)

Name:

Seal;

 

FORM 47

[See Rule 87-B(3), 87-C(3), 87-D(1)]

Register of licence holders for establishment of Private market yard, direct purchase and farmer-consumer market

 

FORM 48

[See Rule 87-B(7), 87-C(4), 87-D(5)]

Grant of Licence for establishment of Private market yard, Direct purchase centers and farmer consumer market.

CERTIFICATE

Licence is hereby granted to .................... (Name) ................ (Address)................(Phone No.)..................(hereinafter referred to as the licensee) on payment of- fee of Rs. .............. for establishment of Private market yard ................. (Category), Direct purchase centers/Farmer-consumer market in the market area of Agricultural Produce Market Committee.................for the marketing of notified agricultural-produce subject to the provisions of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 and Rules, 1968 on the following terms and conditions.

Terms and Conditions:

(1)     The licensee shall abide by the provisions of the Karnataka Agricultural Produce Marketing-(Regulation) Act, 1966 and the rules framed thereunder.

(2)     This licence is not transferable.

(3)     This licence may be suspended or cancelled in accordance with the provisions of the said Act and the rules made thereunder and if the licensee commits any act or abstains from carrying out his normal business in the market/yard with the intention of willfully obstructing, suspending or stopping the marketing of agricultural produce in the market area, the licence may be suspended or cancelled. -

(4)     In the event of suspension or cancellation of this licence, it shall be surrendered to the Director of Agricultural Marketing or the Officer authorized by him.

(5)     The licensee shall not adulterate or cause any notified agricultural produce to be adulterated.

(6)     The licensee shall help and comply with the directions issued by the Commissioner/Director/Authorized Officer in preventing evasion of market fees.

(7)     The licensee after grant of licence by the Director of Agricultural Marketing or the Officer authorized by him shall within a period of fifteen days inform about the authorized representative of the licensee who shall be responsible on his behalf.

(8)     The licensee shall maintain books, registers and records in respect of the agricultural produce in the manner, required by the Director of Agricultural Marketing or any person authorized by him.

(9)     The licensee shall furnish information an returns to the Director of Agricultural Marketing or the Officer authorized by him as may be required by him from time to time.

(a)      Sale and purchase of agricultural produce shall be as specified in Section 76 of the Act.

(b)      Direct purchase centre licensee shall display the price of commodity at the place where he will purchase on a particular day.

(10)   The licensee shall, if notified agricultural produce is sold through his agency or by him, pay to the seller the price of the agricultural produce so sold on the same day by cash or cheque as the case may be.

(11)   The licensee shall not solicit or receive any fees or recover any charges other than those which he is entitled to receive or recover in accordance with the provisions of the Act and the rules.

(12)   The licensee shall not make or recover any trade allowance other than those prescribed.

(13)   The licensee shall provide for authorized weights and measures.

(14)   The licensee shall pay to the measurer and hamals, etc, at the rates approved by the Director of Agricultural Marketing.

(15)   The licensee shall inform the Director of Agricultural Marketing any change in the constitution of the licensee.

(16)   The licensee shall refer all disputes in relation to the marketing of the notified agricultural produce in the manner provided under Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 and Rules, 1968 as are applicable.

(17)   The licensee shall not involve in any misconduct or illegal stocking of notified agricultural produce for a long period with an intention to create artificial scarcity which leads to price rise.

(18)   In case the licence issued is defaced, misplaced, torn, lost or accidentally destroyed, etc., a duplicate licence on payment of Rs. 100.00 may be issued.

(19)   The licence granted under this certificate unless renewed remains in force till the end of tenth market year including the year in which it has been granted.

Place:

Date:

Director of Agricultural

Marketing.

 

FORM 49

[See Rule S7-B(9), 87-C(7), 87-D(1)]

Application Form for the renewal of licence of private market yard/direct purchase centre/farmer consumer market under Section 72-C

To

The Director of Agricultural Marketing/Authorized Officer,

Sir,

I request for the renewal of my Licence. The necessary particulars are given below.

(1)     Particulars of the private market yard/direct purchase centre/farmer-consumer market for which the Licence has been granted.

(2)     Name of the applicant (with full particulars of the place of market yard)

(3)     No. of licence

(4)     Date on which the Licence expires

(5)     Period for which renewal is required

(6)     The amount- of Bank guarantee/cash security deposited with the licensing authority.

(7)     Has the applicant(s) or where the applicant is a firm, has any member thereof singly or in collaboration with anybody else, been.

(a)      Granted any licence in any other market area and his licence has been suspended or cancelled. If so, when, where, for what period and for what reasons;.............or

(b)      Convicted of any offence involving moral turpitude. If so the date of conviction;..............or

(c)      Declared as a undischarged insolvent...........................

(d)      Defaulter of not paying the dues to the market committee/seller/agriculturist/producer-seller.................

(1)     I am enclosing a demand draft No..........dated........amounting to Rs.................on account of renewal fee.

(2)     The particulars given above are true and correct to the best of my knowledge and belief.

Dated.............

Signature of the applicant.

 

FORM 50

[See Rule 87-C(1)]

Application for obtaining licence for direct purchase of agricultural produce

From:

To:

The Director

of Agricultural Marketing/Authorized Officer.

Sir,

I/We ............. (Name) ............... (Address) ................ (Phone No.) ..................am/are making an application for a Licence for direct purchase of agricultural produce from the Agriculturists/producer-seller in the below mentioned market areas. I am/We are ready and willing to pay the necessary licence fee of Rs..............as per rules for obtaining the above mentioned licence.

Yours faithfully,

(Applicant)

Name;

Firm

seal:

Along with this application Lam/We are enclosing the following necessary documents as required under the Act and Rules.

Documents submitted with application.

(1)     Solvency Certificate.

(2)     Bank Guarantee.

(3)     Details of Registration Documents of the Applicant (e.g. Company/Partnership Firm/Non" Government Organization/Cooperative Society/Institutions/Government Organization, etc.

(4)     Names and addresses of their Directors, Partners, etc.

(5)     Income tax return.

Declaration

(1)     I/We agree to abide by the Karnataka Agricultural Produce Marketing (Development and Regulation) Act, 1966 and the rules made thereunder and, amendments made and the directions and orders issued by the Director of Agricultural Marketing, or the Officer authorized by him from time to time.

(2)     I/We agree to keep all the necessary records and information about the functioning of our business and to co-operate to produce or seller whatever information and documents will be asked for inspection by appropriate authority.

(3)     I/We agree to pay whatever charges or fees or amount liable and due from me/us legally.

(4)     I/We agree to avoid business with persons doing illegal trade/business and will co-operate in taking legal action against such persons.

(5)     I/We agree to pay the sale proceeds immediately to the farmer/producer-seller.

Signature of Applicant

Seal

(1)     Name:

Address:

Signature:

 

FORM 51

[See Rule 87-C(1)(i)]

Name of places to open direct purchase centers initially

From:

To:

The Director of Agricultural Marketing, /Authorized Officer.

Sir,

I/We are submitting herewith the names of places where direct purchase centers to be opened immediately after obtaining licence.

Date:

Place:

Signature

Seal

 

FORM 52

[See Rule 87-C(1)(i)]

Name of centers to be opened by direct marketers for purchase of agricultural produce after obtaining licence

From:

To:

The Director

of Agricultural Marketing, /Authorized Officer.

Sir,

I/We are submitting herewith the names of places where direct purchase centers likely to be opened within fifteen days from this letter.

Date:

Place:

Signature

Seal

 

FORM 53

[See Rule 87-F(1)]

Register for recording the details of cash security/bank guarantee

 

FORM 54

[See Rule 91-A(1)]

Application for Registration as Contract Farming Sponsor

To,

................................................

................................................

Sir,

I/We........................(Name) (Address) (Phone No.) ..................., am/are making art application for a registration as Contract Farming Sponsor for the period from ...................to..............., i.e. ..................years. I/We want the registration for the market area of the APMC......................

Along with this application I am enclosing the following documents

(I)      Solvency certificate.

(II)     Bank Guarantee.

(III)   Details of Registration Documents of Company/Partnership Firm'/Non-Governmental Organizations/Co-operative Society/Government Organization, etc. and names and addresses of directors and partners, etc.

(IV)   Details of agricultural produce coming under the contract.

(V)     Copy of challan by which fee of rupees five hundred per year per district has been paid in Government Treasury.

(VI)   Income tax return.

Signature of the Applicant.

 

FORM 55

[See Rule 94-A(2)]

Register of Contract Farming Sponsor

 

FORM 56

[See Rule 91-A(2)]

Registration of Contract Farming Sponsor

To

.................................

.................................

Sub: Registration as Contract farming sponsor

Sir,

With reference to your Application, Mo..................... dated...............on, above cited subject, it is informed that your application for Registration has been accepted vide Registration No................ dated ...........'..'.

The registration is for the period.....................to.................for operating in the market area of APMC........................

The condition of registration is given below.

(1)     The registration holder shall comply with the provisions of the Act, Rules and instructions issued in this behalf.

(2)     The registration holder shall comply with the terms and conditions given in the contract.

Signature of the registering authority

Date:

Place:

 

FORM 57

[See Rule 91-A(3)]

Agreement for Contract Farming

THIS AGREEMENT is made and entered into, at ................. on the................. day of .............., between................ age ................... residing at ......................., herein after called the party of the First part (which expression shall unless repugnant to the context or meaning thereof mean and include his heirs, executors, administrators and assigns) of the one part, and M/s......................a Pvt./Public Limited Co. incorporated under the provisions of Companies Act 1956 and having its registered office at...................herein after called the party of the Second part (which expression shall unless repugnant to the context or meaning thereof mean and include its successors and assigns) of the other part.

WHEREAS the party of the First part is the owner/cultivator of the agricultural land bearing the following particulars.

AND WHEREAS, the party of the Second part is trading in agricultural produce and also providing technical know-how in respect of land preparation, nursery, fertilization, pest management, irrigation, harvesting and alike things.

AND WHEREAS the party of the Second part is interested in the items of the agricultural produce more particularly mentioned in Schedule-I hereto annexed and at the request of the party of the Second part, party of the First part has agreed to cultivate and produce the items of agricultural produce mentioned in the Schedule-I hereto annexed.

AND WHEREAS the parties hereto have agreed to reduce in writing the terms and conditions in the manner hereinafter appearing.

NOW, THESE PRESENCE WITNESSTH AND'IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:

Clause 1:

The party of the First part agrees to cultivate and produce and deliver to the party of the Second part and the party of the Second part agrees to buy from the party of the first part the items of the agricultural produces. Particulars of the items, quality, quantity and price of the items are more particularly mentioned in the Schedule I hereto annexed.

Clause 2:

The agricultural produce particulars of which are mentioned in the Schedule-I hereto will be supplied by the party of the First part to the party of the Second part within.................months/years from the date hereof.

OR

it is expressly agreed between the parties hereto that this agreement is for agricultural produce particulars of which are described in Schedule-I hereto and for a period of..................months/years and after the expiration of said period, this agreement will automatically come to an end.

Clause 3:

The party of the First part agrees to cultivate, produce and supply quantity mentioned in the Schedule-I hereto annexed to the party of the Second part.

Clause 4:

The party of the First part agrees to supply the quantity contracted according to the quality specifications stipulated in Schedule-I. If the agricultural produce is not as per the agreed quality standards, the party of the Second part will be entitled to refuse to take the delivery of the agricultural produce only on this count. Then

(a)      The party of the First part shall be free to sell the produce to the party of the Second part at a mutually renegotiated price

OR

(b)      In open market (to bulk Buyer viz., exporter/processor/manufacturer, etc.) and if he gets a price less than the price contracted, he will pay to the party of the Second part, for his investment proportionately less

OR

(c)      In the market yard and if the price obtained by him is less than contracted price, then he will pay to the party of the second part, for his investment proportionately less.

In the event the party of the Second part refuses/fails to take the delivery of the contracted produce for his own reasons then the party of the First part will be free to sell the produce in the open market and if the price received is lower than the contracted price the difference will be on account of the party of the Second part and the party of the second part shall pay the said difference to the party of the First part within a period of............. days from ascertaining the said difference.

Clause 5:

The party of the First part agrees to adopt instructions/practices in respect of Land preparation, nursery, fertilization, pest management, irrigation, harvesting and any other, as suggested by the party of the Second part from time to time and cultivate and produce the items as per specifications mentioned in the Schedule-I hereto.

Clause 6:

It is expressly agreed by and between the parties hereto that buying will be as per the following terms and buying slips will be issued immediately after the purchase.

It is further agreed that it will be the responsibility of the party of the Second part to take possession of the contracted produce at the delivery point agreed after it is offered for delivery and if he fails to take delivery within................period then the party of the First part will be free to sell the agriculture produce contracted as under:

(a)      In the open market (bulk buyer viz. exporter/processor/manufacturer, etc.), and if he gets a price less than the price contracted, he will pay to the party of the Second part for his investment proportionately less.

(b)      In the market yard, and if the price obtained is less than the contracted price then he will return proportionately less to the party of the Second part for his investment. It is further "agreed that the quality maintenance in transit will be the responsibility of the party of the Second part and the party of the First part shall not be responsible or liable for the same.

Clause 7:

The party of the Second part shall pay to the party of the First part the price/rate mentioned in Schedule-I when his crop has been harvested and delivered to the party of the Second part after deducting all outstanding advances given to the party of the First part by the party of the Second part. The following schedule shall be followed for the payment.

Clause 8:

The parties hereto shall insure the contracted produce mentioned in Schedule-I hereto, for the period of....................against the risk of losses due to acts of God, destruction of specified assets, loan default and production and income loss and all other acts or events beyond the control of the parties, such as very low production caused by the serious outbreak of a disease, epidemic or by abnormal weather condition, floods, drought, hailstorm, cyclones, earthquakes, fire or other catastrophes, war, acts of Government, action existing on or after the effective date of this agreement which prevent totally or partially the fulfillment of the obligation of the farmer. Upon request the party of the First part invoking such acts shall provide to the other party confirmation of the existence of facts. Such evidence shall consist of a statement of certificate of the appropriate Governmental Department. If such a statement or certificate cannot reasonably be obtained, the party of the First part claiming such acts may, as substitute, thereof, make a notorial statement describing in details the facts claimed and the reasons why such a certificate or statement confirming the existence of such facts cannot be issued. Alternatively, subject to the mutual agreement between the two parties, the party of the First part may fill his quota of the produce through other sources and the loss suffered by him thereby due to price difference, shall be shared equally between the parties, after taking into account the amount recovered from the insurance company. The insurance premium shall be shared equally by both the parties.

Clause 9:

The party of the Second part hereby agrees to provide following services to the party of the First part during the period of cultivation and post harvest management:

1.

2.

3.

4.

Clause 10:

The party of the Second part or it's representatives agrees to have regular interactions with the farmers forum set up/named by the party of the First part during the period of contract.

Clause 11:

The party of the Second part or it's representatives at their costs shall have the right to enter the premises/fields of the party of the First part to monitor farming practices adopted and the quality of the produce from time to time.

Clause 12:

The party of the Second part confirms that he has registered himself with the Sponsor Registering Authority ..................on................and shall pay the fees in accordance with the law prevailing in this regard to the Sponsor Registered Authority which has jurisdiction to regulate the marketing of agriculture produce which is cultivated on the land described.................. OR The party of the Second part has registered himself on................. with Sponsor Registering Authority (single point) namely ........................prescribed by the State in this regard. The fees levied by the respective Sponsor Registering Authority shall be borne by the party of the Second part exclusively and will not be deducted in any manner, whatsoever, from the amounts payable to the party of the First part.

Clause 13:

The party of the Second part will have no rights whatsoever as to the Title, Ownership, Possession of the land/property of the party of the First part nor will it in any way alienate the party of the First part from the land property particularly nor mortgage. Lease, sub-lease or transfer the land property of the First party in any way to any other person/institution during the continuation of this agreement.

Clause 14:

The party of the Second part shall submit true copy of this agreement signed by both the parties within a period of 15 days from the date of execution thereof with the..................market committee/Sponsor Registering Authority as required by the APMR Act/any other registering authority prescribed for the purpose.

Clause 15:

Dissolution, Termination/Cancellation of the Contract will be with consent of both the parties. Such dissolution or termination/cancellation deed will be communicated to the registering authority within 15 days of such dissolution, termination/cancellation.

Clause 16:

In the event of any dispute or difference arising between the parties hereto or as to the rights and obligations under this agreement or as to any claim, monetary or otherwise of one party against the other or as to the interpretation and effect of any terms and conditions of this agreement, such dispute or difference shall be referred to disputes committee constituted under the Rules.

Clause 17:

In case of change of address of any party to this agreement, it should be intimated to the other party and also to the Sponsor Registering Authority.

Clause 18:

Each party hereto will act in good faith diligently and honestly with the other in the performance of their responsibilities under this agreement and nothing will be done to jeopardize the interest of the other.

In witness whereof the parties have signed this agreement on the ..............day, .................month and...............year first above mentioned.

SIGNED, SEALED AND DELIVERED by the)

with in named PARTY OF THE FIRST PART')

in the presence of.................)

1.....................................................................)

2.................................)

SIGNED, SEALED AND DELIVERED by the)

With in named PARTY OF THE SECOND PART)

in the presence of...................)

1................................)

2.....................................)

 

Schedule

Agricultural Produce, Grade, Specification, Quantity and Price Chart

 

FORM 57-A

[See Rule 91-A(3)]

Agreement for Contract Farming

Agreement Between

Sri..................S/o..................... R/o..................Village.....................Taluk .................District...................hereinafter referred to as contract farming Producer or simply Producer

AND

(1)     M/s.........................Address................... Hereinafter referred to as contract farming Sponsor or simply Sponsor. We, the above said contract farming Producer and contract farming Sponsor mutually agree on the following terms and conditions for production and purchase and sale of ............. (Commodities). The Producer owns/taken on lease an, extent of Acres of land in Survey No..................... of ................. Village..................Taluk.................District...................

(2)     The Producer agreed to produce................... (Commodity) required by the sponsor during....................Season of.................(year/years)

(3)     The sponsor agreed to provide the services with service charge specified hereunder/for production of the said commodity/commodities by the Producer. The Producer agreed to recover the service charges from the sale proceeds payable to him.

(4)     The sponsor agreed to purchase the commodity conforming to specifications at the rates explicitly given hereunder.

(5)     The sponsor cannot demand damages if the produce harvested does not conform to the specifications and quantity agreed upon.

(6)     The sponsor has agreed to purchase the entire quantity/.....quintals produced by the Producer at the rate/s as at clause 4 above.

(7)     The Producer has agreed to deliver the agreed quantities of commodities first to the sponsor and if and only if there is any left over quantity, he is at liberty to dispose of the commodities to others.

(8)     The Sponsor has agreed to take delivery of the commodity at the farm/villages after weighment and payment by incurring all expenditure incidental therefor, like handling, weighment, cost of containers, etc.

(9)     The sponsor has agreed not to refuse to take delivery of the quantity of produce conforming to specifications given at clauses 6 and 4 above.

(10)   The sponsor has agreed to give a third party guarantee in the form of bank guarantee for the entire value of the contract agreement.

(11)   In case the Producer sells the produce to any other person in violation of the terms of the agreement, the sponsor may approach the Market Committee for redressal. Market Committee shall proceed against the Producer including attachment of stocks and properties belonging to the Producer.

(12)   The Sponsor can claim the loss suffered by him for breach of agreement by the Producer.

(13)   In case the Sponsor fails to take delivery of the produce, the Producer can ask Market Committee to recover the loss sustained by him from the bank guarantee furnished by the sponsor.

(14)   Any dispute arising out of this agreement shall be resolved as per sub-sections (4) of Section 131-C of The Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966.

(15)   The agreement ceases to be in force on.................(Date).

 

FORM 58

[See Rule 91-A(4)]

Register for Registration of Contract Farming Agreement

 

FORM 59

[See Rule 91-1]

Form of Annual Accounts of Contract Farming Sponsor

 

Signature of Contract Farming Sponsor.

 

FORM 60

[See Rule 91-1(1)]

Application for grant of licence for establishment of Spot Exchange

From:

To,

The Director Agricultural Marketing in Karnataka, Bangalore.

Sir,

I/We .......................... (Name) .................... (Address) .........................(Phone No.)_____.....am/are making an application for the grant of Licence for establishing Spot Exchange. The necessary documents as required under the provisions of the Act and Rules are herewith enclosed. I am/we are ready and willing to pay the necessary licence fee of Rs.....................as per rules for obtaining the above licence.

I/We request you to grant/renew the licence.

Yours faithfully,

Place:

Date:

(Applicant)

Name:

Firm seal

(Strike out whichever not applicable)

Documents submitted with this application.

(1)     Certificate of incorporation or Registration in respect of Company; Co-operative Society/Institution, Trust, Corporation, Partnership, etc.

(2)     Memorandum of Association/Articles of Association, etc.

(3)     Names and full address and telephone number of all the Directors and owners and partners, etc. (They shall immediately inform subsequent changes if any).

(4)     Detailed project-report of the proposed Spot Exchange, amount proposed to be spent for the project, operational and working guidelines as to how the Spot Exchange will be conducted, controlled and operated, the details of settlement guarantee fund to provide guarantee performance of all contracts executed on the spot exchange platform and the facilities proposed to be provided, financial status and resources with supportive documents, three years bank statements and income-tax returns, list of permanent assets and liabilities, memorandum and articles of association of the company and other documents showing the credibility of the applicant for establishment of a Spot Exchange as per the following table:

(5)     Financial status of the applicant with supportive document such as bank statements. Income-tax returns, PAN, Assets and Liability statement and its valuation certificate issued by a recognized chartered accountant.

(6)     Demand Draft in support of having paid the licence fee.

(7)     An undertaking and Affidavit to the effect that the applicant shall abide by all the provisions of the Act and rules made thereunder and in case of violation he/they shall be liable for legal action including cancellation of licence and recovery of all dues.

(8)     Applicant shall specify the agricultural produce intended for marketing in the Spot Exchange.

(9)     Any other relevant in formation/documents that the applicant desires to furnish.

(Applicant)

Name:

Seal:

 

FORM 61

[See Rule 91-J(3)]

Grant of Licence for establishment of Spot Exchange

CERTIFICATE

Licence is hereby granted to....................(Name) ...................(Address)..................(Phone No.)...................(hereinafter referred to as the licensee) on payment of fee of Rs...............for establishment of Spot Exchange in the State of Karnataka for conducting and facilitating e-trading in notified agricultural produce subject to the provisions of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 and Rules, 1968 on the following terms and conditions.

Terms and Conditions

(1)     The licensee shall abide by the provisions of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 and rules framed thereunder.

(2)     This licence is not transferable.

(3)     This licence may be suspended or cancelled in accordance with the provisions of the said Act and the rules made thereunder and if the licensee commits any act or abstains from carrying out his normal business in the market/yard with the intention of willfully obstructing, suspending or stopping the marketing of agricultural produce in the market area, the licence may be suspended or cancelled.

(4)     In the event of suspension or cancellation of this licence, it shall be surrendered to the Director of Agricultural Marketing.

(5)     The licensee shall help and comply the directions issued by the Commissioner/Director in preventing evasion of market fees.

(6)     The licensee after grant of licence by the Director of Agricultural Marketing shall within a period of seven days inform the Director and the market committees concerned about the authorized representative of the licensee who shall be responsible on his behalf.

(7)     The licensee shall maintain books, registers and records in respect of the e-trading of the agricultural produce in the manner, required by the Director of Agricultural Marketing.

(8)     The licensee shall furnish information and returns to the Director of Agricultural Marketing or the Officer authorized by him and to the APMC concerned as may be required by him from time to time.

(9)     The licensee shall not solicit or receive any fees or recover any charges other than those which he is entitled to receive or recover in accordance with the provisions of the Act and the rules.

(10)   The licensee shall provide for authorized weights and measures.

(11)   The licensee shall inform the Director of Agricultural Marketing any change in the constitution of the licensee.

(12)   Redressal of dispute's shall be in accordance with Section 131-G of the Act.

Place:

Date:

Director of Agricultural

Marketing.

 

FORM 62

[See Rule 91-L]

Certificate to be given in case a Trader delivers Market Fee Paid goods to Spot Exchange warehouse

DELIVERY SLIP

 

(a)      In case of farmer purchase (original procurement by the trader)

I hereby solemnly declare and undertake that I have delivered the abovementioned commodities on which, the requisite market fees and other charges as applicable under the Karnataka Agricultural Produce Marketing (Regulation) Act, 1966 have been deposited with the concerned market committee/will be deposited with the concerned market committee on the due date and payment of sale proceeds has been made to the agriculturist seller.

The above mentioned sale is against the following purchase from farmer:

Date of purchase from the Farmer/Auction

Market fee applicable on such purchase:

OR

(b)      In case of purchase from concerned market committee licensed trader.

I hereby solemnly declare and undertake that I have delivered the above mentioned commodities, which were procured by me from a registered APMC Trader as detailed below and I have complete record of such purchase along with the relevant Bill of purchase in my record.

·               Bill Number

·               Date of purchase from licensed concerned market committee trader.

·               licence No. of. concerned market committee trader from whom such commodities were purchased.

I further certify that both the purchase and sale stated above, form part of my purchase and sales records and books of accounts.

Signature of the Trader licence No.

 

FORM 63

[See Rule 91-L]

Certificate of Market Fee Paid Notified Agricultural Produce

DELIVERY SLIP

(To be issued by Spot Exchange)

Delivery Center

Name of Market Yard:

Serial No........................

Name of Selling Member Registration/licence No.:

Name of Buying Member Registration/licence No.:

We hereby certify that the following deliveries have been lifted from our warehouse located at................., which is in...............Market area, and the complete details of payment of market fee and name of the original trader along with his licence number, who has delivered originally and is responsible for payment of market fee on such goods are maintained with us, which can be verified from our records. We have delivered the below mentioned commodities to the person named below:

Signature of the Warehouse Manager

Name of the Spot Exchange

Phone No.:

Address: