No: 20 Dated: May, 26 2005

THE HIMACHAL PRADESH AGRICULTURAL AND HORTICULTURAL PRODUCE MARKETING (DEVELOPMENT AND REGULATION) ACT, 2005

 (ACT NO. 20 OF 2005)

    An Act to re-enact the law to provide for improved regulation in marketing of agricultural produce, development of efficient marketing system, promotion of agri-processing and agricultural exports, establishment and proper administration of markets for agricultural produce in the State of Himachal Pradesh and to ensure level playing field for competitive markets to operate through setting of minimum standards for facilities, procedures and systems, thereby promoting the establishment of well administered and efficient infrastructure for marketing of agricultural produce in and from the State of Himachal Pradesh.

BE it enacted by the Legislative Assembly of Himachal Pradesh in the Fifty- sixth Year of the Republic of India, as follows: -

CHAPTER-I

PRELIMINARY

1. Short title.- This Act may be called the Himachal Pradesh Agricultural and Horticultural Produce Marketing (Development and Regulation) Act, 2005.

2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,-

(a) “agricultural produce” means all produce and commodities, whether processed or unprocessed of agriculture, horticulture, apiculture, sericulture, livestock and products of live stock, fleeces (raw wool) and skins of animals, forest produce and fisheries as are specified in the Schedule to this Act or declared by the Government by notification under section 19 of this Act, and also includes a mixture of two or more than two such products;

(b) “agriculturist” means a person who is a bonafide Himachali and owns and possesses land in Himachal Pradesh and who is engaged in production of agricultural produce by himself or by hired labour or otherwise, but does not include any market functionary;

(c) “Board” means the Himachal Pradesh State Agricultural Marketing Board established under section 3 of this Act;

(d) “business” means purchase, sale, processing, value addition, storage, transportation and connected activities of agricultural produce;

(e) “buyer” means a person, a firm, a company or a Cooperative Society or Government Agency, Public Undertaking/ Public Agency or Corporation, commission agent, who himself or on behalf of any other person or agent buy or agrees to buy agricultural produce in the notified market area;

(f) “bye-laws” means the bye-laws made by the Board for the Committee under section 84 of this Act;

(g) “Chairman” means Chairman of the Board;

(h) “commission agent” means a person who on behalf of his principal trader and in consideration of a commission or percentage on the amount involved in such transaction buys agricultural produce and makes payment, keeps it in his custody and delivers it to the principal trader in due course or who receives and takes in his custody agricultural produce sent for sale within the market area or from outside the market area, sells the same in the market area and collects payment thereof from the buyer and remits the sale proceeds to his principal trader;

(i) “Committee” means an Agricultural Produce Market Committee established under section 29;

(j) “contract farming” means farming by a person called “Contract Farming Producer” under a written agreement with another person called “Contract Farming Sponsor” to the effect that his farm produce shall be purchased as specified in the agreement;

Explanation.- “Contract Farming Producer” means an individual agriculturist or an association of agriculturists by whatever name called registered under any law for the time being in force;

(k) “Contract Farming Agreement” means the agreement made for a specific period for contract farming between Contract Farming Sponsor and Contract Farming Producer;

Explanation.-“contract farming sponsor” means a sole proprietor, a company registered under the Companies Act, 1956, a partnership firm registered under the Partnership Act, 1932, a Government Agency, Cooperative Societies registered under the Himachal Pradesh Cooperative Societies Act, 1968, and shall include its administrators, successors, representatives and assignees;

(l) “Cooperative Society” means a Cooperative Society of producers registered under the provisions of the Himachal Pradesh Cooperative Societies Act, 1968, which deals in the purchase, sale, processing, or storage of agricultural produce, or is otherwise engaged in the business of disposal of agricultural produce;

(m) “export” means dispatch of agricultural produce outside India;

(n) “exporter” means a person who exports agricultural produce;

(o) “e-trading” means trading in which billing, booking, contracting, negotiating, information exchange, record keeping and other connected activities are done electronically on computer network/ internet;

(p) “hamal” means a labourer, hamal or coolie engaged for daramaking, loading, unloading, filling, stitching, emptying or carrying any agricultural produce in the notified market area;

(q) “import” means bringing agricultural produce from outside India;

(r) “importers” means person who imports agricultural produce from outside India;

(s) “license” means license granted under this Act;

(t) “licensee” means a person or association, firm, company, public sector undertaking or society holding a license issued under this Act;

(u) “market” means a market established under section 19 of this Act which includes market area, market yard/ sub yards and principal market yard;

(v) “market area” means area notified under section 19 of this Act;

(w) “market charges” includes charges on account of or in respect of commission, brokerage, weighing, measuring, hammaling (loading, unloading or carrying), cleaning, drying, sieving, stitching, stacking, hiring, gunny bags, stamping, bagging, storing, warehousing, grading, surveying, transporting and processing;

(x) “market functionary” means a trader, a commission agent, buyer, hamal, processor, a stockiest, and any other person as may be declared by the State Government, by notification, to be a market functionary;

(y) “market yard” in relation to a market area means a specified place and includes any enclosures, buildings or locality declared as such in any market area by the State Government by notification;

(z) "member" includes the Chairman, of the Board;

(za) “marketing” means all activities involved in the flow of agricultural produce from the production points commencing from the stage of harvest till these reach the ultimate consumers, viz, grading, processing, storage, transport, channels of distribution and all other functions involved in the process;

(zb) “notification” means notification issued under this Act and published in the Official Gazette;

(zc) “notified agricultural produce” means any agricultural produce notified under section 19 of this Act;

(zd) “person” shall include any company or association or body of individuals, whether incorporated or not;

(ze) “producer” means a person, who in his normal course of avocation, grows, manufactures, rears or produces, as the case may be, agricultural produce personally, through tenants or otherwise, but does not include a person who works as a trader or a broker or who is a partner of a firm of traders or brokers is otherwise engaged in the business of disposal or storage of agricultural produce other than that grown, manufactured, reared or produced by himself through his tenants or otherwise: Provided that no person shall be disqualified from being a producer merely on the ground that he is a member of a Cooperative Society;

Explanation,– The term “producer” shall also include tenant;

(zf) “prescribed” means prescribed by rules made under this Act;

(zg) “processing” means any one or more of a series of treatments relating to powdering, crushing, decorticating, dehusking, parboiling, polishing, ginning, pressing, curing, cleaning, or any other manual, mechanical, chemical or physical treatments to which raw agricultural produce or its product is subjected to;

(zh) “processor” means a person who undertakes processing of any notified agricultural produce on his own accord or on payment of a charge;

(zi) “private market yard” means such place other than the market yard/ sub market yard in the market area where infrastructure has been developed and managed by a person for marketing of notified agricultural produce holding a licence for this purpose under this Act;

(zj) “registration” means registration done under this Act;

(zk) “regulation” means regulations made by the Board under section 85 of this Act;

(zl) “retail sale” means sale of agricultural produce not exceeding such quantity as may be prescribed;

(zm) “State Government” or “Government” means the Government of Himachal Pradesh;

(zn) “seller” means a person who sells or agrees to sell any agricultural produce;

(zo) “trader” means a person who in his normal course of business buys or sells any notified agricultural produce and includes a person engaged in processing of agricultural produce but does not include an agriculturist;

(zp) “transportation” means taking agricultural produce by push cart, bullock cart, truck or other vehicle in course of business for marketing from one place to another;

(zq) “transporter” means a person who transports agricultural produce; and

(zr) “value addition” means processing, grading, packing or other activities due to which value is added to agricultural produce.

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