Area of Reforms

Position of the Act

before amendment

Position of the Act

after amendment








Title of the Act

Andhra Pradesh (Agricultural Produce and Livestock )  Markets Act 1966

The Andhra Pradesh (Agricultural Produce and Livestock )  Markets (Amendment) Act, 2005



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

Under Section 7 of the Act-

No person shall, within the notified area, setup, establish or use , or continue or allow to be continued, any place for the purchase, sale, storage, weighment, curing, pressing or processing of any notified Agricultural Produce or products of livestock or for the purchase or sale of live stock except under the licence granted to him by the market committee.


Under Sub-Section 7 of Section 7 -

“Private market” means a market established in the notified area where infrastructure has been developed by a person for marketing of notified agricultural produce holding a licence for the purpose of this Act.



Direct sale/ procurement from the farmers field

Under section 7 of the Act-

Market committee may exempt from the provisions or the conditions of a lincence granted to him, any person who carries on the business of purchasing or selling any notified agricultural produce, livestock or products of livestock not exceeding such value as may be prescribed.

Under the proposed Rule 53 A –

Setting up of private markets/direct marketing have been allowed.



Institutional support to contract farming through


     i.      Registration of

 sponsoring       company


       ii.   Recording of Contract          Farming agreement

      iii.   Time bound dispute resolution mechanism 

     iv.   Indemnity to farmers land       


No provision

Under section 11 (A) –

1.      A market committee shall register the transactions of contract farming in the notified area with prior permission of the government or such authority as may be prescribed for the purposes of this Act.


2.      The Contract farming shall not be performed unless:-


     i.      The buyer has registered himself in the notified area of the market committee, wherein the land of contract farming producer is situated or with such authority as may be prescribed, in case the land of contract farming producer is situated in more than one notified area;


    ii.      the agreement is registered with the market committee or in the such author8ity as the case may be and in such forum are in accordance with such procedure as may be prescribed;


  iii.      no title, possession or ownership of contact farming producer over his land shall get transferred to contract farming buyer or to any other person regardless of anything contained in contract farming agreement.


3.   If any dispute between the parties in respect of the terms and conditions of the agreement, either of the parties shall submit an application to the market committee or the prescribed officer as the case may be to arbitrate upon such dispute.  The market committee or the prescribed officer shall resolve the dispute after giving the parties, a reasonable opportunity of being heard.


4.  The party aggrieved by the decision of the market committee or  prescribed officer under sub-section (2)  shall prefer an appeal  to the  Appellate Authority within thirty days from the date of the arbitration award and the appellate authority shall dispose of the appeal after giving the parties a reasonable opportunity of being heard and the decision shall be final.


5.   Any action taken or any order passed in accordance with the terms and conditions of the contract farming agreement shall not be called in question in any court of law.


6.  The agricultural produce under contract farming shall be sold to the contract farming buyer out of the market yard in the manner as may be prescribed, on payment of market fee by the contract farming buyer.




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

No provision

Under section 7-A and 7-B 

National Integrated Produce market shall be established to marketing of Agricultural Produce including fruit & vegetables owned & managed by NDDB, directly or through any organization set up by itself or in conjunction with farmers associations.



Market fee/tax.


1.Single Point levy in the entire process of marketing










2. Fee on

  1. Direct Marketing
  2. Contract Farming
  3. Processing
  4. Exports


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



Under section 12 (a) of the Act -

Market fee is payable on transaction of sale of specified Agricultural produce in the market area and if no transaction of  sale takes place in a particular market area, no fee can be charged by the market committee of that area.







Under section 12 – (i)

The market committee shall levy fees on any notified agricultural produce, livestock or products of livestock purchased or sold in the notified market area (at such rate, not exceeding one rupee, as may be specified in the bye-lays) for every hundred rupees of the aggregate amount for which the notified agricultural produce, livestock or products of livestock is purchased or sold, whether for cash or deferred payment or other valuable consideration.



No change.













No exemption

No exemption

No exemption

No exemption


No change.






Licensing :


i.      Whether licensing system is simplified


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

Under section 48 (iv) -


Where a trader licenced in one market committee desires to effect purchase or sale in the jurisdiction of another marketing committee, he may be granted a special licence on payment of Rs. 15.

No change



Whether Marketing Board has set up:

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




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



No separate market led extension cell exist.  However concerned market committees under take market led extension activities.


No provision exists. However, concerned market committees undertake promotion of grading.



No change







No change