The andhra pradesh (agricultural produce and livestock) markets act, 1966




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THE ANDHRA PRADESH (AGRICULTURAL PRODUCE AND LIVESTOCK) MARKETS ACT, 1966.
ACT No. 16 OF 1966.

An Act to consolidate and amend the law relating to the regulation of purchase and sale of agricultural produce, livestock and products of livestock and the establishment of markets in connection therewith.
BE it enacted by the Legislature of the State of Andhra Pradesh in the Seventeenth Year of the Republic of India as follows :-
1) This Act may be called the Andhra Pradesh

(Agricultural Produce and Livestock ) Markets Act, 1966.

(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall come into force on such date as the Government may, by notification, appoint.


2. In this Act, unless the context otherwise requires:
(i) “ Agricultural produce” means anything produced from land in the course of agriculture or horticulture and includes forest produce or any produce of like nature either processed or un-processed and declared by the Government by the notification to be agricultural produce for the purposes of this Act:

[(ia) “ Assessing authority” shall mean the Secretary of the Market Committee as specified in its bye-lawa];

(ii) “ Director of Marketing” means the Director of Marketing appointed by the Government. [ and includes the Commissioner of Development of Marketing]

(iii) “ Government ” means the State Government;




  1. “growers” means a person, who produces by himself or by hired labour or otherwise, or receives under tendency agreement, the agricultural produce, but does not include a dealer or commission agent in such produce, although he may be a grower of such produce.

If any question arises as to whether a person is a grower or not, the decision of the Director of Marketing thereon shall be final.


(v) ‘Livestock’ means cows, buffaloes, bullocks, bulls, goats and sheep and includes poultry, fish and such other animals as may be declared by the Government by notification to be livestock of the purposes of this Act’

(vi) ‘market’ means a market established under sub-section (3) of section 4 and includes market yard and any building therein;

(vii) ‘market committee’ means a committee constituted or reconstituted under the provisions of this act’

(viii) ‘municipality’ means any municipality governed by the law relating to municipalities for the time being in force in the State and includes the Municipal Corporation of Hyderabad.

(ix) ‘notification’ means a notification published in the Andhra Pradesh Gazette, and the word ‘notified’ shall be construed accordingly’

(x) notified agricultural produce, livestock or products of livestock’ means agricultural produce, livestock or products’ of livestock specified in the notification under section 3’

(xi) ‘notified area’ means by area notified under section3

(xii) ‘notified market area’ means any area declared to be a market area by notification under section 4’

(xiii) ‘person’ means an individual or company or an association of individuals, whether incorporated or not, and includes a Joint Hindu family’

(xiv) ‘prescribed’ means prescribed by rules and made under this Act;

(xv) ‘products of livestock’ means such products of livestock as may be declared by the Government by notification, to be products of livestock for the purposes of this Act.

(xvi) ‘trader’ means the person licensed under sub-section (1) of Section 7 and includes the person in whose management the collection of fees is placed whether he is called a commission agent, ginner, presser, warehouseman, importer, exporter, stockist or by whatever local name he is called)


3. (1) The Government may publish in such manner as may be prescribed a draft notification declaring their intention of regulating the purchase and sale of such agricultural produce, livestock or products of livestock in such area as may be specified in such notification.
(2) Such notification shall state that any objections or suggestions which may be received by the Government from any person with in a period to be specified therein will be considered by them.
(3) After the expiration of the period specified in the draft notification and after considering such objections and suggestions as may be received before such expiration, the Government may publish in such manner as may be prescribed a final notification declaring the area specified in the draft notification or any portion thereof, to be a notified area for the purposes of this Act in respect of any agricultural produce, livestock and products of livestock specified in the draft notification.
(4) Subject to the provisions of sub-sections (1).,(2) and (3), the Government may, by notification –

(a) exclude from a notified area, any area comprised therein; or



  1. include in any notified area, any area specified in such notification; or

  2. declare a new notified area by separation of area from any notified area or by uniting two or more notified areas or parts thereof or by uniting any area to a part of any notified area;

Provided that where, as result of declaration of a new notified area under this clause, the entire area comprised in an existing notified area is united to one or more notified areas, the said existing notified are shall stand abolished.


4. (1) The Government shall constitute, by notification, a market committee for every notified area from such date as may be specified in the notification and the market committee so constituted shall be a body corporate by such name as the Government may specify in the said notification, having perpetual succession and a common seal with power to acquire, hold and dispose of property and may, by its corporate name, sue and be sued:
Provided that any market committee functioning immediately before such constitution in respect of a notified area abolished under the proviso to clause(c) of sub-section(4) of section 3 shall stand abolished.

(1-A) Any notification made under sub-section (1) for the constitution of a new market committee in respect of any new notified are declared under clause (c) of sub-section (4) of section 3, may contain such supplemental, incidental and consequential provisions, including provisions as to the composition of the new market committee or new and existing market committees and the apportionment of the assets and liabilities between the market committees affected thereby.



  1. It shall be the duty of the market committee to enforce the provisions of this Act and rules and bye-laws made thereunder in the notified area.




  1. (a) Every market committee shall establish in the notified are such number of markets as the Government may, from time to time, direct for the purchase and sale of any notified agricultural produce, livestock or products of livestock and shall provide such facilities in the market as may be specified by the Government, from time to time, by a general or special order.

    1. Every market committee shall also establish in the notified area such number of markets as the Government may, from time to time, direct for the purchase and sale, solely of vegetables or fruits and shall provide such facilities in the market as may be specified by the Government, from time to time, by a general or special order.

    2. The market committee shall declare, by the notification, the limits of every market established by it under clauses (a) and (b) ( hereinafter referred to as the market area).

(4) As soon as may be after the establishment of a market under sub-section(3), the Government shall declare by the notification the market area such other area adjoining thereto as may be specified in the notification, to be notified market area for the purpose of this Act in respect of any notified agricultural produce, livestock or products of livestock.


(5) Subject to the provisions of sub-sections(1),(2),(3) and (4), the Government may, by notification –

(a) exclude from a notified market area, any area comprised therein; or

(b) include in any notified market area, any area specified in such notification.
5 (1) Every market committee shall consist of fourteen members and shall be constituted by the Government by notification in the following manner –
(i) Eight members to be appointed by the Government in consultation with the Director of Marketing from among the following categories of growers of agricultural produce, owners of livestock and products of livestock in the notified area, namely:-

(a) growers of agricultural produce who are small farmers;

(b) growers of agricultural produce other than small farmers;

(c) owners of livestock and products of livestock :


Provided that, there shall atleast be three members from among persons belonging to Scheduled Castes, Scheduled Tribes, Backward Classes, minorities and women:
Providing further that, there shall be atleast two members representing the category of small farmers;
(ii) two members to be appointed by the Government in consultation with the Director of Marketing from among the licensed traders in the notified area of whom one shall be a small trader;

(iii) one member to be appointed by the Government from among the Presidents or persons-in-charge, if any, for the time being performing the functions of Primary Agricultural Co-operative Societies or the Co-operative Marketing Societies having their area of operation within the notified area;


(iv) the Assistant Director of Marketing having jurisdiction over the notified area or any other officer nominated in this behalf by the Director of Marketing;
(v) the Assistant Director of Agriculture or Assistant Director of Horticulture or Assistant Director of Animal Husbandry or Assistant Director of Fisheries having jurisdiction over the notified area or any other officer nominated in this behalf by the concerned Head of the Department;
(vi) Chairperson of the Municipality or the Sarpanch of the Gram Panchayat, as the case may be, in whose jurisdiction the office of the Market Committee is located:
Provided that in the case of a Municipal Corporation constituted under ant law relating to Municipal Corporations for the time being in force in the State, one person as may be nominated by the Corporation shall represent the Corporation in the Agricultural Market Committee concerned where a notified area comprises the Corporation also.
Explanation I: For the purpose of this sub-section, a ‘small farmer’ means a farmer holding an extent not more than 4,04686 hectares (ten acres) of dry land or 2,02343 hectares (five acres) of wet land.
Explanation II: (1) In computing the extent of land held by the farmers for the purpose of this sub-section, 0.404686 hectares (one acre) of wet land shall be deemed to be equal to 0.809372 hectares (two acres) of dry land.
(2) Every market committee shall have a Chairman appointed from among its members specified in Clause(i) of sub-section (1) and Vice-Chairman be appointed from among its members specified in Clause (i) or Clause(ii) of sub-section (1), by the Government in consultation with Director of Marketing ;]
(3) Save as otherwise provided in this Act, the term of office of the members appointed under sub-section (1) shall be three years from the date of appointment:
Provided that a member appointed under [clause(ii) of sub-section (1) shall cease to hold office, if he ceases to be a traders:
Provided further that a non-official member of the market committee shall cease to hold his office if he absents himself from three consecutive meetings of the committee, including meetings which for want of quorum could not be held.
Explanation : For the purposes of the second proviso, no meeting of the market committee from which a member that meeting was not given to him.

(4) Where a person ceases to be a member under the second proviso to sub-section (3), the Chairman shall at once intimate the fact in writing to such person and report the same to the market committee at its next meeting. If such person applies for restoration to the market committee on or before the date of its next meeting or within fifteen days of the receipt by him of such intimation the market committee may at next meeting after the receipt of such application restore him to his office:


Providing that a member shall not be so restored more than twice during his term of office.
(5) The Government may, by notification, remove the chairman or vice-chairman, who in their opinion willfully omits or refuses to carry out or disobeys the provisions of this Act or any rules or bye-laws or lawful orders issued hereunder or abuses his position or the powers vested in him, after giving him an opportunity for explanation, and the said notification shall contain a statement of the reasons of the Government for the action taken.

(6) Any person removed under sub-section (5) from the office of Chairman or Vice-Chairman shall not be eligible for appointment to wither of the said offices, until the date of next reconstitution of the market committee under sub-section (1) of section 6.

(7) Any other member of a market committee may, at any time, be removed from office by the Government for such reasons and after such inquiry, as may be prescribed.
(8) When any vacancy occurs in the office of a member it shall be filled in the manner laid down in sub-section(1):
Provided that no such vacancy shall be filled within three months before the expiration of the term of office of the member.
(9) The member appointment to fill a vacancy under sub-section (8) shall hold office for the remainder of the term of his predecessor.
(10) When any vacancy occurs in the office of a chairman or vice-chairman, it shall be filled in the manner laid down in sub-section (2) and the person [appointed] to fill in such vacancy shall hold office only for the remainder of the term of his predecessor.

6. (1) The Government shall reconstitute the market committee on the expiration of the term of office of the members of the market committee or of the term as extended under sub-section(2).


(2) The Government may extend the term of office of the members of a market committee for a period not exceeding one year:

Provided that no such extension shall be given for a period exceeding six months at a time.

(3) (a) Where, for any reason, there is delay in the constitution of the market committee in accordance with the provisions of this Act, the Government may appoint a person or persons to manage the affairs of the market committee [until the market committee is re-constituted]
(b) The person or persons so appointed shall, subject to the control of the Government and to such instructions or directions as they may issue from time to time, exercise the powers, discharge the duties and perform the functions of the market committee and take all such action as may be required in the interests of the market committee.
(c) The Government may fix the remuneration payable to the person or persons so appointed. The amount of such remuneration and other costs, if any, incurred in the management of the market committee shall be payable out of the Market Committee Fund.
(d) The Government may at any time, and shall at the expiration of the period of appointment of person or persons so appointed, arrange for the constitution or reconstitution of the market committee in accordance with the provisions of this Act. The person or persons so appointed shall cease to manage the affairs of the market committee on such constitution or reconstitution.

6-A. If the Government are of the opinion that the Chairman of the Market Committee willfully omitted or refused to carry out the orders of the Government for the proper working of the Market Committee or abused his position or the powers vested with him, and that the further continuance of such person in office would be detrimental to the interests of the Market Committee or the inhabitants of the market, the Government may, by order, suspend the chairman of the market committee form office for a period not exceeding three months pending investigation into the said charges and action thereto under the foregoing provision of this Section.


Provided that it shall be competent for the Government to extend from time to time, the period of suspension for such further period not exceeding three months, so however, that the total period of suspension shall not exceed six months.
6-B Notwithstanding anything in this Act or the rules made thereunder, where in the opinion of the Government, the Chairman of the Market Committee willfully omits or refuse to carry out the orders of the Government for the proper working of the market committee or abuses his position or the powers vested in him, they may by order, withdraw all or any of the powers vested in him by or under this Act pending investigation into such omission, refusal or abuse of position or power, and cause all or any of the powers and function of the Chairman to be exercised and performed by such person or authority as the Government any appoint in that behalf.
7. (1) No person shall, within a notified area , set up, establish or use, or continue are 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 livestock except under and in accordance with the conditions of a licence granted to him by the market committee:
Provided that the market committee may exempt form the provisions of this sub-section 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:
Provided further that a person selling notified agricultural produce, livestock or products of livestock grown, reared or produced by him, shall be exempt from the provisions of this sub-section, but the Government may, for special reasons to be recorded in writing, withdraw such exemption in respect of any such person.
Provided also that the market committee shall not renew the licence granted under this section, unless the license pays all the arrears of amount due to it under provisions of this Act.
Explanation: Nothing in the second proviso to this sub-section shall be construed as exempting a co-operative marketing society registered or deemed to be registered under the Andhra Pradesh Co-operative Societies Act, 1964, selling notified agricultural produce, livestock or products of livestock or products of livestock for his own domestic consumption.
(2) Nothing in sub-section (1) shall apply to a person purchasing notified agricultural produce, livestock or products of livestock for his own domestic consumption.
(3) A licence granted under sub-section (1) shall be in such form and subject to the payment of such fees, as may be prescribed:
Provided that no fees shall be charged for the grant of a licence –
(i) to the Khadi and Village Industries Commission;

(ii) to as co-operative marketing society referred to in the explanation to sub-section(1);

(iii) to a person merely for curing , pressing or processing any notified agricultural produce or products of livestock.
(4) ( a) A licence under sub-section (1) may be refused to a person –

(i) whose licence was cancelled and one year has not elapsed since the date of the cancellation;

(ii) who has been Convicted of an offence or been guilty of misconduct which, in the opinion of the market committee affects the said person’s integrity as man of business;

(iii) in regard to who the market committee is satisfied after such inquiry as it considers adequate, that he is a benamidar for, or a partner with, any other person to whom a licence may be refused under sub-clause (I) or sub-clause (ii):

(iv) if, in the opinion of the market committee, the grant of a licence is likely to affect the transaction of purchase or sale in the market or the levy of market fees therefore.
(b) The market committee may, in accordance with such rules as maybe made by the Government and after such inquiry as it deems fit, cancel or suspend any licence granted under sub-section(1).

Provided that in the case of refusal to grant a licence or of suspension or cancellation of a licence, the applicant or the licencee, as the case may be, shall be entitled to appeal to such officer and in such manner as may be prescribed.


(5) A person to whom a licence is granted under sub-section(1) shall comply with provisions of this Act, the rules and the bye-laws made thereunder and the conditions specified in the licence.
(6) Notwithstanding anything in sub-section (1), on person shall purchase or sell any notified agricultural produce, livestock and products of livestock in a notified market area, outside the market in that area.
8. The market committee may appoint one or more of its members, to be a sub-committee or special committee for the conduct of any work or to report on nay matter, and may delegate to any one or more of it members such of its powers or duties as it may think fit.

9. (1) The market committee may, at any time, call a meeting of the market committee, but such meeting shall be held at least once in every month. The market committee shall also call a meeting of the market committee within one month after receipt of a requisition in writing from the Director of Marketing or form one-third of the toral number of members of the market committee.


Explanation : In the determination of one-third of total number of members under this sub-section, any fraction arrived at shall be counted as one,
(2) Where a meeting is not called as provided in sub-section (1) the Director of Marketing is not called as provided in sub-section(1) the Director of Marketing shall call such meeting.
1[(3) It shall be the duty of the chairman to convene the meetings of the Market Committee in accordance with the provisions of sub-section (1) and where a Chairman of the market Committee fails to convene three consecutive meetings of the market committee from the date of the commencement of office or the last meeting of the Committee, he shall cease to be the Chairman unless such cessation has otherwise occurred before that date and for a period of one year from such date he shall not be eligible to be appointed as Chairman.
10. (1) All appointments of officers and other employees necessary for the management of the market shall be made in the prescribed manner.

(2) The market committee shall in the case of persons in the service of the Government whom it employs, make such contribution towards his pension and leave allowances, as may be required by the conditions of his service under the Government, to be paid by him or on his behalf.


(3) The chairman, vice-chairman and every officer or servant of a market committee shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.
11. (1) Every contract entered into by a market committee shall be in writing and shall be signed on its behalf by the chairman and two other members thereof and if the market committee has been superseded, by the person or persons appointed under sub-section (3) of section 22.
(2) No contract other than a contract executed as provided in sub-section (1) shall be binding on a market committee.
12. (1) The market committee shall levy fess on any notified agricultural produce, live stock or products of live stock purchased or sold in the notified market area (at such rate, not exceeding (two rupees) as may be specified in the bye laws) for every hundred rupees of the aggregate amount for which the notified agricultural produce, live stock or products of live stock is purchased or sold, whether for cash or deferred payment or other valuable consideration.
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