CONTENTS

1. Short title and commencement

2. Amendment of Section 2 of U.P. Act no. 25 of 1964

3. Amendment of Section 7

4. Amendment of Section 7-A

5. Insertion of new Section 7-E

6. Amendment of Section 9-A

7. Amendment of Section 17

8. Repeal and saving

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An Act further to amend the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964.

It is hereby enacted in the Seventy-first Year of the Republic of India as follows:—

## Section 1. Short title and commencement.—(1). This Act may be called the Uttar Pradesh Krishi Utpadan Mandi (Dwitiya Sanshodhan) Adhiniyam, 2020.

(2) It shall be deemed to have come into force With effect from May 11, 2020.

2. Amendment of ## Section 2 of U.P. Act no. 25 of 1964.—In Section 2 of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964, hereinafter called as the principal Act, after clause (ee), the following new clause (ff) shall be inserted, namely:—

(ff) “User Charges” means the amount paid in consideration of material or service.

3. Amendment of ## Section 7.—In the principal Act, for the proviso to clause (b) of sub-section (2) of Section 7 the following proviso shall be substituted, namely:

Provided that the provisions of this clause shall have no effect on the following—

1. Market sub yard;

2. Direct Marketing;

3. Private Mandi Yard;

4. Trade through Unified License;

5. Purchase Centres under minimum support price scheme;

6. Trade through digital platform approved by Director, Mandi Parishad: Provided that the licenses issued by Mandi Samiti or Director, Agriculture Marketing shall not be within the specified distance from the declared and constructed principal market yard/sub-market yard, determined by Director, Mandi Parishad.

4. Amendment of Section 7-A.—In Section 7-A of the principal Act, for sub-section (3), the following sub-section shall be substituted, namely:—

(3) The person transacting within such warehouse/silo/cold storage or other structure or place, in declared market sub-yard, shall have to pay 75% of the applicable market fee to the market committee on the value of transacted notified agriculture produce. The owner/licensee of the market sub-yard may levy and collect up to 25% of the market fee as user charge on the specified agriculture produce, which can be spent for maintenance and development of the yard.

5. Insertion of new Section 7-E.—In the principal Act after Section 7-D, the following new section shall be inserted, namely:—

7-E. Establishment of Producer Consumer market yard (Sale of agriculture produce within retail limit by producer to the consumer)—

(1) Subject to prescribed fee, conditions and restrictions, the officer authorised by the Government may issue license to the concerned person who establish producer consumer markets in which retail trade of specified agriculture produce can take place.

(2) The licensee may establish and develop the infrastructure in the producer consumer market, within the reach of producer and consumers, as may be prescribed:

Provided that the consumer shall purchase within the retail limit.

6. Amendment of Section 9-A.—In Section 9-A of the principal Act, for sub-section (1) the following sub-section shall be substituted, namely:—

(1) Any Market Committee, which shall be main Mandi Samiti, may grant unified license to purchase specified agriculture produce from the farmers and traders in such a manner as may be prescribed in the bye laws, in the pre-communicated places in the whole State, for one or more of the following purposes:—

(a) processing of specified agriculture produce;

(b) trading of specified agriculture produce;

(c) grading, packing and transaction in other way by value addition of specified agriculture produce.

7. Amendment of ## Section 17.—In Section 17 of the principal Act in clause (iii) after sub-clause (b) the following sub-clause shall be inserted, namely:—

(c) User charge shall be levied and collected by the market committee in consideration to the rendered material or services in the principal market yard/sub-market yard/market sub-yard, as prescribed by the State Government.

## Section 8. Repeal and saving.—(1) The Uttar Pradesh Krishi Utpadan Mandi. (Sanshodhan) Adhyadesh, 2020 (U.P. Ordinance no. 9 of 2020) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the provisions of the principal Act as amended by the Ordinance referred to in sub-section (1) shall be deemed to have been done or taken under the corresponding provisions of the principal Act as amended by this Act as if the provisions of this Act were in force at all material times.

Statement of Objects and Reasons.—The Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 (U.P. Act no. 25 of 1964) was enacted to provide for regulation of sale and purchase of agricultural produce and for the establishment, superintendence and control of markets thereof in Uttar Pradesh.

To make the market more competitive, in the interest of the farmers and in view of the guidelines of the Government of India in the purview of Covid-19 relating to the decentralization of mandi sites for stopping crowding of farmers and traders and to follow social distancing standards, certain amendments were required in the Act, for effective development of Mandi sub-sites.

Further, amendments were also required to provide for an integrated license to carry on trade in order to protect interests of consumers along with the producers by establishing a producer consumer market which would reduce the member of middlemen and get up to 100 per cent of consumer price to the producers, lastly amendments were required in the Act, to provide for inclusion of private capital which would generate additioal employment.

Since the State legislature was not in session and immediate legislative action was necessary to implement the aforesaid decision, the Uttar Pradesh Krishi Utpadan Mandi (Sanshodhan) Adhyadesh, 2020 (U.P. Ordinance no. 9 of 2020) was promulgated by the Governor on May 11, 2020.

This Bill is introduced to replace the aforesaid Ordinance.