Tamil Nadu Government issues the TN Agricultural produce Marketing (Regulations) Second Amendment Ordinance, 2020; lays down procedure for obtaining license for private market yard and sub-yard

In a Gazette Notification dated 29th May, 2020 the Tamil Nadu Government has issued the Tamil Nadu Agricultural produce Marketing (Regulations) Second Amendment Ordinance, 2020 (“Ordinance”) in order to further amend the Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987 (“Principal Act”).


The Principal Act was enacted to make better provisions for regulation of buying and selling of agricultural produce and establishment and proper administration of markets for agricultural produce. Now, to achieve the following objectives, the present Ordinance is being issued:
1. To provide geographically restriction free trade/ transaction of agricultural produce across the state in order to give freedom to the agriculturist so that they can sell their produce across time and space.
2. To enhance transparency in trade operations.
3. To promote emergence of multiple channels for competitive marketing.
4. To encourage investment in development of market and marketing infrastructure.

Key Takeaways:

1. Direct Marketing:

  • The Ordinance inserts provision for Direct Marketing which, in relation to agricultural produce means direct wholesale purchase of agricultural produce from the producers by processors, exporters or bulk buyers outside the market, special and subsidiary market, private market yards or private market sub yards.
  • Direct marketing may also be carried out outside the market, private market yard or private market sub yard.
  • For direct marketing, an application has to be made for obtaining license from the Director. The license will be valid for a period of 3 years.


2. Establishment of private market yard:

  • The Director may grant license to any person for establishing a private market yard anywhere in the unified market area or for trading in agricultural produce.
  • The license so granted will be valid for a period of 3 years.
  • The Director has been vested with the power to grant/refuse a license or refuse renewal of a license.


3. Establishment of private market sub yard:

  • The Government may declare a warehouse/silo or a cold storage as a private market sub yard.
  • The owner of the private market sub yard has to make an application for license to the Director . the license so granted will be valid for 3 years.
  • The private market sub yard licensee must collect user charge on the agricultural produce at the rate ad valorem not exceeding the prescribed rate.


4. Fee to be levied by the market committee:

  • On any notified agricultural produce brought/sold in any notified market area, the market committee will levy a fee not exceeding Rs.2 for every Rs.100 of the aggregate amount.


Please Note:
a. The provision relating to levying of fee has gained force immediately, on the publication of the Notification in the Official Gazette.

b. The provisions relating to direct marketing and establishment of yards will come into force on such other date appointed by the State Government by a Notification


Source: State Government, Tamil Nadu


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