THE SINDH WHOLESALE AGRICULTURAL PRODUCE MARKETS
(DEVELOPMENT AND REGULATION ACT, 2010)

SINDH ACT NO. 11 OF 2010

To provide for development and regulation of competitive and transparent wholesale agricultural produce markets in the Province of Sindh.

WHEREAS it is expedient to provide for enhanced competition and efficiency by enabling the establishment of private sector wholesale agricultural produce markets, promoting private sector investment to develop the agricultural marketing system, and allowing effective regulation for more competitive transparent, modern and efficient wholesale agricultural produce markets in the Province of Sindh and for the matters connected therewith or ancillary thereto.

89                           SINDH GOVERNMENT GAZETTE EXT, MAY, 25, 2010         PART-IVA

It is hereby enacted as follows:-

• Short title, Commencement and extent

1. This act may called the Sindh Wholesale Agricultural Produce Markets (Development and Regulation) Act, 2010
2. It extends to the whole of the Province of Sindh.
3. It shall come into force at once.

Definitions.

            In this Act, unless there is anything repugnant in the subject or context –

1. “Agricultural produce” includes all agricultural or horticultural produce, livestock or poultry, fish of seafood and products and by-products thereof, all of which are capable of human consumption, for sale or purchase in wholesale market within a boundary.
2. “Allottee” means a person who has been allotted a plot in a notified market by Government, under the Sindh Agricultural Produce Markets Act, 1939, which allotment is effective on the date of this Act.
3. “dealer” means any person who, within a notified market or a private market, establishes or continues or allows to be continued any facility (including land and infrastructure) for the wholesale purchase or sale of any agricultural produce, or who engages in the wholesale purchase or sale or agricultural produce and shall include all persons who are allottees in the date of commencement of this Act.
4. “General market” means an agriculture produce market dealing in a variety of agriculture produce items.
5. “Government” means the Government of Sindh.
6. “grower” means a person who grows agricultural produce either directly or through tenants, hired labour or otherwise, and includes a grower who is a partner of a firm of dealers or brokers or is otherwise engaged in the business of the disposal or storage of agricultural produce.
7. “market committee” means a committee notified and established under section 7 of the Agricultural Produce Market Act 1939, which committees is in existence on the date of commencement of this Act.
8. “Market company” means a company incorporated under section 6 of this Act.
9. “market standards” means standards prescribed from time to time in relation to the design, construction, implementation, operation and the maintenance of notified markets and private markets;
10. “notified market” means a wholesale market established under the agricultural Produce Markets Act, 1939.
11. “private market” means a facility that includes a building on a block of buildings an enclosure and such infrastructure and, or services as may be prescribed for the purpose of the wholesale purchase or sale of agricultural produce owner by the private person entity, or entities established and managed under this Act.
12. “prescribed” means prescribed by the rules made under this Act.
13. “rules” means the rules made under this Act.
14. “specialized market” means an agriculture produce market largely dealing in a single variety of agriculture produce item or items; and
15. “wholesale” means the sale or purchase of agriculture produce by a dealer or a grower to another dealer or a grower for the purpose of resale, but does not include the sale or purchase of agriculture produce to an end-use or customer.

CHAPTER-1 REGULATION OF
PRIVATE MARKETS AND NOTIFIED MARKETS

Regulation of private markets and public wholesale markets.

1. All the markets and notified markets shall be regulated in accordance with the provisions of this Act and the rules made hereunder from time to time.
2. Government shall take all steps to ensure that notified markets are transferred to market companies as may be prescribed.
3. Government shall not exercise any power under the Agricultural Produce markets Act. 1939 for the establishment of any new notified market ant the declaration of any notified area.
4. One commencement of this Act, neither any new market shall be established nor any area declared for such purpose under the provision of Agricultural Produce Markets Act 1939.

CHAPTER-2
MODE OF TRADING

Mode of trading

1. Notwithstanding the requirements of any other law for the time being in force (including any law imposing price control on the sale or purchase of agricultural produce), all agricultural produce intended to be purchased or sold on a wholesale basis at a notified market or a private market shall be purchased by or sold to dealers or other buyers by open auction, or any other market howsoever established.
2. A grower may directly sell his agricultural produce in such manner and on such terms and conditions as he deems fit and shall not be required to sell such agricultural produce through or at a notified market or a private market, or any other market howsoever established.

CHAPTER-3
RE-ORGANIZATION OF NOTIFIED MARKETS

Dissolution of Market Committees

1. The market committees existing immediately before the commencement of this Act shall stand dissolved as may be prescribed.
2. Notwithstanding any provision of any law for the time being in force, any person shall be entitled, at any time after the date of commencement of this Act, to establish a private market, for the wholesale, sale or purchase of agricultural produce in accordance with the provision of this Act and in such manner as may be prescribed.

Incorporation of notified markets

1. Government shall with respect to each notified market, not later than the date as may be prescribed for the dissolution of such notified market, take all steps and do all acts and things necessary to ensure that all the assets and all the liabilities of each such notified market company incorporated as a private limited company under the Companies Ordinance 1984, so that the assets and liabilities of each such notified market shall stand transferred from respective market committee to a separate market company. The transfer of each such notified market to its market company shall take place in such manners may be prescribed, provided that Government shall ensure that, with respect to each notified market, a complete valuation of the assets and liabilities of such wholesale market are undertaken by a chartered accountant or a firm of chartered accountants established and registered under the Chartered Accountants Ordinance, 1961 and such number oif shares are issued by each market company so as to ensure that the issued, subscribed and paid up
   capitals of a market company as fully reflects the results of such complete valuation.
   
   
2. All issued shares in a market company shall be held by Government or any agency or instrumentality thereof or any person or entities nominated by Government and shall be issued at par, each share having nominal value of rupees ten only. Government, in its capacity as a shareholder of the market companies, shall always exercise its voting powers therein, in a manner that is consistent with the purpose of this act.
   
   
3. Each market company shall be established as single purpose market company to be establish and maintained exclusively for operating and managing the notified market which has been transferred to such market company under sub-section(1).
   
   
4. No share of any market company shall be sold, transferred, assigned, pledged, encumbered or in any manner used as security for the procurement of any loan, liability or other advantage or right except in such manner as may be prescribed.
   
   
5. Government shall ensure that, with effect from the date of commencement of this Act, each allottee having rights that are enforceable against a market committee of the notified market under the Agricultural Produce Markets Act, 1939 shall have similar rights available to it under a new contract or obligation to be entered into between such allottee and the market company to which the assets and liabilities of such notified market have been transferred under this Act.
   
   
6. No market company shall sell, transfer, assign, pledge, encumber or otherwise use as security, any of its fixed assets except with the approval of resolution passed by the shareholders of such market company.

Board of Directors for notified markets:

1. Each market company shall, at all times, have a board of seven Directors of which three shall be Agriculturists, three shall be nominated by the allottees of notified market of which the market company is the successor and one Director shall be nominated by Government.
2. Out of three directors representing agriculturists, one each shall be nominated by the Sindh Chamber of Agriculture. Sindh Abadgaar Board and Government respectively.
3. Each of the Directors nominated by the allottees under sub-section (1) shall have not less than seven years experience in the wholesale marketing of agricultural produce and such other qualifications as may be prescribed.
4. Each Market company shall have a full time Chief Executive and a Chief Financial Officer, to be appointed by the board of Directors of the market company through a transparent and competitive recruitment process, from the date of incorporation of the market company. The terms and conditions of employment of the chief Executive and the Chief Financial Officer shall be as mutually agreed between the market company and such person.
5. The Chief Executive appointed by the Board of Directors shall have atleast seven years marketing experience, preferably in the agricultural produce sector.
6. The Chief Financial Officer appointed by the Board of Directors of the market company shall be a chartered accountant registered under the Chartered Accountants Ordinance, 1961 and shall have atleast seven years experience of relevant field.
7. Each market company shall be exclusively responsible for the management, administration, and development of the relevant notified market transferred to it and shall undertake the same in accordance with the market standard as may be prescribed.

Chairman of the Board of Directors:

The Chairman of the Board of Directors of the market company shall be elected by the Directors from amongst the Directors.

Functions and powers of Board of Directors:

The Memorandum and Articles of Association of a market company shall specify the functions and powers of the respective market company and Board of Directors of the company and Chief Executive so as to ensure that the Board of Directors of the company has complete autonomy to the extent permitted by law to manage the business and affairs of the market company.

Appointment of Officers and staff:

1. Each market company shall have a Secretary who shall exercise such powers as may be prescribed. The Secretary shall have such qualifications and experience as may be prescribed and shall be appointed by the Board of Directors of the market company on such terms and conditions as may be mutually agreed between such market company and such person.
2. Each market company shall also have ministerial staff for management of affairs of market, in accordance with the procedure, as may be prescribed.

Transfer of all the employees of market committees to market company:

1. All the employees of the Market Committees including the employees of Market Committees pool Fund shall be transferred by Government for service under the successor market company on such terms and conditions as may be determined by Government, which shall not be less favorable than those admissible to them immediately before transfer to the market companies.
2. Pension, gratuity, communion and other services benefits as the case may be admissible to such employees including the employees into retired or died while serving in the Market Committees Pool Fund before the commencement of this act shall be the responsibility of the successor Market Companies and settled in the manner as may be prescribed.

Memorandum and Articles of Association of a Market Company.

The Memorandum of Association and the Articles of Association of a market company shall contain such provisions as may be prescribed.

Financial sustainability

Each notified market shall be operated by its market company in such  manner as shall ensure that such wholesale market is financially self-sustaining without recourse to lending, grants , or the injection of further equity or other assistance from the Government.

CHAPTER-4
RIGHT TO ESTABLISH A PRIVATE MARKET

Establishment of Private Market

 Any entity or person (with the exception of the federal  Government or  Government or body , entity or organization) established or created or continued  under the  Sindh Local Government Ordinance , 2001 or any entity or person which is directly  owned or  in any  manner  controlled  by the federal  Government or Government or anybody  entity  or organization  established  or created  or continued  under  the Sindh  Local Government Ordinance ,2001) may in  such manner as  may be prescribed ,  establish  one  or  more  private  market  or markets  for the  wholesale  purchase and sale of  agriculture produce.

CHAPTER – 5
REGISTRATION OF AGRICULTURAL PRODUCE MARKETS

Registrations with the Government

1. Each market  company  to which  a notified  market  has been  transferred  under  section 6  and each  private  market  shall be  registered  with  Government in such  manner  and within  such  time  as may  be  prescribed . Government shall Issue a certificate  of  registration  in  such  from and in such  manner  as may be  prescribed , to a market  company  to  which  a  notified  market has been  transferred  under  section 6 or to a private  market  not later  than  sever  days from  the date of compliance  by the  notified  market  or the  private  market ,  as the  cases  may be  with  such  requirements as may be prescribed.
2. All market companies and operators of private markets shall display for public inspection the certificate of registration issued under sub-section (1). 

CHAPTER – 6
DEVELOPMENT AND REGULATION

Power to Make rules:

1. Government  may make rules consistent  with this Act  for  carrying  out the  purposes  of  this  Act being  either  rules  of general  application  to all  wholesale  markets  for  agriculture  produce  in the  province  of Sindh  or with  respect  to any  specific  marketing  company  or private  market.
2. In particular  and  without  prejudice  to the  generality  of forgoing power  such  rules may   provide  for:
   1. Infrastructure standards, equipments and requirements for general and specialized markets.
   2. Place or places at which agriculture produce shall be weighed the description of scales weights and measures.
   3. Reliable grading, standardization and processing equipments and standards.
   4. Inspection, verification, regulation, correction and confiscation of scales, weights and measure in use.
   5. Transparent and reliable auction and financial transactions.
   6. Public or consumer grievance redress.
   7. Transparency and disclosure standards and.
   8. The market standards.
3. A draft  version  of all rules  or any  amendment thereto shall be notified  in the  official  gazette for public  comments  allowing  at least  twenty  days  for  such  comments. A committee  headed by  the  secretary  Agriculture  Department , Government  of Sindh  shall  consider public  comments  received  in response  to the  publication  of drafts rules  and Government  shall , on the  advice  of such  committee  make  such amendments  into The draft rule and notify the same in the official gazette as soon as possible.
4. Government may with or without prior notice inspect a notified market that has been transferred to a market company or any market to ensure that the same are established and operated strictly in accordance with all applicable laws rules and regulations.
5. Each market company or private market shall issue an annual report setting out in out in reasonable details the development and performance of the wholesale markets for agricultural produce.
6. Government shall not later than 120 days from the date of commencement of this act establish or cause to be established on-line information system providing information on the wholesale supply demand and prices of agricultural produce bought or sold in the province of Sindh against payment of fee as may be prescribed.
   

Recovery of outstanding dues of market committees:

All the outstanding dues of the market committees shall be recovered from the defaulters by Government as arrears of land revenue in accordance with the provisions of agricultural produce markets Act, 1939.

CHAPTER 6- OFFENCES AND PENALTIES

Trial of offences:

1. No offence made punishable under this act or any rule made there under shall be tried by a court interior to that of a magistrate of the first class.
2.  Prosecutions under this act may be instituted by a person duly authorized by government.

Penalties:

Whoever contravenes the provisions of this act shall be punishable with a fine which may extend to one hundred thousand rupees, and in the case of a continuing contravention in addition to such fine as aforesaid may extend to one thousand rupees for every day during which the contravention is continued.

Non-Application of Sindh privatization commission ordinance, 2001

Not with standing anything contained in the Sindh Privatization Commission Ordinance 2001 the transfer of a notified market to a market company shall not be deemed to be a privatization for the purposes of the said ordinance.

CHAPTER 7: GENERAL

Repeal

The agricultural produce markets Act, 1939 shall stand repealed on expiry of three years of the commencement of this Act provided that the government shall continue to exercise all the power under the agricultural produce markets act, 1939 to ensure that the statutory functions are performed by the notified markets until the same are transferred to market companies within the stipulated period as may be prescribed.

Act to override other laws.

 The provisions of this act shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

Removal of difficulties:

If any difficulty arises in giving effect to the provisions of this act government may make such order not inconsistent with the provisions of this act as may appear to it to be necessary for the purpose of removing the difficulty.

Transfer of market committees:

Government shall ensure that the notified markets are transferred to the market companies within the stipulated time as may be prescribed.

STATEMENT OF OBJECTS AND REASONS
In order to provide for enhanced competition and efficiency by establishing wholesale agricultural produce market in the private sector and to promote private sector investment for developing the agricultural marketing system in the province of Sindh it is expedient to enact a law for such purpose.