State Act

THE KARNATAKA AGRICULTURAL PRODUCE MARKETING (REGULATION AND DEVELOPMENT) ACT, 1966

131-K. Establishment of E-Commerce Platform.- (1) No person shall establish and run e-commerce platform for trading in notified agricultural produce without obtaining a license under this section. (2) Subject to such conditions, and such fees and such security deposit as may be prescribed, the Director of Agricultural Marketing shall grant license to setup e-commerce platform for facilitating trading in the notified agricultural produce. (3) Any person who desires to establish and run e-commerce platform may apply to the Director of Agricultural Marketing in such manner along with such fee and security deposit as may be prescribed. (4) The e-commerce platform shall,- (i) provide payment facility for notified agricultural produce traded by traders in the platform; (ii) allow only the licensed traders licensed by the appropriate authority under the Act for registering with the e-commerce platform. (iii) ensure transparency in operation, decision making related to entire trading operations taking place in the platform. (iv) provide for collection of fees, charges etc., relating to registration, trading transactions taken place in the platform. (v) maintain records in electronic format of all the transactions traded in the platform; (vi) provide services relating to grading, quality certification and standardization of commodities, collateral financing, borrowing and other services required by the participants of the platform; (vii) trade only in the market fee suffered goods offered for sale by the licensed traders and in case, contrary to the above takes place, the licensee of the platform has to pay the market fee applicable to the concerned market committee; and (viii) provide the operational and working guidelines to the licensing authority and after approval of the same, function the platform accordingly.