Keyword(s):
Agricultural Produce, Commission Agent, Contract Farming, Manufacurer, Market Functionary, Market Proper, Market Yard, Petty Trader
Amendments appended: 12 of 2011, 32 of 2011, 7 of 2012, 29 of 2012

Madhya Pradesh Krishi Upaj Mandi
Adhiniyam, 19721
[Act No. 24 of 1973]
[18th April, 1973]
PREAMBLE
An Act to provide for the better regulation of buying and selling of agricultural produce and
the establishment and proper administration of markets of agricultural produce in the State of
Madhya Pradesh
CHAPTER I
PRELIMINARY
Section 1 – Short title, extent and commencement-
(1) This Act may be called the Madhya Pradesh Krishi Upaj Mandi Adhiniyam, 1972.
(2) It extends to whole of Madhya Pradesh.
(3) It shall come into force on such date as the State Government may, by notification,
appoint.
Section 2 – Definitions-
(1) In this Act, unless the context otherwise requires,

  1. “agricultural produce” means all produce 2
    [x x x] of agriculture, horticulture, animal
    husbandry, apiculture, pisciculture, or forest as specified in the Schedule;
    3
    [(b) “agriculturist” means a person whose source of livelihood is wholly dependent on
    agricultural produce and who cultivates land on one’s own account,–
    (i) by one’s own labour; or
    (ii) by the labour of the either spouse; or
    (iii) under the personal supervision of oneself or any member of one’s family referred
    to in sub-clause (ii) above by hired labour or by servants on wages payable in cash or
    kind but not as crop share, but does not include a trader, commission agent, processor,
    4
    [manufacturer] broker, weighman, or hammal of agricultural produce although such
    trader, commission agent, processor, 5
    [manufacturer] broker, weighman or hammal
    may also be engaged in the production of agricultural produce;]
    (c) “Board” means the Madhya Pradesh State Agricultural Marketing Board established under
    this Act;
    (d) “Bye-laws” means the bye-laws made under Section 80;

1
Received the assent of the President on 18-4-1973, first published in the M.P. Gazette (Extraordinary), dated
27-4-1973.
2 Words “whether processed or not” omitted by M.P. Act. No. 5 of 1990
3
Subs. by M.P. Act No. 11 of 1985 (w.e.f. 12-6-1985).
4
Inserted by M.P. Act No. 7 of 2012 (w.e.f. 27-1-2012).
5
Inserted by M.P. Act No. 7 of 2012 (w.e.f. 27-1-2012).
4
6
[(dd) “Collector” means the Collector of the District and includes an Additional Collector;
(e) “Commission Agent” means a person who on behalf of his principal 7
[trader] and in
consideration of a commission or percentage upon the amount involved in such transaction
buys agricultural produce and makes payment in cash, keeps it in his custody and delivers it to
the principal 8
[trader] in due course or who receives and takes in his custody agricultural
produce sent for sale 9
[within the market area or from outside the market area], sells the same
in the market area and collects payment therefor from the buyer and remits the sale proceeds
to his principal 10[trader];
11[(ee) “Contract farming” means farming of agricultural produce on contract basis by a
person on his land under a written agreement with another person to the effect that his farm
produce shall be purchased at a rate specified in the agreement;]
12[(f) “Managing Director” means the Managing Director of the Madhya Pradesh State
Agricultural Marketing Board appointed under this Act and he shall also be the
Commissioner, Mandi, Madhya Pradesh]
13[(ff) “manufacturer” means a person who manufactures agricultural produce by manual or
mechanical means;
(fff) “manufacturing with its grammatical variations and cognate expressions means the
production of articles for use from raw agricultural produce or its product, by giving them
new forms, qualities, properties or combinations, whether by hand-labour or by machinery;]
(g) “Market” means a market established under Section 4;
(h) “market area” means the area for which a market is established under Section 4;
(i) “market committee” means a committee constituted under Section 11;
(j) “market functionary” includes a broker, a commission agent, an exporter, a ginner, an
importer, a presser, a processor, 14[ a manufacturer,] a stockist, a trader, weighman,
warehouseman, hammal, surveyor and such other person as may be declared under the rules
or the bye-laws to be a market functionary;
(k) “market proper” in relation to a market yard means an area declared to be a market
proper under clause (b) of sub-section (2) of Section 5;
15[(l) “market yard or sub-market yard” in relation to a market area means a specified place
declared to be a market yard or sub-market yard under clause (a) of sub-section (2) of Section
5;]
8
[Explanation:–The expression “sub-market yard” shall include “haat bazars”;]

6
Inserted by M.P. Act No. 18 of 1979 (w.e.f. 7-6-1979).
7
Inserted by MP. Act No. 24 of 1986 (w.e.f. 21-7-1986).
8
Inserted by MP. Act No. 24 of 1986 (w.e.f. 21-7-1986).
9
Subs for “from outside the market area” by MP. Act No. 18 of 1979 (w.e.f. 7-6-1979).
10 Inserted by MP. Act No. 24 of 1986 (21-7-86)
11 Inserted by MP. Act No. 18 of 1979 (7-6-79), deleted by MP 27 of 1997 (15-6-1997) and again inserted by
MP 15 of 2003 (w.e.f. 15-6-2003).
12 Substituted by MP. Act No. 27 of 1997 (w.e.f. 15-6-1997).
13 Inserted by MP Act No. 7 of 2012 (27-1-2012)
14 Inserted by MP Act No. 7 of 2012 (27-1-2012)
15 Substituted by MP. Act No. 27 of 1997 (w.e.f. 15-6-1997).
5
16[(m) “notified agricultural produce” in relation to a market means all such produce
specified in the Schedule;]
17[(m-1) “Other Backward Classes” means the Other Backward Classes of citizens as
specified by the State Government by Notification No. F. 85-XXV-4-84, dated the 26th
December, 1984 as amended from time to time.]
18[(mm) “petty trader” means a person who does not hold more than ten quintals of various
kinds of notified agricultural produce or four quintals of any single notified agricultural
produce in stock at a time;]
Provided that he shall not purchase more than four quintals of cereals or two quintals of
oilseeds, pulses and fibre crops, in a day]; and
19[(mmm) “processing” means powdering, crushing, decorticating, husking, parboiling,
polishing, ginning, pressing, curing or any other treatment to which an agricultural produce or
its product is subjected to before final consumption;
(mmmm) “processor” means a person who processes agricultural produce by manual or
mechanical means;]
20[(mmmmm) “Scheduled Castes” and “Scheduled Tribes” shall carry the same meanings as
assigned to them under clauses (24) and (25) respectively of Article 366 of the Constitution of
India;]
21[(n) [xxx]
(o) “Secretary” means the secretary of a Market Committee;
22[(p) “trader” means a person who in his normal course of business buys or sells any notified
agricultural produce, and includes a person engaged in processing of agricultural produce, but
does not include an agriculturist as defined in clause (b) of this sub-section.]
(2) If a question arises whether any person is an agriculturist or not for the purpose of this
Act, the decision of the Collector of the district in which such person is engaged in the
production or growth of agricultural produce shall be final.
CHAPTER II
Establishment of Markets
Section 3 – Notification of intention of regulating marketing of notified agricultural
produce in specified area-
(1) Upon a representation made by local authority or by the growers of any agricultural
produce within the area for which a market is proposed to be established or otherwise, the
State Government may, by notification, and in such other manner as may be prescribed,

16 Substituted by MP. Act No. 24 of 1986 (w.e.f. 21-7-1986).
17 Inserted by MP. Act No. 27 of 1997 (w.e.f. 15-6-1997).
18 Substituted by MP. Act No. 24 of 1986 (w.e.f. 21-7-1986).
19 Substituted by MP. Act No. 18 of 1979 (w.e.f. 7-6-1979).
20 Inserted by MP. Act No. 27 of 1997 (w.e.f. 15-6-1997).
21 Omitted by M.P. Act No. 24 of 1986 (w.e.f. 21-7-1986).
22 Substituted by M.P. Act No. 26 of 1987 (w.e.f. 1-6-1987).
6
declare its intention to establish a market 23[for regulating the purchase and sale of
agricultural produce in such area] as may be specified in the notification.
(2) A notification under sub-section (1) shall state that any objection or suggestion which may
be received by the State Government within a period of not less than one month to be
specified in the notification shall be considered by the State Government.
Section 4 – Establishment of market and of regulation of marketing of notified
agricultural produce thereinAfter the expiry of the period specified in the notification issued under Section 3 and after
considering such objections and suggestions, as may be received before such expiry and
making such inquiry, if any, as may be necessary, the State Government may, by another
notification, establish a market for the area specified in the notification under Section 3 or any
portion thereof for the purpose of this Act 24[in respect of the agricultural produce specified in
the Schedule] 25[and the market so established shall be known by the name as may be
specified in that notification.]
Section 5 – Market yard and market proper-
(1) (a) In every market area,–
(i) there shall be a market yard; and
26[(ii) there may be more than one sub-market yards];
(b) 27[for every market yard or sub-market yard] there shall be a market proper.
(2) The State Government shall, as soon as may be, after the issue of notification under
Section 4, by notification,–
28[(a) declare any specified place including any structure, enclosure, open place, or
locality in the market area to be a market yard or sub-market yard, as the case may
be]; and
(b) declare in relation to [such market yard or sub-market yard as the case may be],
any specified area in the market area to be a market proper.
Section 6 – Control of marketing of notified agricultural produceOn the establishment of market under Section 4,–
(a) no local authority shall, notwithstanding anything contained in any enactment for the time
being in force, set up, establish, continue or use or allow to be set up, established, continued
or used any place in the market area for the marketing of any notified agricultural produce;
(b) no person shall, except in accordance with the provisions of this Act and the rules and
bye-laws made thereunder,–

23 Substituted by M.P. Act No. 24 of 1986 (w.e.f. 21-7-1986).
24 Substituted by M.P. Act No. 24 of 1986 (w.e.f. 21-7-1986).
25 Inserted by MP. Act No. 18 of 1979 (w.e.f. 7-6-1979).
26 Substituted by MP. Act No. 24 of 1986 (w.e.f. 21-7-1986).
27 Substituted by MP. Act No. 24 of 1986 (w.e.f. 21-7-1986).
28 Substituted by MP. Act No. 24 of 1986 (w.e.f. 21-7-1986).
7
(i) use any place in the market area for the marketing of the notified agricultural
produce; or
(ii) operate in the market area as a market functionary:
Provided that nothing herein shall apply to–
(a) the sale or purchase of such agricultural produce–
29[(i) the producer whereof is himself its seller and such sale is made in
quantity not exceeding four quintals at a time to a person who purchases it for
his domestic consumption];
(ii) which is brought by head loads;
30[(iii) which is purchased or sold by a petty trader 31[x x];
32[(iv) [Deleted]
33[(v) which is purchased by an authorised fair price shop dealer from the Food
Corporation of India, the Madhya Pradesh State Commodities Trading
Corporation or any other agency or institution authorised by the State
Government for distribution of essential commodities through the Public
Distribution System.]
(b) the transfer of such agricultural produce to a co-operative society for the purpose
of securing an advance therefrom34 [;
(c) agricultural produce notified in Part VII and VIII of the Schedule which is
purchased or sold outside the notified market yard:]
35[Provided further that the State Government may, by notification, for reasons to be
specified therein, withdraw the exemption under sub-clause (ii) of clause (a) of the
preceding proviso. The State government may also, by notification, withdraw the
exemption and issue directives for the agricultural produce purchased or sold with
respect to clause (c) of the preceding provisio, and the directives so issued would be
bound to be complied with.]
CHAPTER- III
Constitution of Market Committes
Section 7 – Establishment of Market Committee and its incorporation-
(1) For every market area, there shall be a Market Committee having jurisdiction over the
entire market area.

29 Substituted by M.P. Act No. 18 of 1979 (w.e.f. 7-6-1979).
30 Substituted by M.P. Act No. 18 of 1979 (w.e.f. 7-6-1979).
31 Omitted by M.P. Act No. 24 of 1986 (w.e.f. 21-7-1986).
32 Omitted by M.P. Act No. 27 of 1997 (w.e.f. 15-6-1997).
33 Inserted by M.P. Act No. 18 of 1979 (w.e.f. 7-6-1979).
34 Cl. (c ) ins. By M.P. 7 of 2012 [27-1-2012]
35 2
nd proviso substituded by M.P. Act 7 of 2012 for the following:-
“provided further that the State Government may, by notification, for reasons to be specified therein, withdraw
the exemption under sub-clause (2) of the clause (a) of the preceeing proviso in respet of such market area as
may be specified in the notification.”
8
(2) 36[Every Market Committee shall be a body corporate by the name specified in the
notification under Section 4.] It shall have perpetual succession and a common seal and may
sue and be sued in its corporate name and shall subject to such restrictions as are imposed by
or under this Act, be competent to contract and to acquire, hold, lease, sell or otherwise
transfer any property and to do all other things necessary for the purposes of this Act:
37[Provided that no immovable property shall be acquired without the prior permission of the
Managing Director in writing:
Provided further that no immovable property shall be transferred by way of sale, lease or
otherwise in a manner other than the manner prescribed in the rules made by the State
Government for the purpose.]
(3) Notwithstanding anything contained in any enactment for the time being in force, every
Market Committee shall, for all purposes, be deemed to by a local authority.
Section 8 – Vesting of property of local authority in Market Committee-
(1) The Market Committee may require a local authority to transfer to it any land or building
belonging to the local authority which is situated within the market yard and which
immediately before the establishment of the market was being used by the local authority for
the purposes of the market, and the local authority shall, within one month of the receipt of
the requisition, transfer the land or building, as the case may be, to the Market Committee on
such terms as may be agreed upon between them.
(2) Where within a period of thirty days from the date of receipt of requisition by the local
authority under sub-section (1) no agreement is reached between the local authority and the
Market Committee under the said sub-section, the land or building required by the Market
Committee shall vest in the Market Committee for the purposes of this Act and the local
authority shall be paid such compensation as may be determined by the Collector under subsection (5):
Provided that no compensation shall be payable to a local authority in respect of any
land or building which had vested in it by virtue of the provisions contained in the
enactment relating to the constitution of such local authority without payment of any
amount whatsoever for such vesting:
Provided further that any party aggrieved by the order of the Collector may, within
thirty days from the date of such order, appeal to the State Government.
(3) The local authority shall deliver possession of the land or building vesting in the Market
Committee under sub-section (2) within a period of seven days from such vesting and on
failure of the local authority to do so, within the period aforesaid, the Collector shall take
possession of the land or building and cause it to be delivered to the Market Committee.
(4) The order of the State Government and subject to that order, the order of the Collector
under sub-section (2) shall be final and binding on both the parties.

36 Substituted by MP. Act No. 18 of 1979 (w.e.f. 7-6-1979).
37 Substituted by MP. Act No.15 of 2003 (w.e.f. 15-6-2003). Prior to substitution it read as under : “Provided
that no immovable property shall be acquired, transferred by way of sale, lease or otherwise without the prior
permission of the Managing Director in writing.”
9
(5) The Collector shall fix the amount of compensation for the land or building having regard
to–
(i) the annual rent for which the building might reasonably be expected to be let from
year to year;
(ii) the condition of building;
38[(iii) the amount of compensation paid by the local authority for the acquisition of
such land and the present market value of the land; and
(iv) the cost or the present market value of any building erected or other work
executed on the land by local authority.]
(6) The compensation fixed under sub-section (5), may, at the option of the Market
Committee, be paid in lump-sum or in such number of equal annual installments not
exceeding ten as the Collector may fix. Where the compensation is paid in installments, it
shall carry interest at the rate of six percent, per annum which shall be payable along with the
installment.
Section 9 – Acquisition of land for Board or Market Committee-
(1) When any land within the market area is required for the purposes of this Act and the
Board or the Market Committee is unable to acquire it by agreement the State Government
may, at the request of the Board or the Market Committee, as the case may be, proceed to
acquire such land under the provisions of the Land Acquisition Act, 1894 (No. 1 of 1894) and
on the payment of the compensation awarded under that Act, by the Market Committee and of
any other charges incurred by the State Government in connection with the acquisition, the
land shall vest in the Board or the Market Committee, as the case may be.
39[(2) Any land which has been acquired for and vests in the Board or Market Committee
under sub-section (1) shall be transferred by way of sale, lease or otherwise only in
accordance with the rules made by the State Government for the purpose.]
40[(3) Nothing contained in the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959),
and rules made thereunder in so far as they relate to diversion of land, revision of land
revenue consequent on the change in the use of land from agriculture to any other purpose and
other matters incidental thereto, shall apply to land acquired by the Market Committee under
subsection (1) or acquired by transfer, purchase, gift or otherwise and used for the purpose of
establishment of a market yard or a sub-market yard :
Provided that the premises used for market yard, sub-market yard or for the purpose of
the Board shall not be deemed to be included in the limits of the Municipal
Corporation, Municipal Council, Notified Area, Gram Panchayat or a Special Area
Development Authority, as the case may be.]
Section 10 – Appointment of Officer-in-Charge pending constitution of first Market
Committee-

38 Substituted by M.P. Act No. 24 of 1986 (w.e.f. 21-7-1986).
39 Substituted by M.P. Act No. 15 of 2003 (w.e.f. 15-6-2003). Prior to substitution it read as under :
40 Substituted by M.P. Act No. 24 of 1986 (w.e.f. 21-7-1986).
10
41[(1) When a market is established for the first time under this Act, the [Managing Director]
shall, by an order, appoint a person to be the Officer-in-Charge 42[for a period not exceeding
two years.] The Officer-in-Charge shall, subject to the control of the [Managing Director]
exercise all the powers and perform all the duties of the Market Committee under this Act:
Provided that in the event of death, resignation, leave or suspension of the Officer-inCharge a casual vacancy shall be deemed to have occurred in such office and such
vacancy shall be filled, as soon as may be, by appointment of a person thereto by the
43[Managing Director] and until such appointment is made a person nominated by the
Collector shall act as an Officer-in-Charge:
Provided further that if the Market Committee is constituted before the expiration of
the period aforesaid the Officer-in-Charge shall cease to hold office on the date
appointed for the first general meeting of the newly constituted Market Committee.
(2) Any Officer-in-Charge appointed under sub-section (1), may at any time be removed by
the [Managing Director] who shall have power to appoint another person in his place.
(3) Any person appointed Officer-in-Charge under sub-section (1) shall receive from the
Market Committee Fund for his services such pay and allowances as may be fixed by the
[Managing Director].
(4) The Officer-in-Charge appointed under sub-section (1) shall, notwithstanding the
expiration of his term thereunder, continue to hold office or function till the date appointed for
the first general meeting under 44[sub-section (1) of Section 13] of the newly constituted
Market Committee.]
Section 11 – Constitution of Market Committee45[(1) A Market Committee shall consist of,–
(a) the Chairman elected under Section 12;
(b) ten representatives of agriculturists possessing such qualifications as may be
prescribed chosen by direct election from the constituencies of a market area in
accordance with the provisions of this Act and the rules made thereunder;
Explanation:–The expression “representatives of agriculturists” in this clause shall not
include an agriculturist of the market area if any relative, that is to say wife, husband,
father, mother, brother, sister, son, daughter, father’s father, father’s brother, father’s
sister, mother’s father, mother’s brother or sister, father’s brother’s son or daughter,
mother’s sister’s son or daughter, brother’s son or daughter, sister’s son or daughter,
brother’s son or daughter, sister’s son or daughter, son’s wife, daughter’s husband,
sister’s husband, wife’s sister’s husband, father’s sister’s husband, mother’s sister’s
husband, son’s son or daughter, daughter’s son or daughter, wife’s father or mother,

41 Substituted by M.P. Act No. 8 of 1994 (w.e.f. 16-1-1994).
42 Substituted by M.P. Act No. 27 of 1997 (w.e.f. 15-6-1997).
43 Substituted by M.P. Act No. 27 of 1997 (w.e.f. 15-6-1997).
44
Substituted by M.P. Act No. 27 of 1997 (w.e.f. 15-6-1997).
45 Substituted by M.P. Act No. 27 of 1997 (w.e.f. 15-6-1997).
11
wife’s brother or sister, wife’s brother’s son or daughter, wife’s sister’s son or daughter,
husband’s brother, husband’s brother’s wife, husband’s brother’s son or daughter of
such agriculturist holds a trader’s licence from any Market Committee of the State.
(c) one representative of traders possessing such qualifications as may be prescribed,
elected by and from amongst the persons holding licence from the Market Committee
for a period of two successive years as traders or owners or occupiers of processing
factories under this Act :
Provided that in the case of a Market Committee established for the first time under
Section 10, the qualifying period of holding licence from such Market Committee
shall be six months:
46[Provided further that no person shall be qualified to be a representative of traders of
Market Committee if he has more than two living children one of whom is born on or
after 26th January, 2001 :
Provided also that any elected representative of trader shall become disqualified to
hold such office if on or after 26th January, 2001 a child is born which increases the
number of his children to more than two:]
Provided 47[also] that no person shall be a voter of more than one Market Committee
at a time:
Provided also that no person shall be voter unless,–
(i) he has completed the age of 18 years.
(ii) he was not a defaulter of the Market Committee.
Explanation.–The expression “defaulter” shall include a person who has
defaulted in the payment of Nirashrit Shulk recoverable by the Market
Committee in accordance with the provisions of the Madhya Pradesh
Nirashriton Avam Nirdhan Vyaktiyon Ki Sahayata Adhiniyam, 1970 (No. 12
of 1970);
(d) Such member of the State Legislative Assembly and House of the People in whose
constituency at least fifty per cent of population resides in rural areas that is outside
the local limits of a Municipal Corporation, Municipal Council or Nagar Panchayat:
Provided that in a constituency where more than one Market Committee exists 48[the
member of the house of people shall have to give his option], before the election, one
of the Market Committees in which he wishes to become a member:
49[Provided further that the member of the House of the People or the member of the
State Legislative Assembly who is a member of the Market Committee may nominate

46 Inserted by M.P. Act No. 21 of 2000.
47 Substituted by M.P. Act No. 21 of 2000, for the word “further”.
48 Substituted by M.P. Act No. 31 of 2000 (w.e.f. 5-2-2001), for “the member shall have to give his option”.
12
his representative who possesses such qualification as may be prescribed for the
purpose of attending the meeting of the Market Committee;]
(e) One representative of the Co-operative Marketing Society functioning in the
market area who shall be elected by the Managing Committee of such society:
Provided that if more than one such society functions in the market area, such member
shall be elected by all the members of the Managing Committees of such societies:
Provided further that nothing in this clause shall apply if the Managing Committee of
any society stands superseded under the provisions of the Madhya Pradesh Cooperative Societies Act, 1960 (No. 17 of 1961);
(f) An Officer of the Agriculture Department of the State Government to be nominated
by the Collector;
(g) One representative of the weighmen and hammals operating in the marketing area
holding license from the Market Committee to be nominated by the Chairman;
(h) One representative of the District Central Co-operative Bank who shall either be
the Chairman of such Bank or such other member of the Managing Committee
thereof, as may be nominated by the Chairman of such Bank;
(i) One representative of the District Land Development Bank who shall either be the
Chairman of such Bank or such other member of the Managing Committee thereof, as
may be nominated by the Chairman of such Bank;
“Provided further that the member of the Legislative Assembly shall be a special
invitee in all other Market Committees in his constituency.”
(j) One representative of the Gram Panchayat or Janpad Panchayat or Zila Panchayat
which falls within the jurisdiction of the market area nominated by the Chairperson of
the Zila Panchayat:
Provided that in Market Committee situated in the District headquarters the
representative shall be nominated from amongst the members of the Zila panchayat
only.
(2) All members under sub-section (1) shall have a right to vote except the member nominated
under clause (f) and the special invitees under the second proviso to clause (d) of sub-section
(1).
(3) The State Government may make rules for the preparation of voters’ list and conduct of
elections.
(4) If the electorate under clause (b) or (c) of sub-section (1) fails to elect a representative, the
Collector shall nominate the representative of the agriculturists or traders, as the case may be.

49 Substituted by M.P. Act No. 31 of 2000 (w.e.f. 5-2-2001).
13
(5) Every election and nomination of a member shall be notified by the Collector in the
official gazette.]
Section 11A – Division of market area for constituencies and reservation of seats50[(1) The Collector shall by notification in the local Newspaper divide a market area into as
many numbers of constituencies equal to the number of the representatives of the
agriculturists to be chosen from that area.
(2) Seats shall be reserved for Scheduled Castes and Scheduled Tribes in every Market
Committee and the number of seats so reserved shall bear as nearly as may be the same
proportion to the total number of seats to be filled in that Market Committee as the population
of Scheduled Castes or Scheduled Tribes in that market area bears to the total population of
that area and such seats shall be allotted to the constituencies in the prescribed manner.
(3) Where the total number of seats belonging to Scheduled Castes and Scheduled Tribes in a
market area is fifty per cent or less than fifty per cent, twenty-five per cent of total number of
seats shall be reserved for Other Backward Classes.
(4) Not less than one-third of the total number of seats reserved under sub-sections (2) and (3)
shall be reserved for women belonging to Scheduled Castes or Scheduled Tribes or Other
Backward Classes, as the case may be.
(5) Not less than one-third (including the number of seats reserved for women belonging to
Scheduled Castes, Scheduled Tribes and Other Backward Classes) of the total number of seats
shall be reserved for women and such seats shall be allotted by the Collector to different
constituencies in the prescribed manner.
Section 11B – Qualifications to vote and to be a representative of agriculturists51[(1) Every person–
(a) whose name is entered as Bhumiswami in the village land records;
(b) who ordinarily resides in the market area;
(c) who has completed the age of 18 years; and
(d) whose name is included in the voters’ list prepared under the provisions of this Act
and the rules made thereunder; shall be qualified to vote at the election of a
representative of agriculturists :
Provided that no person shall be eligible to vote in more than one constituency.
Explanation.–The word “Bhumiswami” shall have the same meaning as assigned to it
in the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959).
(2) No person shall be qualified to be elected as a representative of agriculturists unless,–
(a) his name is included in the list of voters of the market area;
(b) he is an agriculturist;
(c) he is otherwise not disqualified for being so elected :
52[(cc) he has not more than two living children one of whom is born on or after 26th
January, 2001:

50 Substituted by M.P. Act No. 27 of 1997 (w.e.f. 15-6-1997).
51 Cl. (a) substituted by M.P. Act No. 32 of 2011 [6-9-2011], which was as under:-
“(a) whose name is entered as Bhumiswami in the village land records.”
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Provided that any elected representative of agriculturists shall become disqualified to
hold such office if on or after 26th January, 2001 a child is born which increases the
number of his children to more than two.]
(3) A person shall be disqualified for being a representative of agriculturist if he is
disqualified for being an office bearer of a Panchayat under Section 36 of the Madhya Pradesh
Panchayat Raj Adhiniyam, 1993 (No. 1 of 1994).
(4) No person shall be eligible for election from more than one market committee or
constituency as the case may be.]
Section 12 – Election of Chairman and Vice-Chairman53[(1) The Chairman shall be chosen by direct election by the persons qualified to vote for the
election of representatives of the agriculturists and traders in the prescribed manner:
Provided that no person shall be eligible for election as Chairman unless he is qualified to be
elected under sub-sections (2) and (3) of Section 11-B.
(2) The offices of the Chairman shall be reserved for the Scheduled Castes and Scheduled
Tribes and the number of offices so reserved shall bear, as nearly as may be, the same
proportion to the total number of such offices in the State as the population of the Scheduled
Castes and Scheduled Tribes in the States bears to the total population of the State and these
offices shall be allotted, by the Managing Director to the Market Committees in the prescribed
manner.
(3) Twenty-five per cent of the total number of offices of Chairman shall be reserved for
Other Backward Classes and such seats shall be allotted in the prescribed manner by the
Managing Director, to such Market Committees, which are not reserved for Scheduled Castes
or Scheduled Tribes.
(4) Not less than one-third of the total number of offices of Chairman reserved under subsections (2) and (3) shall be reserved for women belonging to Scheduled Castes or Scheduled
Tribes or Other Backward Classes, as the case may be.
(5) Not less than one-third (including the number of offices) reserved for women belonging to
the Scheduled Castes and Scheduled Tribes and Other Backward Classes of the total number
of offices of Chairman in the State shall be reserved for women and such offices shall be
allotted by the Managing Director to different Market Committees in the prescribed manner.
(6) No person shall be eligible to contest election simultaneously for office of the Chairman
and Member.
(7) If any market area fails to elect a Chairman fresh election proceedings shall be initiated to
fill the office within six months:
Provided that further proceedings for constituting the Market Committee shall not be stayed
pending the election of Chairman:
Provided further that pending the election of Chairman under this subsection the ViceChairman shall discharge all the functions of the Chairman.