Mandi licencing process: Chandigarh administration waives security deposit, extends licence validity to 10 years

These progressive measures are expected to encourage greater participation in regulated agricultural markets, improve the ease of doing business, and strengthen the agricultural marketing framework in the Union Territory

Punjab governor and UT administrator Gulab Chand Kataria on Tuesday approved the proposal of the State Agricultural Marketing Board, UT Chandigarh, to abolish the requirement of furnishing a bank guarantee and cash security by applicants seeking licences under Section 10 of the Punjab Agricultural Produce Market Act, 1961.

Pursuant to this approval, the Board has carried out amendments in Rule 17 and Rule 21 of the Punjab Agricultural Produce Market Rules, 1962, on the pattern of the Punjab Mandi Board. (HT File)

The move is seen as a significant reform aimed at promoting ease of doing business and facilitating agricultural trade, and is likely to benefit traders, commission agents, processors, exporters, aggregators, and other businesses seeking licences to operate in agricultural markets in Chandigarh.

Pursuant to this approval, the Board has carried out amendments in Rule 17 and Rule 21 of the Punjab Agricultural Produce Market Rules, 1962, on the pattern of the Punjab Mandi Board.

Under the amended provisions, applicants for licences under the Act will no longer be required to submit bank guarantees or cash security at the time of grant of licence. This measure is expected to reduce the financial burden on traders and other stakeholders, while simplifying the licensing process.

These progressive measures are expected to encourage greater participation in regulated agricultural markets, improve the ease of doing business, and strengthen the agricultural marketing framework in the Union Territory of Chandigarh.