In a significant reform aimed at promoting ease of doing business and facilitating agricultural trade, the UT Administration has abolished the precondition of bank guarantee and cash security for grant of licence to commission agents.
Punjab Governor and UT Administrator Gulab Chand Kataria has approved the proposal of the State Agricultural Marketing Board to abolish the requirement of furnishing bank guarantee and cash security by applicants seeking licences under Section 10 of the Punjab Agricultural Produce Market Act, 1961.
The State Agricultural Marketing Board has carried out amendments to Rule 17 and 21 of the Punjab Agricultural Produce Market Rules, 1962, on the pattern of the Punjab Mandi Board.
Under the amended provisions, applicants seeking 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.
Further, the amendments provide for a substantial increase in the validity period of licence issued under Section 10 of the Act. The licence validity, which was earlier limited to three years, has now been extended up 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.
