Stating that the purchase of foodgrains for feeding its own poultry does not constitute marketing or commercial trading by poultry farms, the High Court of Karnataka has said that such farms are not required to take a licence under the Karnataka Agricultural Produce Marketing (Regulation) Act, 1966, to purchase foodgrains from the APMC yards.
The licensing requirement under the APMC Act is aimed at regulating the trade of agricultural produce, and it is not intended to cover purchases made for personal agricultural use, such as feeding birds in poultry farms, operation of which does not involve the resale or commercial distribution of foodgrains, and hence, insistence on obtaining licence is erroneous, the court said.
Justice Sachin Shankar Magadum passed the order while quashing the notices issued by officials of the APMC to Sri Lakshmi Poultry Complex in Hagaribommanahalli, Ballari district, and Kittur Chennamma Poultry Farm, Kittur, Belagavi district. The notices were issued asking the petitioner-farms to obtain licence from the APMC and submit accounts of their trade.
Pointing out that the activity of poultry farming has been considered an agricultural activity under the provisions of the Karnataka Land Reforms Act, which has the backing of judicial pronouncements, the court said the APMC Act applies to entities that engage in the buying and selling of agricultural products within the regulated markets, such as traders, commission agents, and others involved in commercial activities.
As petitioner-farms are not operating as a trader, processor, or warehouseman, nor are they involved in any commercial marketing activity in a regulated market, the court said the authorities cannot insist the farms to obtain a licence under the APMC Act as the petitioners are buying foodgrains to feed their birds in the farm and not for commercial distribution or resale.
The court also pointed out that Section 8(b)(ii) of the APMC Act explicitly exempts purchasers, who buy agricultural produce for domestic consumption, which in the present case extends to agricultural use like feeding poultry in farms. “Therefore, insisting on a licence for the petitioners, who are purchasing foodgrains for personal agricultural use, is an unlawful overreach by APMC officials,” the court said and added that the act of the officials asking the petitioner-farms to obtain licence amounts to abuse of power.
Source: The Hindu
