(1) In respect of commodity which requires laboratory testing for quality assessment, the applicant/ authorised packer shall , with the approval of Agricultural Marketing Adviser or any other officer of the Directorate or State Government authorised by the Agricultural Marketing adviser in this behalf, either-
(a) set up his own laboratory as per prescribed norms, or
(b) have access to an approved State Grading Laboratory or Cooperative/Association Laboratory or a Private Commercial Laboratory.
(2) Private commercial laboratory shall be accorded approval for grading and marking of an article under provisions of the Act;
Provided further that the owner of the private commercial laboratory executes a surety bond or gives security deposit for an amount as may be prescribed by the Central Government.
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(3) Approval of a laboratory, whether packer’s own laboratory, or State grading laboratory , or Cooperative/Association laboratory, or private commercial laboratory, may be withdrawn by the competent authority if there are sufficient reasons to believe that the grading and marking is not correctly done and or that the rules and instructions issued thereof are not followed provided that a 14 days' notice, in writing, shall be given to the owner of the laboratory, and an opportunity given for showing cause why the approval should not be withdrawn.