(1) As from the date of declaration of an area as Market Area no Local Body or other person shall, within the Market Area, set up, establish or continue, or allow to be set up, established or continued, any place for the sale, purchase, storage, weighment or processing of the specified agricultural produce, except under and in accordance with the conditions of a license granted by the Committee concerned, anything to the contrary contained in any other law, custom, usage or agreement notwithstanding ;
Provided that the provisions of this sub-section shall not apply to a producer in respect of agricultural produce produced, reared, caught or processed by him or to any person who purchases or stores any agricultural produce for his domestic consumption.
[Provided further that in case of direct purchase from farmers, to set up collection/ aggregation centers in the proximity of the production area and for the private market yard, Director, Agricultural Marketing shall be the Licensing Authority for that market area.]
(2) No person shall, in a Principal Market Yard or nay SubMarket Yard, carry on business or work as a trader, broker, commission agent, warehouseman, weighman, palledar or in such other capacity as may be prescribed, in respect of any specified agricultural produce except under and in accordance with the conditions of a license obtained therefor from the Committee concerned.
[(3) The provisions of sub-sections (1) and (2) shall not apply in relation to any specified agricultural produce pledged or hypothecated in favour of a bank as security for any amount advanced by such bank.
Explanation— For the purposes of this sub-section, the word “bank” shall have the meaning assigned to it in the Uttar Pradesh Regulation of Money Lending Act, 1976.]