Section 65(5) in Karnataka Agricultural Produce Marketing Act 1966
(5)[ No market fee shall be payable for a period of five years four years and three years from the date of the commencement of the Karnataka Agricultural Produce Marketing (Regulation and Development) (Amendment) Act 2011 in case of new agricultural produce processing industries and existing processing industries who undertake expansion/modernization/ diversification in Zone-1 2 and 3 respectively as identified under Karnataka New Industrial Policy 2009-2014 published in Government Order No. CI/223/SPI/2008 dated 28.02.2009 on the purchases of agricultural produce as specified in SI. No.II III IV VI VII IX and X of the Schedule appended to the Act directly from farmers subject to the following conditions namely:-(i)A minimum investment of fifty percent of the earlier investment on fixed assets has to be made under expansion/modernization/diversification projects.(ii)The increased production compared to the average of the production made in the previous three years qualifies for exemption under expansion program.(iii)Raw material used for production of new product other than the existing one shall be considered for diversification programme.(iv)The existing units which have replaced all the old machineries with the modern machineries under the modernization programme shall be exempted from payment of market fee on the total raw material purchases for processing capacity only.(v)a certificate issued by the Director of Industries and commerce Government of Karnataka or his nominee certifying that he has fulfilled the above conditions and he is eligible for exemption of fee shall be produced.]
