The agriculture produce in Chandigarh is being regulated under the Punjab Agriculture Produce Markets Act, 1961. The premble of the act is "An act to consolidate and amend the law relating to the better regulation of the purchase, sale, storage and processing of Agricultural produce and the establishment of the markets for Agricultural produces in the state of Punjab". The primary object of Chandigarh Sate Agricultural Marketing Board and Market Committees is to establish modern Markets for efficient marketing of agricultural produce by providing modern facilities in the mandis and to enforce the provisions of the Act, Rules Bye-laws framed there under. Chandigarh State Agricultural Marketing Board a body corporate as well as a local authority by the name of the State Agricultural Marketing Board, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire and hold property and shall by the said name sue and be sued. Whereas Market Committee is to enforce the provisions of this Act, Rules and Bye-Laws made there under in the notified market area and, when so required by the Board, to establish a market therein providing such facilities for persons visiting it in connection with the purchase, sale, storage, weighment and processing of Agricultural produce. The Board may from time to time direct these market committees to control and regulate the admission to the markets. Market Committee is service rendering agencies and their main source of income is market fee. The existing rate of market fee on purchase or sale transactions of all agricultural produce specified in the schedule is 2% of the sale value. Market Committee, Chandigarh is providing sanitation and security arrangements in the Grain Market and Fruit/Vegetables Market Sec. 26 Chandigarh. There services are entrusted to private contractors after calling the open tenders. The tenders for there services are called every year. The Chandigarh State Agricultural Marketing Board has taken many important decisions which would further strengthen the agricultural marketing system in the State and bring number of benefits to rural economy in the State .