The Himachal Pradesh Agricultural & Horticultural Produce Marketing (Development & Regulation) act, 2005. (As assented to by the Governor on 25th May, 2005) an act to re-enact the law to provide for improved regulation in marketing of agricultural produce, development of efficient marketing system,promotion of agri processing and agricultural exports, establishment and proper administration of markets for agricultural produce in the State of Himachal Pradesh and to ensure level playing field for competitive markets to operate through setting of minimum standards for facilities, procedures and systems, thereby promoting the establishment of well administered and efficient infrastructure for marketing of agricultural produce in and from the State of Himachal Pradesh.

Agricultre Contributes

Agriculture contributes nearly 45% to the net state domestic product. It is the main source of income as well as employment in Himachal. About 93% of the state population depends directly upon agriculture.However, agriculture in the state suffers from certain limitations, especially in the production of food grains. One of these reasons is that the area under cultivation can't be extended to an appreciable extent.Also,reclamation of land on slopes is not economical and increases environmental degradation. The state can profit more by cultivating cash crops as per the agro-climatic conditions.The main cereals grown in the state are wheat, maize, rice and barley. Kangra, Mandi and the Paonta valley of Sirmaur (to some extent) are the major producers of the first three cereals, while barley is mostly cultivated in Shimla.