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Chapter 13.docx

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International Business
INTB 2200
Luming Wang

Chapter 13: Multiplicity of Market Charges: Market charges are “Those charges that are incurred by the seller or the buyer or both from the time a commodity enters the market for sale till the time the title of ownership of the goods is transferred from the seller to the buyer”. In the course of transacting sale, or a purchase a number of operations involved which cannot be attended to by sellers or the buyers. These necessarily have to be done by the respective functionaries. In order to pay these functionaries, market charges are collected from growers or buyers at prescribed rates. One of the main problems is “The multiplicity of market charges and their heavy incidence on the producer-seller.” In the absence of statutory regulations these charges are neither defined, nor are based on any service consideration and are recovered either in cash or in kind, and often both. These charges have no sanctions except usage or customs prevailing. They are always introduced in favor of the traders and the functionaries. On a sale of produce worth Rs.100, as much as 21.5% of the income of the producer goes to meet the various expenses: In the market the cultivator has to arrange with a kachcha arhatiya for the sale of his produce and in the larger markets he has to employ a broker or Dalal to get into contact with the kachcha arhatiya. For their services he has to pay some commission. In addition to the arhat paid to the arhatiya and the dalal, a number of other charges have to be incurred. Tulai has to be paid for the weighing of the produce, palledari to cover the cost of the labourers who help in unloading the cart, preparing the produce, filling the scale-pans, holding the bag open where the produce is being measured, etc. the seller has also to submit to deduction known as garda for impurities in the produce, and dalta for possible loss of weight and dana given to sweepers, watermen, and even beggars. During the measurement and in almost all the markets deductions are made from the amount due to the seller for dharmada or charity, dispensary, gaushalas, pathshalas. The objectionable feature about the market charges is that they are not only high but are also not clearly defined and specified. The charges vary from market to market and there is also no uniform practice as to charges that are borne by the seller and those that are borne by the buyer. Even within the same market the kachcha arhatiyas may charge lower rates to the village beoparis who visit the market often and have regular trade connections than to the farmer
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