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Lines of Improvement.docx

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International Business
INTB 2200
Luming Wang

Lines of Improvement Due to various defects in the agriculture market of India the traders (middlemen) occupy a unique position and due to such a unique position, the traders succeed in manipulating the market scenario and to take home a major proportion of the price paid by the consumer. In some cases like rice nearly 48% of the prices charged to the final consumer is siphoned away by the middlemen. A very small proportion of the consumers paid up price actually goes to the producer-seller. Any program of getting the farmer-producer out of this situation necessarily envolves the breaking up of the monopolistic powers of the trader. Measures to make the producers directly connected with the marketing of the produce are the need of the hour. This may be done by creating a situation where the cultivation has greater confidence in being able to sell his produce in the market. For this it is important to protect the producer‟s interest. Further maximum share of the consumer‟s routine can be had by the producer if the conditions of orderly marketing are created. Thus a need is felt to tackle the emerging problems of agricultural marketing more resolutely and efficiently than ever before by regulating the markets. It has been observed that well regulated markets create in the minds of cultivators a feeling of confidence. The producers believe that they get a fare deal in these regulated markets. Such a scenario provide for a mood where the farmer is willing to accept new ideas and strives to increase his agricultural produce. The value of such regulated markets thus can be exaggerated but it is yet to catch on in India. If the agriculturalist in India is to receive a higher price for his produce, if the needs and preferences of the consumer are to be conveyed to the producer with a minimum amount of delay and friction, and if the large scale industries are to secure a steady and reliable supply of raw material of uniform quality, obviously the defects in machinery for marketing of agricultured produce should be remedied as quickly as possible. It would be useless to increase the output of food, it would be equally futile to setup optimum standards of nutrition, unless means could be found to move food from the producer to the consumer at a price, which represents a fair remuneration to the producer and is within the consumer‟s ability to pay. Similar considerations also apply to other agricultural products and to fish and forest products. It is therefore necessary to remove the defects in the machinery for marketing of agricultural produce. An improved system of agricultural marketing, which will secure for the cultivator a larger proportion of consumer‟s price is a „sin qua non‟ for agricultural improvement in India. The following are the various Lines of Improvements: 1. Establishment of Regulated Markets 2. The market yard; amenities and facilities 3. Use of Standard weights and measures 4. Increased Provision of Storage and Warehousing facilities 5. Improvement of transportation facilities 6. Provision of marketing news 7. Standardization of contracts and payments of sales proceed 8. Improvement in Grading and Standardization 9. Remunerative Prices for Farmers 10. Development of Co-operative Marketing 1. Establishment of Regulated Markets: (What is Regulated Markets) Most of the defects and malpractices to the disadvantage of Producer-seller can be removed by the exercise of proper control over markets and this could be done by the establishment of Regulated Markets in the country. Markets may be regulated either by local bodies or under State legislation. As a result of the rationalisation of market charges alone, the producer-seller is benefited to the tune of 3 to 5 rupees for every 100 rupees worth of produce marketed by him in these markets. Besides, there has been the reduction in the market charges varying from 28% to 69% in various markets. There has also been an increase in the number of sellers bringing their produce to these markets. Until 1944 less than 40% of the produce was taken to the markets by the producers themselves. The average percentage has now gone to 70%. What are Regulated Markets? Markets that have rules and regulations with respect to the price of the product sold, the method and the produce in which the transactions take place are other similar market operations are said to be regulated markets. These regulated markets ensure a fair and level playing field for all viz. the producer, middlemen and buyer. This is done by eliminating the malpractices at the grass root level. Establishment and Regulation of Markets in India The most effective and direct measures to improve the conditions of the markets as taken by the government through regulating the markets and
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