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
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
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
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