2. INTRODUCTION
Under the traditional system of marketing of the agricultural products,
producer -sellers incurred a high marketing cost, and suffered from
unauthorized deductions of marketing charges and the prevalence of many
marketing malpractices.
To improve marketing conditions with a view to creating fair competitive
conditions, the increase in the bargaining power of producer sellers was
considered to be the most important prerequisite of orderly marketing.
Most of the defects of, and malpractices under, the then existing marketing
system of agricultural products have been more or less removed by the
exercise of public control over the markets i.e by the establishment of regulated
markets in the country
3. DEFINITION:
A regulated market is one which aims at the elimination of the unhealthy
and unscrupulous practices ,reducing marketing charges and providing
facilities to produce sellers in the market .
Any legislative measure designed to regulate the marketing of agricultural
produce in order to establish, improve and enforce standard marketing
practices and charges may be termed as one which aims at the
establishment of regulated markets.
The basic objective has been to create conditions for efficient performance
of the private trade ,through facilitating free and informal competition.
The basic philosophy of the regulated market s is elimination of
malpractices in the system and assignment of dominating power to the
farmers or their representatives in the functioning of markets
4. OBJECTIVES:
To prevent the exploitation of the farmers by overcoming the handicaps
in the marketing of their products
To make the marketing system most effective and efficient so that
farmers may get better prices for their produce and the goods are made
available to consumers at reasonable prices
To provide incentive prices to farmers for inducing them to increase the
production both in quantitatve and qualitative terms
To promote an orderly marketing of agricultural produce by improving
the infrastructural facilities
5. Need for market regulation
The benefits of regulation in a market vary directly in proportion to the
availability or creation of market infrastructural facilities in them
Emphasis in most of the regulated markets has remained mainly on the
construction activities( roads ,yards and building) and on collection of market
fees
Several weaknesses and malpractices are still reported in the working of the
regulated markets
Bureaucratization in the management of the regulated markets exists in most
states which resulted in continuation of several malpractices
Most of the regulated markets do not have qualified staff to manage and
movement of agricultural produce in the country is not smooth.
Most producers refrain from bringing their commodities to theseregulated
markets as they report that there is no additional benefit to them.
The regulated markets have indirectly led to monopolization of trade by the way
of granting licenses to different types of market middlemen which in turn are not
allowing others to enter in the business of market yards.
7. Shadnagar Market Functions
Based on major commodities transacted-food grain markets, fruits and vegetables market.
Method of sale-open auction or close tender
Weighment of produce
Grading of produce
Market news service
Market charges
Payment of value
Licensing of market functionaries
Supervision
Market committees
Finances
Functions of market committee
Settlement of disputes
Eliminating malpractices
Provision of amenities in the market
Farmers response regarding available facilities in regulated markets
10. Case study-commission agent
Name- Nawab khan
AGE-25 years
YEARS OF EXPERIENCE-1 year
Per day turn over -1.5 lakh
Products sold- potato,lady’s finger,onion,bitter gourd
Prices of product- bitter gourd-rs 350 /10kg, tomato- rs 800-900/25kg
Commission rate-8%
Monthly income-rs 30,000
11. observations
•Exploitation of farmers by middlemen is rampant as
the latter charge more than what is permitted that is
4%.
•Absence of proper storage facility.
•There is no proper grading or testing facility.
•The market prices fluctuate a lot
•The farmer stands at the loosing end when there is a
glut in the market.
12. RYTHU BANDU PATHAKAM
In order to prevent distress sale of Agril. Produce by the farmers in the state.
The Government had formulated a scheme for providing short term advances to farmers.
The main objective of Ryhthu Bandhu Pathakam is to make available the advance to the
needy farmers against pledge of stock so as to prevent them from resorting to distress sale
of their produce particularly during glut and giving them temporary financial
support interms of need.
Loan Amount from Rs. 1,00,000/- to Rs. 2,00,000/- underRythu Bandu Pathakam (Pledge
loan scheme to prevent farmers from distress sales) without interest up to 180 days.
