Definition of regulated market:
is wholesale market where buying and selling is regulated and controlled by the state
government through the market committee.
It aims at the
elimination of unhealthy and unscrupulous practices reducing marketing charges and
providing facilities to producers and sellers in the market. The poor standards of primary
and secondary markets where producer convert their produce into cash. The prevalence of
various malpractice's such as short-weights, excessive market charges, unauthorized
deduction, adulteration of produce and the absence of machinery to settle disputes between
sellers and buyers were recognized as the main hindrances in agricultural marketing. These
defects and malpratices can be recover by the establishment of regulated marketing there
country may be regulated either by local bodies or under state legislation was suggested
first in 1928 by the Royal commission on Agriculture. The movement of regulation of market
gained momentum only after 1930. The Bombay Agricultural produce market act of 1939 was
passed in respect all agriculture produce Viz., cereals, fibres and fruits etc. Regulated
markets usually handle tobacco, cotton, groundnut, grains, coconuts, arecanuts, potatoes
and turmeric etc.
Main features of regulated markets:
Market committee is comprised of representatives from different sectors of society that is
farmers, traders, government local bodies and co-operative. In general it is observed that
market committee consists of 15 members 10 from farmers 3 from traders and 1 each from the
government and local bodies.
AREA OF OPERATION:
The concerned state government notifies that its intention to regulate trade practices in
specified area such an area of operation is laid down either as a municipal limit or
district or even it may be a region. In Maharashtra area of operation of each regulated
market restricted to one taluka.
METHODS OF SALES: In
regulated market the sale of agril. Produce is undertaken either by open auction or by
close tender method these sales method ensure a fair and competitive price for the produce
and prevent the cheating of farmers by market functionaries. By these methods, the sale is
carried out under the supervision of an official of the market committee.
LICENSING OF MARKET
FUNCTIONARIES: All the market functionaries including traders working in the regulated
market have to obtain a licence from the market committee after paying the prescribed fee
to carry on their business, the licensed traders have to keep proper record and maintain
accounts in accordance with the buy-laws of the market committee.
MARKET LEVIES OR
FEES: Growers and traders have to pay market fees which are calculated on the basis of
value of volume of a commodity bought and sold in the markets. Sometimes it may be based
on cartload or truckload.
To meet its
administrative expenditure and in order to create infrastructure facilities in the market
area the market committees gets funds from the following sources:
Market fees on the
produce brought for the sales in the market yard.
License fee, renewal
fee of market middlemen functioning in the area.
DISPUTES: Disputes arising between producer seller and traders by reason of the quality of
the producer, accounts and deductions of unauthorized charges are solved by the
sub-committee of the market committee this avoid the legal complications and unnecessary
Advantages of regulated markets: -
Market charges are
clearly defined and specified.
Market practices are
regulated and undesirable activities are brought under control.
Correct weighment is
ensured by periodical inspection and verification of scales and weights.
arrangements for the settlement of disputes is provided.
Reliable and up to
date market news are made available to the farmers.
standards and standard terms for buying and selling are conveniently enforced.
of arrivals, stocks, prices are maintained.
like shades for the sale of produce, space for parking carts, drinking water facilities
and cisterns of cattle, rest houses, grading and warehousing facilities are provided.
Open auction method
is strictly followed.
agricultural improvement is more conveniently carried out. Taking over all picture
regulated markets have produced a whole some effect on marketing structure and have
generally raised the efficiency or marketing at the primary level.
Organization of regulated markets and constitution of market committee
The primary object of
regulating the market is to safeguard the interest of the producer sellers raise the
standards of the local Markets where the first exchange of the goods takes place. With a
view to achieve the object in each of the regulated markets. Market committees are
established consisting of the representatives of the growers, traders, local bodies,
sellers, co-operative shops and the state government nominees. Producers are generally in
the majority on these committees. The market committee should consist of 12 to 18 members
depending on the size of the market and other considerations, which are responsible for
utilizing the fund for
- Maintenance and improvement of the
markets and its buildings.
- Maintenance of standards of weights and
- Pay and pension of the staff
- Payment of interests of loans.
- Collection and dissemination of market
- Propaganda for agricultural