CHAPTER III REGULATED MARKETS: AN OVERVIEW. India is an agrarian economy. About 70 per cent of people are

Transcription

1 CHAPTER III REGULATED MARKETS: AN OVERVIEW 3.1. Introduction India is an agrarian economy. About 70 per cent of people are dependent on agriculture for their basic income. Earlier the farmers were concerned about the sale of their produce due to low quality. The Royal Commission on Agriculture found that there weren t enough marketing activities carried on by the farmers and suggested the formation of regulated markets and accordingly various market committees were incorporated. Regulated markets aim at the development of the marketing structure to ensure remunerative price to the farmers; reduce non-functional margins of the traders and commission agents; and narrow down the price spread between the producer and the consumer. To achieve these objectives, the government has made comprehensive and rapid expansion of regulated marketing systems. Besides, the regulated marketing system has proved a good source of generating income for the marketing boards and for use in rural infrastructure. The first attempt for the regulation of markets in India dates back to 1897, when the Berar Cotton and Grain Markets Law was passed to purge marketing of many of its abuses. Since then various Acts, rules and laws have been passed, and many committees and commissions

2 82 have been appointed for facilitating and promoting the growth of regulated markets all over the country Regulated Markets 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 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 malpractices can be recovered 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 The Bombay Agricultural Produce Market Act of 1939 was passed in respect of all agriculture produces viz., cereals, fibres, fruits, etc. Regulated markets are established under the provisions of the Agricultural Produce Marketing Committee Act of state governments. The establishment of regulated markets helped in creating orderly and transparent marketing conditions. Main features of regulated markets are as follows.

3 83 Market Committee: Market committee comprises representatives from different sectors of society that is farmers, traders, government local bodies and co-operatives. In general, a 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. Methods of Sales: The sale of agricultural produce is undertaken either by open auction or by close tender method. These sales methods 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: The market functionaries of the regulated market have to obtain license from the market committee to carry on their business. The licensed traders have to keep proper record and maintain accounts in accordance with the bylaw of the market committee. Market Levies or Fees: Farmers 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.

4 Regulated Markets in India Agriculture is a way of life and a tradition, which for many centuries has shaped thoughts, outlook, culture and the economic life of Indians. It will continue to be central to all strategies of planned socio-economic development of the country. Today, agriculture and allied sectors account for 22 per cent of GDP and provide more than 60 per cent of rural employment with more than 142 million hectares of cultivated land. India ranks second in terms of total arable land as well as irrigated area in the world. Since independence Indian agriculture has made rapid strides because of multidisciplinary and multi-institutional approaches. India achieved selfsufficiency in food grains production, largest producer of fruits, coconut, milk and second largest producer of vegetables, rice and wheat. Unfortunately, pattern of growth of agriculture has brought in its wake uneven development across regions and crops as also across different sections of farming community. It is characterized by low levels of productivity and degradation of natural resources, which could be partly due to capital inadequacy, lack of infrastructural support and demand side constraints. Unfavourable price regime and low value addition also contributed their might which led to migration from rural areas. This situation is likely to be exacerbated in the wake of integration of agriculture trade in global system. Establishment of an agrarian economy which

5 85 ensures food and nutrition to India s billion people, raw materials for expanding industrial base, surplus for exports and a fair and equitable reward system for farming community will be the mainstay of reforms in the agriculture sector. During pre-independence period, Government of India had too little interest in the problems of agriculture. They rather concentrated on increasing the revenue and looking after law and order situation and judicial administration in the country. The great famine of 1866, which hit badly the Provinces of Assam and Bengal, forced the government to draw its attention to the need of developing agriculture as a means of averting famines and protecting people from starvation. The history of regulated markets in India was started, when the British government felt the necessity of supplying the pure cotton at reasonable price to the textile mills at Manchester. The Karanjip Cotton Market was established in 1886 as a regulated market under the first legislation in India was the Barer Cotton and Grain Market Act of In 1927, the Government of Bombay enacted the Bombay Cotton Markets Act. This Act provided for the establishment of markets for cotton, constitution of market committee, notification of cotton, the levying of market fee, use of authorized weights and measures and appointment of dispute subcommittee for settling dispute between the farmer-seller and traderbuyers. During pre-independence period, the first Act was passed in 1897 in

6 86 the name of Berar Cotton and Grain Markets Law. 1 Then after that many Acts have come like the India Cotton Committee Act, The government of India appointed the Royal Commission on Agriculture in 1928 and it submitted its report in The Indian Central Banking Enquiry Committee, 1931 endorsed the recommendations of the Royal Commission and offered some suggestions for the organization and improvement of agricultural marketing in India. The Hyderabad Agricultural Markets Act was passed in 1930, followed by the Central Provinces Agricultural Produce Act in 1935, for all kinds of produces except cotton. The Bombay Agricultural Produce Market Act was passed in 1939, replacing the Bombay Cotton Markets Act, 1933 to regulate the buying and selling of commercial crops like cotton, groundnut and tobacco. Regulated markets were established in Tiruppur in 1936 for cotton and in Tindivanam for groundnut in 1939, both in former Madras state. For cotton, a regulated market was established in Baroda state in These were the pioneer regulated markets in India. The outbreak of Second World War checked the progress of market regulation activities in India. At the end of 1940 there were 135 regulated markets in India which increased to 286 by The growth of regulated markets in India showed a remarkable progress since the beginning of the planning era (1951). The 1 Ghosh, M.M (2002). Growth and Development of Regulated Markets in Tripura, in Prasad Jadish (Ed.), Encyclopedia of Agricultural Marketing, Delhi: Mittal Publications, p.92.

7 87 Planning Commission laid emphasis on the development of regulated markets throughout the country. In the post-independence period, the Five Year Plans visualized the importance of regulation of new markets through out the country. The First Five Year Plan pioneered economic developments, including agricultural development of the country where importance of regulated markets to remove defects of agricultural marketing was recognized and so it made modest target of organizing 184 markets and passing of the Agricultural Produce Markets Acts in different states. The Second and Third First Five Plans aimed at organizing 245 and 267 markets respectively. As a result, there were 982 regulated markets in country with 506 submarket yards, totaling 1488 markets by March The Third Five Year Plan contemplated the regulation of markets in different parts of the country. But, in that period there were many draw backs in the markets, like lack of space, poor lay-out, unfair trade practices, inadequacy of marketing facilities, etc. From the foundation laid by the Third Five Year Plan the regulated markets start to develop to give security to the cultivators regarding better prices, weighment and freedom from illegal deductions. After the Third Five Year Plan the socio-economic conditions of the country was facing a number of favourable and unfavourable circumstances many states entered into the new phase of its development in market regulation. The special emphasis was given on regulated markets in the Sixth Five Year Plan. These basic points of this Plan on regulated markets are

8 88 further expansion of the regulated market system in terms both more markets and commodities to be brought within the scope of regulation; strengthening the arrangements for enforcement/and inspections to ensure a regulated system of open auctions, trading practices and margins of intermediaries; and development of rural markets and establishment of rural markets in the areas where such a facility is not available with in a reasonable distance. The Eighth Five Year Plan is more conscientious to the need for regulated markets. It notes that regulated markets can be used as an instrument of regeneration of the whole rural infrastructure with a view to achieve the objectives. The Plan provides the following programmes: comprehensive and rapid expansion of the regulated marketing system having organic links with the primary markets; the establishment of linkage with major consuming centres; the inclusion of facilities for grading and for monitoring of prices; utilizing regulated markets for the generation of the resources by levying a surcharge and associating panchayats in this task; and the development of regulated markets in command areas and terminal markets especially in areas where commercial crops like cotton, jute, tobacco and important non-traditional crops are produced and sold in weekly markets. The National Commission on Farmers, 2004 has recommended that the facility of regulated markets should be available to the farmers within the radius of 5 km. There were 286 regulated market yards at the time of independence and were increased to 7249 markets in

9 These consist of 2433 principal markets and 4816 sub-yards. The number of regulated markets is relatively more in geographically large states viz. Andhra Pradesh, Karnataka, Maharashtra, Madhya Pradesh, Uttar Pradesh and West Bengal. Plan-wise number of regulated markets in India is as follows: TABLE 3.1 Plan-wise Number of Regulated Markets in India S.No. Plan Plan Period No. of Regulated Markets 1 First Five Year Plan Second Five Year Plan Third Five Year Plan Fourth Five Year Plan Fifth Five Year Plan Annual Plan Sixth Five Year Plan Seventh Five Year Plan Annual Plan Eighth Five Year Plan Ninth Five Year Plan NA 12 Tenth Five Year Plan NA 13 Eleventh Five Year Plan ,139 Source: Sontakki, C.N (2008). Marketing Management, Ludhiana: Kalyani Publishers, p. 631.

10 90 Table 3.1 shows the Plan-wise number of regulated markets in operation in India. During the First Five Year Plan, there were 470 regulated markets in operation, and then it has been increased to 720 and 1600 markets during the Second Five Year Plan and Third Five Year Plan respectively. There shows an increasing trend in the number of regulated markets from Fourth Five Year Plan onwards. The number of regulated markets during Fourth Five Year Plan, Fifth Five Year Plan, and Sixth Five Year Plan period was 2640, 4000 and 5895 respectively. There were 6275 regulated markets during the Seventh Five Year Plan and this number was increased to 7100 regulated markets during the Eighth Five Year Plan period. At the end of the Eleventh Five Year Plan, 7139 regulated markets were in operation in India. TABLE 3.2 Number of Regulated Markets in Operation in India as on State/UTs Principal Regulated Markets Sub- Market/Market Yards Total Andhra Pradesh Arunachal Pradesh Assam Bihar (APMR Act Repealed) Jharkhand Goa Gujarat Haryana

11 91 Himachal Pradesh Karnataka Madhya Pradesh Chhattisgarh Maharashtra Meghalaya 2-2 Nagaland 18 Nil 18 Orissa Punjab Rajasthan Sikkim 1-1 Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal Chandigarh 1-1 Delhi Puducherry Total Source: Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India. Table 3.2 shows the state-wise formation of regulated markets during In India, there were 7249 regulated markets during The number of regulated markets is relatively more in geographically larger states viz. Andhra Pradesh, Karnataka, Maharashtra, Madhya Pradesh, Uttar

12 92 Pradesh and West Bengal. These six states account for 55.15% of total regulated markets in the country. In Andhra Pradesh and Maharashtra states, the number of regulated markets in operation are more than 875 hundred i.e. 905 in Andhra Pradesh and 880 in Maharashtra. Number of regulated markets in operation in West Bengal and Uttar Pradesh are 687 and 605 respectively. Madhya Pradesh has 571 regulated markets. Less number of regulated markets is in operation in the states of Chandigarh (1), Sikkim (1) and Meghalaya (2) Regulated Markets in Tamil Nadu Agriculture is the prime profession that helps in the overall development of the economy of Tamil Nadu. Various steps taken by the government to increase the investment in agriculture, agri-based technologies, marketing development, planning approach, etc. have brought substantial improvement in production in spite of seasonal vagaries like flood and drought. Agricultural marketing has become the key driver of the agriculture sector today due to new market realities posed by the increasing accent on globalization, liberalization and privatization of the economy. The Department of Agricultural Marketing functioning since 1977 for regulating agricultural marketing, had been renamed as Department of Agricultural Marketing and Agri Business to focus on other latest technologies like postharvest management, grading, packaging, food processing and export. The

13 93 core objective of the Department of Agricultural Marketing and Agri Business is to help the farmers in marketing their agricultural produce at a fair price and to ensure remunerative returns to them. The aim of this department is regulating agricultural produce trade by enforcing Tamil Nadu Agricultural Produce Marketing (Regulation) Act 1987 most effectively and also implementing new technologies to minimize post-harvest losses by adopting various cost effective post-harvest operations like value addition, storage, grading, packaging, processing, and easy transportation. The Government of Madras enacted the Madras Commercial Crops Market Act in In order to extend the scope of the Act to all agricultural produces, the Act was modified as Tamil Nadu Agricultural Produce Market Act in The era of regulated markets started in Tamil Nadu in 1936 with the establishment of the first regulated market for cotton at Tiruppur under the Coimbatore Market Committee. The second regulated market was established at Tindivanam in 1939 under the South Arcot Market Committee. Today all districts in Tamil Nadu have market committees except Nilgiris district. At present there are 21 market committees and 292 regulated markets are in operation in Tamil Nadu. These market committees are functioning with members nominated by Government and Chairpersons elected by the members. The market committees are constituted at district level and they establish regulated markets under their control for better administration. There exist differences between the Tamil Nadu pattern of regulated

14 94 markets and the all India pattern. In Tamil Nadu pattern, there is one market committee for each revenue district, whereas, in all India pattern, each regulated market is an independent entity with a market committee of its own. Further, in all India pattern, the traders are allowed to have their shops within the premises of regulated markets, while in Tamil Nadu pattern, no such practice is followed with the exception of Tirupur Regulated Market No. of Market Committees and Regulated Markets The following table shows the market committee-wise number of regulated markets in operation in Tamil Nadu. TABLE 3.3 Market Committee-wise Regulated Markets in Tamil Nadu S.No. Market Committees No. of Regulated Markets 1. Kanchipuram Vellore Thiruvannamalai Cuddalore Villupuram Salem Dharmapuri Coimbatore Erode Tiruchirappalli Thanjavur 29

15 Pudukkottai Madurai Ramanathapuram/Virudhunagar Tirunelveli Kanyakumari 6 Total 268 Table 3.3 shows the market committee-wise formation of regulated markets in Tamil Nadu. 268 regulated markets are in operation in Tamil Nadu. The number of regulated markets is relatively more in Thanjavur, Erode and Madurai Market Committees. These three Market Committees have 27.61% of total regulated markets in the state. The Thanjavur Market Committee has promoted more number of regulated markets (29) followed by Erode Market Committee (24) and Madurai Market Committee (21). The Kanyakumari Market Committee has promoted less number of regulated markets (6) followed by Pudukkottai and Cuddalore Market Committees (10) Facilities Available in the Regulated Markets The market committee offers godown, rural godwon, transaction shed, drying yard, farmers rest shed, sanitary facilities and drinking water facilities to farmers. The following table shows various facilities available in various market committees for the benefits of the farmers in Tamil Nadu.

16 96 TABLE 3.4 Facilities Available in the Regulated Markets S. No. Market Committees Own Land Godown Rural Godown Transaction Shed Drying Yard Farmers Rest Shed Sanitary Facilities Drinking water Facilities 1. Kanchipuram Vellore Thiruvannamalai Cuddalore Villupuram Salem Dharmapuri Coimbatore Erode Tiruchirappalli Thanjavur Pudukkottai Madurai Ramanathapuram Tirunelveli Kanyakumari Theni Dindigul Nagapattinam Thiruvarur Total From the above table it is observed that Coimbatore Market Committee (58) offers more number of godowns, followed by Erode Market Committee (12). In regards rural godwon, Tirunelveli Market

17 97 Committee (12) offers more number of rural godowns, followed by Coimbatore Market Committee (11). Villupuram Market Committee had more number of transaction sheds (26) followed by Tiruchirappalli Market Committee (24). In regards drying yards, Coimbatore Market Committee (21) offers more number of drying yards, followed by Erode Market Committee (16). There are more number of farmers sheds in Tirunelveli and Villupuram Market Committees (10) followed by Thiruvannamalai and Thanjavur Market Committees (6). Villupuram Market Committee offers more number of sanitary facilities (22) followed by Tiruchirappalli Market Committee (19). In regards drinking water, Tirunelveli Market Committee offers drinking water facilities in 15 regulated markets followed by 14 regulated markets in Erode Market Committee Agriculture Produce Marketing Committee Regulated markets are functioning under market committees. At present 21 market committees are functioning in Tamil Nadu at district level. There are 268 regulated markets, 15 check posts, 108 rural godowns and 108 grading centres functioning under the market committees. Regulated Markets are functioning by the governance of Tamil Nadu Agricultural Produce Marketing (Regulation) Act 1987 and Rules This Act and Rules are in existence since The Model Act, 2003 and Model Rules, 2007, which is formulated by Government of India, had

18 98 been received for amending the existing State Act 1987 and Rules The Model Act 2003 emphasizes the following points: Establishment of private markets/yards, direct purchase centres, consumer/farmers markets for direct sale and promotion of public private partnership in the management and development of agricultural markets in the country. Separate constitution of special markets for commodities like onions, fruits, vegetables, flowers, etc. A separate chapter has been included in the legislation to regulate and promote contract farming arrangements in the country. Prohibition of commission agency in any transaction of agricultural commodities with the producers. Redefine the role of state agricultural marketing boards to promote standardization, grading, quality certification, market led extension and training of farmers and market functionaries in marketing related areas. Facilitate, e-trading, direct purchasing, export, forward/future trading and introduction of negotiable warehousing receipt system in respect of agricultural commodities.

19 Functions of Regulated Markets The primary object of regulating the market is to safeguard the interest of the producer sellers and 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. The market committee consists of 12 to 18 members depending on the size of the market and other considerations, which are responsible for utilizing the fund for: Maintaining and managing the market. Enforcing in the market area, the provisions of the Act, the rules and the bylaws. Enforcing the conditions of licenses granted to different market functionaries in connection with the purchase and sale of agricultural produce regulated by it. Granting, renewing, suspending and canceling a general or a special license for the purchase and sale of regulated agricultural produce. Maintaining the register containing the names of all licensed traders and general commission agents.

20 100 Providing all facilities in the market as per the directions of the Director. Preparing budget estimate of its income and expenditure for the next succeeding year and sanctioning it within the prescribed period. Levying fees on the agricultural produce or sold in the market area and collecting them through agents or otherwise. Managing the income, incurring the expenditure and investing the surplus funds. Keeping the account and other records in such a manner as directed by the Director or any other officer authorized by him on his behalf. Maintaining a register showing the fees collected by it. Paying contribution every year at prescribed rates to the State Agricultural Produce Fund. Prescribing the market charges with the previous sanction of the Director for the services of different market functionaries rendered in connection with the purchase and sale of agricultural produce regulated. Taking all possible steps to prevent adulteration of agricultural produce in the market area. Promoting, grading and standardizing of agricultural produce.

21 101 Collecting and maintaining daily list of prices of different types and grades of agricultural produce regulated by it and supplying them to the government when required. Placing information on matters like the prices of the commercial crops ruling at the principal markets of the tract and at the ports at the disposal of the users of the market by publishing it. Communicating the full names and addresses of the traders holding general licenses in the market area to the authorized officer within the prescribed time when general election or by-election to be held. Prescribing the units of quotations in respect of the regulated agricultural produce to be bought and sold. Appointing one or more sub-committees for carrying out any work or to resort to it on any matter and delegating such powers and duties to it or them or to any of its members as may be deemed necessary. Issuing all directions necessary for the guidance of the persons using the market by publishing them on the notice board Services Rendered by the Regulated Markets Regulated markets operate through Agricultural Produce Marketing Committee. They aim at protecting the farmers from malpractices and

22 102 securing a remunerative price for the produce. Regulated markets provide better places to farmers to sell their produce under competitive condition and better supervision where there are no cheating in weights and measures, to unauthorized deductions, no quarrels, no litigation, etc. There are regulated markets which have shown new paths, there are cattle markets, fruits and vegetable markets, they organize exhibitions useful to the farmers, supply price positions for farm produce on All-India Radio, provide better amenities to the farmers, and new ideas are disseminated to the farmers on these markets. Competitive and remunerative prices are ensured for the produce sold by the farmers through closed tender system. Free grading facilities for agricultural commodities are also made available in regulated markets. No fee is collected from farmers for the services provided in regulated markets. Market committees collect 1% as market fee from the traders on the value of agricultural produce purchased by them. Besides, license fee is also collected from traders and weighmen. Regulated markets provide various kinds of facilities like electronic weigh bridges, weighing balances, godowns, immediate payment after auction, daily price information, rest sheds, drinking water, cattle sheds, free medical aid to farmers, input shops, phone, fax facilities, etc. Under "AGMARKNET" centrally sponsored scheme 93 regulated markets have been

23 103 provided with computer and internet connectivity for effective price dissemination among farmers through AGMARKNET website. The information on commodity prices prevailing in various markets is made available and the farmers would be able to get better price of their produce by moving their produce to the market which pays higher. The government, on the basis of the recommendations of the concerned market committee does notification of crops. The notified area of a market committee is a revenue district and that of regulated market is an area with a radius of 16 kms from the regulated market. The government notifies the principal crops in the notified area depending on the cropping pattern. Notification of crops implies that purchase and sale within and movement of produce out of the notified area should be done only with the permission of market committee. Further, traders dealing in such market committee should obtain license from the market committee, pay the necessary market fees and submit periodical accounts for their transactions to the market committee. Notifications of crops differ for each market committee, and only a few commodities are common to most of the market committees. The training centre of Tamil Nadu State Agricultural Marketing Board, Chennai, is functioning at Salem in an extent of 2.25 acres of land. This training centre caters to the training needs of the market committee employees and the farmers. Three different training programmes namely, graders

24 104 training, market committee employees refresher training and personal contact programme are conducted by this training centre. The graders training is conducted for the employees of the market committee for 30 days duration in 3 batches per year, comprising 60 employees. The refresher training of 28 days duration is conducted for the staff working in market committees in one batch per year comprising 20 persons. The personal contact programme of 3 days duration is conducted for the farmers in 5 batches for 100 farmers. Regulated markets are issuing pledge loan to small and marginal farmers to avoid distress sales due to price fall. Under this scheme, farmers can store their agricultural produce in the godowns of regulated markets for a period of 6 months without any fee and avail pledge loan of 75% on a total value of their produce upto a maximum of Rs.1,00,000 at 5% interest rate. Similarly pledge loan facilities are also extended to traders at 9% interest rate. Farmers or tenants who sell one or more than one metric tonnes of agricultural produce every year through regulated markets are enrolled under Tamil Nadu Farmers Development and Welfare Scheme, and they are eligible for a grant of Rs.1,00,000 in case of death/permanent disability due to accident/death due to snake bite. In case, the eligible farmer or tenant loses both the hands/legs/eyes due to accident is eligible for a grant of Rs.75,000/-. In case of losing one hand/leg/eye or permanent hip disability due to accident the farmer or tenant is eligible for a grant of Rs.50,000/-. Farmers need not

25 105 pay any premium to avail this facility in the scheme. The market committee concerned and the Tamil Nadu State Agricultural Marketing Board bear the premium amount of Rs.10 per individual per year equally Profile of the Select Regulated Markets given below. A brief description of the select regulated markets for this study is Date of Registration and Area of Operation Table 3.5 reveals the date of registration and area of operation of the select regulated markets in Salem district. TABLE 3.5 Year of Establishment and Area of Operation of the Select Regulated Markets Regulated Market Year of Establishment No. of Villages Category Salem Primary Valappady Primary Attur Primary Gengavalli Primary Thalaivasal Primary Source: Secondary Data It is observed from the above table that Salem and Attur regulated markets were established in the year Valappady and Thalaivasal

26 106 regulated markets were established in the year Gengavalli regulated market was established in the year All the select regulated markets are primary markets in nature. Of the select regulated markets, Salem regulated market has vast coverage covering 136 villages, followed by Thalaivasal regulated market (26 villages) and Attur regulated market (20 villages). Valappady and Gengavalli regulated markets have an area of operation about 12 villages and 17 villages respectively Human Resources Strength and Category The various categories of employees that are found in the select regulated markets are broadly categorized into officers, clerical staff, weighmen and other category. The category-wise strength of employees of the select regulated markets as on is given below. TABLE 3.6 Employees Strength of the Regulated Markets as on Regulated Market Officers Clerical Staff Wieghman Others Total Salem Valappady Attur Gengavalli Thalaivasal Source: Secondary Data

27 107 Table 3.6 reveals the category-wise composition of employees of the select regulated markets. 28 employees are working in Salem regulated market, 4 in the Valappady regulated market and 5 in the Attur regulated market, and 3 employees are working each in Gengavalli and Thalaivasal regulated markets Market Fee at the Select Regulated Markets A brief description of the market fee to be paid in select regulated markets is given below. TABLE 3.7 Market Fee to be Paid in the Regulated Markets Regulated Market Market Fee Paid by Market Fee (%) Salem Traders 1.00 Valappady Traders 1.00 Attur Traders 1.00 Gengavalli Traders 1.00 Thalaivasal Traders 1.00 Source: Secondary Data Irrespective of regulated markets, the traders are asked to pay market fee about 1 per cent on their trade value to the respective regulated market.

28 Price Determination and Payment Procedure Table 3.8 reveals the price determination and payment procedure followed in the select regulated markets in Salem district. TABLE 3.8 Price Determination and Payment Procedure Regulated Market Price Determination Payment Procedure Thalaivasal Bidding On spot cash Gengavalli Bidding On spot cash Attur Bidding On spot cash Salem Bidding On spot cash Valappady Bidding On spot cash Source: Secondary Data Price for the agricultural produce is determined by bidding in all select regulated markets. The price for the agricultural produce is paid on spot to farmers in the select regulated markets Facilities Available at the Select Regulated Markets A brief summary of the facilities available to farmers at the select regulated markets is given below.

29 109 TABLE 3.9 Facilities Available at the Select Regulated Markets Regulated Market Number of Functionaries Physical Facilities Marketing Equipment Facilities Special Arrangements Thalaivasal Traders: 40 Rented office. Water supply. Computer. Weighing scales. Moisture metre. Processing. Grading. Price notification. Storing. Grading. Payment. Administrative help. Self-help Gengavalli Traders: 90 Auction Platform: 1. No. of store/ godown: 1. Office. Water supply. Computer. Weighing scales. Moisture metre. Grading. Price notification. Storing. Grading. Payment. Self-help. Attur Traders: 60 Processors: 15 Auction Platform: 2. No. of store/ godown: 2. Rented office. Water supply. Computer. Weighing scales. Moisture metre. Establishment. Diversion of trade. Grading. Standardization. Price notification. Storing. Grading. Payment. Administrative help. Self-help. Salem Traders: 900 Processors:100 Auction Platform: 2. No. of store/ godown: 2. Office. Water supply. Cattle shed. Computer. Weighing scales. Moisture metre. Establishment. Diversion of trade. Grading. Standardization. Price notification. Grading. Administrative help. Self-help. Valappady Traders: 295 Auction Platform: 1. Rented office. Water supply. Computer. Weighing scales. Moisture metre. Grading Price notification Grading. Administrative help. Source: Secondary Data From the above table, it is observed that Thalaivasal regulated market is functioning at the rented office with 40 traders. In the case of physical facilities, it has water supply and computer. It has weighing scales

30 110 and moisture metre. Processing, grading and price notification facilities are available to farmers at the Thalaivasal regulated market. During peak season, storing, grading, payment, administrative help and self-help arrangements are made. Gengavalli regulated market is functioning in its own office with 90 traders. In regards physical facilities, it has auction platform, godown, water supply and computer. It has weighing scales and moisture metre. Grading and price notification facilities are available to farmers at the Gengavalli regulated market. During peak season, storing, grading, payment and self-help arrangements are made. Attur regulated market is functioning at the rented office with 60 traders and 15 processors. With regard to physical facilities, it has auction platform, godown, water supply and computer. In case of marketing equipment, it has weighing scales and moisture metre. Establishment, diversion of trade, grading, standardization and price notification facilities are available to farmers at the Attur regulated market. During peak season, storing, grading, payment, administrative help and self-help arrangements are made. Salem regulated market is functioning in its own office with 900 traders and 100 processors. In regards physical facilities, it has auction platform, godown, water supply, cattle shed and computer. In case of marketing equipment, it has weighing scales and moisture metre. Establishment, diversion of trade, grading, standardization and price notification facilities are available to farmers at the Salem regulated market. During peak season, grading, administrative

31 111 help and self-help arrangements are made. Valappady regulated market is functioning at the rented office with 40 traders. In regards physical facilities, it has auction platform, water supply and computer. In case of marketing equipment, it has weighing scales and moisture metre. Grading and price notification facilities are available to farmers at the Valappady regulated market. During peak season, grading and administrative help arrangements are made Summary In this chapter, an attempt has been made to review the working of regulated markets in India as well as in Tamil Nadu. Regulated markets were started in India as early as in the beginning of 19 th century. The first legislation in the country was Barer Cotton and Grain Market Act of The Bombay government also passed the Bombay Cotton Market Act in 1927 for a better regulation of the commodity in the presidency. However, the markets organized under the Barer Cotton and Grain Market Act of 1897 suffered from serious drawbacks. The Royal Commission on Agriculture investigated the whole position of regulated markets and gave its recommendations for the better marketing of agricultural produce. The total number of regulated markets in India was 7132 in The Government of Madras enacted the Madras Commercial Crops Market Act in In order to extend the scope of the Act to all agricultural produces, the

32 112 Act was modified as Tamil Nadu Agricultural Produce Market Act in This Act is intended to provide for better regulation of buying and selling of agricultural produce. At present there are 297 regulated markets functioning in the state. The regulated markets are expected to carry out the marketing functions such as assembling, transport, storage, financing, grading and market information. The establishment of the regulated markets helps in creating orderly and transparent marketing conditions.