BANKING TRADE AND COMMERCE

REGULATED MARKETS

In the past the farmer was deprived of his just reward by the middleman who paid him a lower price for his produce whereas the consumer was also duped as a reasonable price was not charged to him by the same agency. The condition in which the cultivator had to dispose of his produce were far from satisfactory. The standard of markets where agricultural produce is marketed at present was also very poor in the past. There were great variations in market practices and on the whole the functions of the marketing machinery were more inclined towards safeguarding the interest of the traders and the middlemen rather than those of the primary producer. There was no check on weights and measures prevailing or extraordinary and illegal deductions made. The marketing machinery was choked up with such glaring mal-practices that it had thrown the cultivator in a mood of pessimism and helplessness. The cultivators were also ignorant about their stake in the economic process associated with the marketing of agricultural produce and had thus to depend solely on the middleman. An average agriculturist was the victim of ' distress sales' which led to windfall gains and windfall profits to the traders. This state of affairs received the attention of the Royal Commission on Agriculture (1927) which recommended to the Government the necessity of regulating the agricultural trade. The timely passing of the subsequent Acts stressed the need of protection to the farmers in the proper marketing of agricultural produce by establishing a number of regulated markets.

The markets for agricultural produce in Bhandara district are regulated as per the Central Provinces and Berar Agricultural Produce Market Act, 1935.

In the district there are, at present nine important market places where agricultural produce is assembled. The Agricultural Produce Market Committees have already been formed at six places viz., Bhandara, Gondia, Amgaon, Tirora, Lakhani and Pauni. These markets are mainly established to regulate the sale and purchase of agricultural produce. The markets have committees as per the provision contained in the Central Provinces and Berar Agricultural Produce Market Act, 1935. The Act provides for the establishment of market committees consisting of not less than ten and not more than 16 members who represent growers, traders, local authority and Government. The main features of the Act are: regulation of market practices, clear definition of market charges and reduction of excessive charges, licensing of market functionaries e.g., buyers, brokers, and weighmen, use of standard weights and measures, settlement of disputes, publishing of reliable and up-to-date market information, Government control over markets and market committees, etc.

The Central Provinces Agricultural Produce Market Act, 1935 as amended by Act No. VII of 1937 and the Central Provinces Cotton Market Act, 1932 as amended by the Acts of 1936 and 1937 have been repealed by the enforcement of the Maharashtra Agricultural Marketing (Regulation) Act, 1963 since May 1967. The regulated markets established under the repealed Central Provinces and Berar Agricultural Produce Market Act, are deemed to be within the purview of the new Act.

According to this new Act the prices of commodities brought into the market are settled by open auction or an open agreement in the presence of officials of the market committee. This rule is strictly adhered to. Before the auction starts the individual lots are arranged in open heaps for inspection of the buyers. Previously cotton was sold by fardi system and the rate of cotton was being declared in the market committee office. The system was found to be defective as there was no chance of getting maximum prices for the produce of the cultivators. To remove these defects a new system, viz., the cart-wise auction of cotton was initiated. Under this system the produce is arranged in heaps or bullock carts near the adat shops of the authorised general commission agents. The general commission agents who are also called adatyas play the key-role of intermediaries between the cultivators and traders. They dispose of the agricultural produce on behalf of the cultivators and get commission in this transaction at rates prescribed by the market committee. The traders or their representatives inspect the agricultural produce and start bidding. The bidding is done in the presence of the market supervisors appointed by the market committee. As soon as the bargain is agreed between the cultivator and the trader through the commission agent, the general commission agent prepares an agreement called kabulayat regarding price. The officials of the market committee supervise all these transactions. The bargain is registered in the register of market committee, after which the necessary payments regarding market fee, etc., are made to the committee.

The weighment of all agricultural commodities except cotton is completed in the market yard. The weighment of cotton is undertaken generally in the premises of ginning and pressing-factories. As soon as the weighment is completed the commission agent prepares sale-proceeds and payment is made to the cultivator-seller immediately. The duplicate copy of the sale-proceed is checked by the officials of the market committee to ascertain whether the market charges prescribed by the market committee are deducted or not. The weighment and payment is supervised by the supervisory staff of the market committee. The weighment is done in weights and measures prescribed by Government. The scales for weighment of agricultural produce are provided by the adatyas. The unit of sale for price quotations is in terms of quintals.

The market committees render a very useful service for the development of agricultural marketing by giving a just price to the cultivators for their produce. Moreover they encourage and propagate the importance of their service by aiming to provide quality and graded produce to the traders.

The supervisory staff of the market committees oversee all the operations involved in the marketing of agricultural produce. A code of business conduct is prescribed, and arrangements are made to settle any dispute as and when it arises. The functionaries in the market, viz., general commission agents, hamals and weighmen are licensed by the market committee. On payment of the prescribed market fee they are issued with licenses. The market committees shoulder the responsibility for ensuring smooth and steady business and protection of the interests of the agriculturists.

One of the important functions of the Market Committee is to compile data regarding prevailing commodity prices and other market news in their area and supply it regularly to concerned authorities. All such statistical information is sent to the Marketing Research Officer, Bombay, the Economic and Statistical Adviser to Government of India, New Delhi and other concerned offices for news broadcast. Daily prices also sent by telegram to the Nagpur Radio Station, and to some imporant grampan-chayats. Besides, the trends of prices in important markets in the districts as well as in the State are also announced for the information of the local agriculturists before the auction takes place. This serves as a guide to the sellers as well as buyers of agricultural produce.

The Zilla Parishad is empowered to exercise supervision and control over the agricultural produce market committees. However, this supervision is limited to the developmental and promotional activities. The administrative control over these market committees is, however, now vested in the Director of Agricultural Marketing and Rural Finance, Maharashtra State, Pune, consequent on the enforcement of the new Maharashtra Agricultural Produce Marketing (Regulation.) Act, 1963. The Director of Agricultural Marketing and Rural Finance has, however, delegated powers to the District Deputy Registrar of Co-operative Societies, Bhandara, to facilitate expeditious working of the market committees.

Bhandara district is well-known for its paddy crop, and the main arrivals in the market are paddy and rice. Under the system of monopoly procurement of paddy, rice, and jowar, private trade in these commodities is prohibited. Paddy, rice and jowar are sold to the agencies appointed by Government. Hence they are not transacted in the market yards. This has reduced the income of the committees which could have accrued to them by way of licence fee from the traders, commission agents and hamals.

A number of commodities have been brought under the regulation of the market committees, the important among which are cotton, wheat, paddy, bhusa, gram and gram dal, linseed, tur dal, popat, mung, udid and udid dal, jawas, watana, safflower, methi, dhania (coriander), mot, masur, groundnut, sesamum, mahua and tamarind.

To decide the quality of agricultural produce the grading system is introduced in this district also. The grading unit is attached to the grain market committees at Gondia and Tirora. The same unit is also attached to the purchase and sale society at Tumsar. Only commercial grading is carried on at these places.  The  commodities  are  classified as  'A', 'B' and 'C' according to their quality.

To keep the agricultural produce of the cultivators intact there are two warehouses, one belonging to the Central Warehousing Corporation at Gondia and the other to the Maharashtra State Warehousing Corporation at Tumsar. Except Gondia market committee no other committee has been sanctioned financial assistance for construction of a market yard for storing of agricultural produce.

Bhandara: The Agricultural Produce Market Committee, Bhandara, was established on 22nd November 1963 under the Central Provinces and Berar Agricultural Produce Market Act, 1935. Since the repeal of that Act in 1967 it is regulated under the Maharashtra Agricultural Produce Marketing Regulation Act, 1963. The market committee is located on the outskirts of Bhandara town. The jurisdiction of the market extends over a radius of five miles from the market yard. The municipal limits of Bhandara town have been defined as the limit of the market yard for that purpose. Being a district headquarters it is an important and fast developing trading centre. The market committee which is a corporate body comprises 12 members, of whom six represent agriculturists, two traders and one each, local body and Government.

The important commodities regulated at this market are gram, wheat, paddy, rai, jowar, tur, udid, mung, barbati, kulthi, alsi, til, ambadi, karadi, groundnut, popat, lakh and masur.

The market committee derives its income from collecting market fee and licence fee. Market fee is levied on an ad valorem basis at a rate of 25 paise for the produce worth Rs. 100 and it is collected through commission agents. The income by way of market fee was Rs. 1,292 and by way of licence fee Rs. 1,194 in 1968-69. In the same year the other income was Rs. 1,455 thus making a total of Rs. 3,941. The expenditure during the same year was Rs. 3,341 which left the committee with a surplus of Rs. 600 at the close of the year.

The daily attendance of cultivators and traders in the market comes to about 35 to 50 which goes up to 100 to 150 during the peak season.

The functionaries working in the market yard are sellers, buyers, hamals, weighmen, etc. Their number is shown below: —

The various market charges prevailing in the market area are as under: —

The market committee possesses its own godown in the market premises where the agricultural produce is stored on nominal charges. The storing capacity of the godown is about 250 bags.

The committee in order to finance its activities takes credit from the State Bank of India, the Bhandara District Central Co-operative Bank, Co-operative Societies etc. The market yard is spacious and provides necessary facilities, such as sheds, drinking water, water tank, cattle trough, sanitary blocks, electricity, approach roads, radio-sets, etc.

Co-operative marketing has achieved a highly satisfactory progress at Bhandara. The two co-operative societies viz., (i) Co-operative Rice Mill Society Limited, Kardha and (ii) the Bhandara branch of the Zilla Shetki Sahakari Vikri Society Limited have a prominent place in the commercial transactions. In addition, there are a number of other co-operative institutions doing adat business in the market yard, one among them being the Vidarbha Co-operative Marketing Society Limited.

The following table shows the quantity and value of various commodities arrived at the Bhandara market yard during the year 1968-69: —

TABLE No. 31

TURNOVER OF COMMODITIES ARRIVED AT BHANDARA MARKET COMMITTEE DURING 1968-69.

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