BANKING TRADE AND COMMERCE

REGULATED MARKETS

Yeotmal has a long tradition of organised marketing. The history of regulated markets can be traced to the year 1898 when the cotton market at Yeotmal was established. This was followed by the establishment of cotton markets at Wani (1916), Pandharkawda (1917), Ghatanji (1920), Darwha (1921), Pusad (1922), Digras (1923), Umarkhed (1928) and Bori-Arab (1936). These markets were organised under the Berar Cotton and Grain Markets Law of 1897. However, their functioning and organisation left much to be desired. The working of these cotton markets was subsequently brought under the purview of the Central Provinces and Berar Cotton Markets Act of 1932. Trans-actions in foodgrains and other agricultural produce were brought under regulation by the Central Provinces and Berar Agricultural Produce Markets Act of 1935. The management of the cotton market and agricultural produce market was, however, vested in a single market committee for each market town. This arrangement prevailed in some markets while in some others the grain markets were under control of the municipal authorities. The dual control over agricultural marketing was not conducive to growth of organised marketing.

After the merger of the district in Maharashtra State it was felt that there should be a single enactment for the regulation of agricultural marketing. The Government, therefore, decided to repeal the Central Provinces and Berar Cotton Markets Act of 1932, the Central Provinces and Berar Agricultural Produce Markets Act of 1935, the Bombay Agricultural Produce Markets Act of 1939 and the Hyderabad Agricultural Produce Markets Act of 1930. All the markets established under these Acts were brought under the purview of the unified enactment, viz., Maharashtra Agricultural Produce Marketing (Regulation) Act of 1963. Accordingly all the markets in the district are regulated under the new enactment, and the rules thereunder.

There are eight regulated markets in the district. At the time of survey three more markets, viz., Arvi, Ner and Ralegaon were also proposed to be regulated. Each of the existing markets possesses a market yard. However, many of the market yards are smaller than the requirement. This is a handicap which prevents, the weighing of cotton produce at the market yard. The functioning and organisation of the respective regulated markets are controlled by market committees. A market committee comprises representatives of agriculturists, traders, local bodies and Government nominees. The committee which is elected periodically is required to solve any disputes incidental to day-to-day working of the market. The market functionaries consisting of buyers (traders), dalals, weighmen, and hamals are licensed by the market committee and are required to pay the stipulated fee.

The agriculturist brings his produce to the market yard. Agricultural produce other than cotton is sold by open auction on the yard. The unit of price is quintal, and the auction is struck in favour of the highest bidder. The dalal who gets a certain rate of commission from the seller helps to sell the produce of the latter. After the bargain is agreed, the dalal prepares a cash memo called patty, and the transaction is registered by the market official. Weighment of the produce is made on the market yard by licensed weighmen. The authorised charges for weighment and hamali are required to be paid by the sellers.

As regards cotton transactions, the agriculturist arranges his carts exhibiting the raw cotton for inspection by the prospective purchasers or their agents. After inspecting the produce the purchasers quote their purchase price as per the quality of the cotton.

A fair average price is arrived at as per the market situation. If the agriculturist agrees to sell his produce at the price quoted by the purchaser, the bargain is registered by the official of the market committee. After the agreement is finalised the agriculturist has to take his cotton produce to the premises of the purchaser, generally a ginning factory. The produce is weighed there on weigh bridges under the control of licensed weighmen. After weighment clearance, the agriculturist is to be paid the sales proceeds immediately, under the supervision of the market authorities.

A remarkable feature of the entire mode of sales operation is that all transactions are done under the supervision of the market authorities. The interests of the agriculturist are protected and malpractices avoided. Disputes are solved by arbitration by the market committee. As all the market functionaries including traders, dalals, weighmcn and hamals are licensed by the market committee, they are bound by rules and regulations framed by the committee.

The sale of produce at the market yard is beneficial to the agriculturist due to a number of reasons. The agriculturist is guided by the market authorities about the market situation. He can keep himself informed about the prices prevailing in the market, and also those in other markets. He gets better prices because of the open competition between buyers, and is protected against the various malpractices and exploitation by traders. The (traders cannot deduct any money from the sales proceeds to be paid to the agriculturist, except for the market charges authorised by the market committee. The weighment is done under the supervision of authorised weighmen, hence the chances of malpractices are reduced to a great extent. The agriculturist gets the value of his goods immediately after the transactions are over.

The rise of co-operative marketing societies which function as general commission agents in the markets is beneficial to the agriculturist as well.

Market charges: —

The market committees have fixed the rates of the authorised market charges to be deducted from the value to be paid to the agriculturist. The rates are based on per hundred of sales proceeds.

[Figures in paise]

The deductions on account of quality allowance (kadad) and charity (dharmadaya) are not allowed.

The Maharashtra Agricultural Produce Marketing (Regulation) Act has laid down that the sale of agricultural produce within the official market area, which is declared for the purpose, should be done at the premises of the market yard only. The market committee encourages the agriculturists to bring the produce of standard quality to the market yard which assures a better price for better quality.

One of the outstanding features of regulation of agricultural marketing through the market committees, is the facility of dissemination of prices and market news. The market committees announce the prices and arrivals in the respective markets and other important markets for the benefit of the agriculturists as well as traders. Market news relayed from the All India Radio (Akashwani) is made available to the agriculturists.

It is noteworthy that the regulation of agricultural marketing has progressed considerably during the last fifteen years or so. The implementation of the Maharashtra Agricultural Produce Marketing (Regulation) Act of 1963 accelerated the rate of progress of regulated markets. The new Act has guaranteed an assured income to the market committees by prescribing a higher rate of market cess. The market practices and the role of market functionaries are also precisely defined. The better financial position of the market committees afford better facilities to the agriculturists as well as traders.

The regulated markets are supervised and controlled by the Co-operation and Industries Officer who is in turn under the direction and control of the Deputy Registrar of Co-operative Societies of the district.

Yeotmal Grain and Cotton Market.

Yeotmal is one of the important centres of wholesale trade in Vidarbha, and is the biggest market in the district. It is an assembling as well as distributing centre of trade. A number of routes of trade emanate from Yeotmal to Amravati, Wardha, Dhamangaon, Chandrapur, Aurangabad, Nanded and Murtazapur. Hence, it is an entrepot centre of trade of great importance. The important commodities of wholesale trade at Yeotmal are cotton, groundnut and tur. Since the monopoly procurement of jowar by Government, transactions in jowar are prohibited in the open market. Besides, there is wholesale trade in bajri, mug, til, udid, linseed, wheat and other agricultural produce. There is also a considerable trade in groundnut oil, timber, cotton seed and cloth which are not within the purview of the market committee.

The cotton market at Yeotmal is one of the oldest in Maharashtra which was established under the Hyderabad Residency Act as early as 1898. The Central Provinces and Berar Cotton Markets Act of 1932 was made applicable to this market in 1935 though the rules and bye-laws were framed in 1942. The trade in agricultural produce other than cotton, viz., foodgrains, was, however, brought under regulation in 1961. Foodgrains were regulated under the Central Provinces and Berar Agricultural Produce Markets Act of 1935. At present the transactions in all agricultural commodities are regulated under the Maharashtra Agricultural Produce Marketing (Regulation) Act of 1963.

The annual turnover of trade in this market amounts to five crores of rupees, the annual arrival of cotton being to the tune of 76,296 carts and that of foodgrains 15,873 carts in 1965-66. The annual turnover of each commodity handled in this market in 1965-66 is given below: —

TURNOVER OF TRADE AT YEOTMAL MARKET IN 1965-66

The jurisdiction of the market committee extends over an area of 10 miles around the market yard. However, cotton produce from distant villages is brought to Yeotmal. The market yard consists of an area of about 10 acres of land and provides the usual amenities to farmers and traders. There are 25 traders, 442 adatyas and 14 weighmen connected with cotton trade and 30 traders, 33 adatyas and 17 weighmen connected with the trade in foodgrains in this market. These market functionaries are licensed by the market committee.

Yeotmal market enjoys the facility of a warehouse provided by the Central Warehousing Corporation of India. The farmers, however, do not take the maximum advantage of this facility due to the following factors, viz., (1) their ignorance, (2) inconvenience and (3) apathy of banks towards farmers in respect of promptness in payments against warehouse receipts.

Banking facilities are provided by the branches of the State Bank of India, the Punjab National Bank, the Bank of Maharashtra and the Bank of Baroda. These banks provide market finance to traders and to agriculturists only against warehouse receipts. The cotton traders get advances under the system of cotton co-operative pool. The District Central Co-operative Bank gives loans to agriculturists which are recovered through co-operative societies of which they are members. Some of the traders give credit to agriculturists against the expected agricultural produce.

The development of co-operative marketing is one of the important aspects of the growth of organised marketing at Yeotmal. There are two co-operative marketing societies, viz., (1) Yeotmal Sahakari Shetkari Kharedi-Vikri Samiti and (2) Vikas Khand Sahakari Kharedi Vikri Samiti, Kalamb, engaged in selling the produce of the agriculturists on a commission basis.

The prices of agricultural produce prevailing in the market in 1961-62 and 1964-65 are given in Table No. 11 and Table No. 12.

TABLE No. 11

WHOLESALE PRICES OF AGRICULTURAL PRODUCE IN 1961-62 AT YEOTMAL

[Prices per Quintal.]

 continued.

TABLE No. 12

WHOLESALE PRICES OF AGRICULTURAL PRODUCE IN 1964-65 AT YEOTMAL

[Prices per Quintal.]

 continued.

Wani is an important centre of trade in agricultural produce, second only to Yeotmal in the district. The main arteries of trade from Wani connect it with Nagpur, Yeotmal, Warora, Akola and Chandrapur, while it is connected by means of a branch railway line to the Madras-Delhi Grand Trunk route. The railway line which ensures a great deal of transport at Wani was established in 1925. Wani is about 85 miles from Nagpur and about 67 miles from Yeotmal.

Wani Grain and Cotton Market.

It is reported that cotton cultivation progressed to a very great extent in the Wani area during the last decades of the nineteenth century. This led to the establishment of a ginning and pressing factory at Wani in 1902. With the increase in cotton trade, the cotton market was regulated under the provisions of the Berar Cotton and Grain Markets Law of 1897 in 1916. The market subsequently came under the purview of the Central Provinces and Berar Cotton Markets Act of 1932, Central Provinces and Berar Agricultural Produce Markets Act of 1935, and the Maharashtra Agricultural Produce Marketing (Regulation) Act of 1963 which is prevalent at present.

The market committee has maintained a spacious market yard furnished with the necessary amenities. Though all agricultural commodities are declared to have been regulated, the most important items of trade are cotton, tur, jowar, wheat and sesamum. The producers retain about 25 per cent of the produce for domestic consumption, while the rest is sold on the market yard. The entire crop of cotton is, however, exported. The following table gives the statistics of the turnover of trade in the market:—

TABLE No. 13

TURNOVER OF TRADE AT WANI MARKET IN 1964-65 AND 1965-66.

The market committee has licensed 50 adatyas, 12 traders and ten weigh men for cotton transactions and 40 adatyas, 30 traders and 15 weighmen for grain transactions. There is no system of grading and standardisation in the market. The State Warehousing Corporation has provided a warehouse for the benefit of the agriculturists as well as traders. Besides this warehouse, there are about 35 godowns.

Banking finance is provided by the branches of the Bank of Maharashtra, the State Bank of India and the District Central Co-operative Bank. The latter provides financial accommodation to co-operative marketing societies. There are two marketing societies engaged in adat business, and a co-operative ginning and pressing factory.

The pressing industries at Wani consist of six ginning and pressing factories, nine oil mills and seven dal mills. Cotton is processed in the local factories, and is exported to Bombay, Ahmedabad and Calcutta which are the principal destinations and also to Nagpur, Kanpur, Sholapur, Coimbtore and Madurai. Cotton seed is crushed in the local mills, and is exported to Bombay, Akola and Dalmianagar. Groundnut oil is exported to Bombay, Nagpur and Akola. Tur is sent in bulk to Madras and Gujarat, while sesamum to Madras. Gujarat and Madurai. Formerly jowar used to be exported to Andhra, Gujarat and Bombay but the exports have ceased because of monopoly procurement by Government.

Pandhar kawda Grain and Cotton Market.

The cotton market was established in 1917 and was constituted later on under the Central Provinces and Berar Cotton Markets Act of 1932. Agricultural produce was brought under regulation in 1959. The market committee is elected by cultivators and registered traders within a radius of ten miles from the market yard. The yard provides various amenities, such as, a big shed, a meeting hall, water arrangements and a radio-set with loudspeaker.

The commodities regulated in this market comprise cotton, tur, tur dal, bajri, mug, barbati, gram, wheat, groundnut, linseed and sesamum. Cotton and tur are, however, the principal items of trade. The turnover of trade in various commodities in 1963-64, 1964-65 and 1965-66 is given below:—

TABLE No. 14

 TURNOVER OF TRADE AT PANDHARKAWDA.

Though the official market area is stated to be within a radius of six miles, agricultural produce from distant places is assembled here. Being situated on the Nagpur-Hyderabad national highway, an important trade route in the region, Pandharkawda has assumed great commercial significance. Cotton, some of the foodgrains and oil-seeds from Kinwat in Nanded district and Adilabad in Andhra Pradesh used to be brought here for sale in the past. But due to the restrictions on inter-State movement of goods, the arrival of agricultural produce from Adilabad district has stopped now.

The market functionaries in this market consist of 33 adatyas, 14 traders and five weighmen for cotton and 21 adatyas, four traders and four weighmen for grain transactions.

The system of gradation and standardisation of agricultural produce is not prevalent in this market. Warehousing on scientific lines is not available here. Traders have their own godowns.

Trade finance is provided to the wholesale purchasers by the State Bank of India and the District Central Co-operative Bank.

Pusad Cotton Market.

Pusad is an important market situated in the midst of fertile tracts of agricultural land. The cotton market was established as early as 1922, but actually started operating in 1931. The trade in foodgrains, however, came under regulation in 1961. The market committee at present, is constituted under the Maharashtra Agricultural Produce Marketing (Regulation) Act of 1963, and has framed rules and bye-laws for regulating transactions in cotton as well as other agricultural produce. The commodities regulated at present are cotton, wheat, tur tur dal, mug, udid, barbati, groundnut, bajri, gram, gul and chilli.

Cotton, groundnut and udid are the principal items of wholesale trade at Pusad. Since the introduction of the system of monopoly procurement, jowar has ceased to he an item of open trade. The turnover of trade in cotton is given below:—

TABLE No. 15

ARRIVALS OF COTTON AT PUSAD MARKET

The quantity and value of trade in other agricultural commodities in the market in 1964-65 and 1965-66 are given below:—

TABLE No. 16

 TURNOVER OF TRADE AT PUSAD MARKET IN 1964-65 AND 1965-66

The functionaries in this market comprise 17 adatyas, nine traders, nine weighmen for cotton trade, and 23 adatyas, 16 traders and nine weighmen in respect of trade in other produce. There are two co-operative marketing societies engaged in adat business in the Pusad market yard.

The income of the market committee amounted to Rs. 9,360, while the expenditure, amounted to Rs. 9,694 in 1964-65. The market committee provided amenities, such as, a meeting hall, sheds, radio-set, loud-speakers, telephone and sanitary blocks.

Though warehousing on scientific lines is not available, the cooperative societies have provided godowns for the benefit of the agriculturists. The traders either have their own godowns or they engage them on hire.

The facility of gradation is available in respect of tur, groundnut, udid and jowar in this market. Banking finance is not very easy to get in this market. The Punjab National Bank and the District Central Co-operative Bank have branches at Pusad.

Cotton bales, groundnut, groundnut oil, tur dal, udid and some other commodities are exported from Pusad to Bombay, Akola, Ahmedabad, Madras and Nagpur. The merchandise is transported in motor trucks to the railway stations from where it is transported by railway to the various destinations. A major part of the volume of goods is, however, transported by road.

Darwha Cotton Market.

The cotton market at Darwha was established in 1921, and was supervised by the cotton market committee. The management of the grain market was transferred to the cotton market committee in 1959, the latter being constituted under the Central Provinces and Berar Cotton Markets Act of 1932. At present the market is under the purview of the new Act of 1963. The market area extends over an area with five miles radius from the market yard which is situated on a plot admeasuring three and a half acres.

The commodities regulated and usually sold in this market are cotton, groundnut, jowar, udid, bajri, tur, sesamum and mug. The turnover of cotton is, however, the largest among the commodities in this market. The annual turnover of various commodities in the market in 1964-65 and 1965-66 is given below:—

TABLE No. 17

TURNOVER OF TRADE AT DARWHA MARKET IN 1964-65 AND 1965-66

The market committee licensed three traders, ten adatyas, and two weighmen for cotton transactions, and ten traders, eleven adatyas and three weighmen for transactions in foodgrains. The trade in this market is brisk from October to December. There is a purchase and sale society doing adat business in the market yard. The annual income and expenditure of the market committee was reported to-be Rs. 8,111 and Rs. 6,159, respectively, in 1964-65.

Raw cotton is ginned and pressed in the local ginning and pressing factory, and is exported to Bombay, Madras and Ahmedabad. Nearly 75 per cent of the tur dal is exported to Bombay, while most of the udid grains are sent to Madras, and 75 per cent of bajri is sent to Gujarat markets.

The market does not provide the facility of grading and standardisation of products.

Digras Cotton Market.

The cotton market at Digras was established as early as 1923, while the management of the grain market was entrusted to the cotton market committee only in 1961. The purchase and sale society at Digras was entrusted with the work of management and supervision of the marketing operations. However, after the application of the Maharashtra Agricultural Produce Marketing (Regulation) Act of 1963 a separate market committee has been elected, and is charged with the usual functions. The market area extends over about four and half miles around the market yard. The market yard occupies an area of about four acres and provides the usual amenities.

The important commodities traded at Digras are cotton, udid and tur. The total turnover of trade in 1964-65 was 1,54,767 quintals, valued at Rs. 1,85,63,488. The annual turnover of the various commodities in 1964-65 is given below:—

TABLE No. 18

 TURNOVER OF TRADE AT DIGRAS MARKET IN 1964-65

The market functionaries licensed in this market consist of 38 adatyas, 17 traders and 10 weighmen for cotton, and 12 adatyas, 24 traders and three weighmen for foodgrains. Besides the purchase and sale society at Digras, there are seven co-operative marketing organisations connected with the market. These societies are a great boon to the agriculturist, and have helped to evolve a code of sound marketing practices.

The income and expenditure of the market committee in 1964-65 was Rs. 22,040 and Rs. 21,817, respectively, leaving a surplus of Rs. 223. The authorities have provided amenities, such as, a rest-house (Shetkari Niwas), cattle-shed, meeting hall, drinking water and a sanitary block.

Ghatanji Cotton Market.

The cotton market at Ghatanji was established in 1920, while the trade in foodgrains and other agricultural produce was regulated in 1959. At present all transactions in all agricultural produce are regulated and supervised by a market committee which has provided a market yard admeasuring five acres of land.

The principal commodities traded in this market are cotton and tur. The total turnover of trade in 1964-65 was 69,088 quintals valued at Rs. 89,23,044. The figures of turnover of each commodity in the same year are given below:—

TABLE No. 19

TURNOVER OF TRADE AT GHATANJI MARKET IN 1964-65

There are 25 adatyas, 7 traders, 17 retailers and four weigh-men for cotton transactions, and 19 adatyas, eight traders and three weighmen for grain transactions licensed by the market committee. In 1964-65, the income of the committee was Rs. 11,881, while the expenditure was Rs. 9,106. The market committee obtained loan finance from the Government for constructing market platforms.

Besides the Sahakari Kharedi-Vikri Samiti at Ghatahji, the co-operative marketing societies at Kalamb and Sakhara are engaged in adat business on behalf of the agriculturists at the market yard.

Umarkhed Cotton Market.

Like many other cotton markets in the district, the Umarkhed market was established as early as 1928. The trade in food- grains came within the control of the market committee in 1960. The official market area covers a radius of about ten miles around Umarkhed. The market yard occupies an area of about four acres and provides amenities, such as, a meeting hall, shed and sanitary blocks.

Though all agricultural commodities are regulated, the principal items of trade are cotton and tur. The total turnover of trade in the market yard amounted to 45,445 quintals valued at Rs. 53,16,521 in 1964-65. The annual turnover of transactions in various commodities in the same year is given below: —

TABLE No. 20

TURNOVER OF TRADE AT UMARKHED MARKET IN 1964-65

The market committee issued licences to 12 adatyas, 10 traders, seven retailers and five weighmen lor cotton trade, and 6 adatyas, 12 traders, seven retailers and three weighmen for grain trade. The income of the market committee from various sources amounted to Rs. 8,888, while the expenditure was Rs. 9,393 in 1964-65.

There are three co-operative marketing societies functioning as commission agents in the market yard.

Bori-Arab Cotton Market.

Bori-Arab is the smallest of all the regulated markets in the district. Established as a cotton market in 1936, it does not have a large turnover of trade either in cotton or other agricultural produce. The market yard is too small to be convenient for large-scale sale operations.

Though the entire agricultural produce is regulated, cotton is the only commodity transacted on the market yard. In 1964-65, 12,352 quintals of cotton valued at Rs. 17,04,576 was transacted at the market. The income of the market committee amounted to Rs. 1,636, while the expenditure to Rs. 1,085 in 1964-65.

TOP