Regulated Market

Regulated market is wholesale market where buying

and selling is regulated and controlled by the
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.

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 Regulated Market In India
 In India, agricultural markets came under regulation mainly
after independence, although some steps had been taken in
that direction during British rule. Regulated markets came into
being because the British ruler wanted to make available pure
cotton at reasonable price to British textile mills.

 The cotton and Grain Market Law was enacted in Berar in the
last decade of 19th Century. The Bombay Cotton Market Act
was enacted in 1927. this was the first law in the country that
attempted to regulate the market with a view to bring sound
market practices that would be fair to buyers and producers
First regulated market 1886 in Karanjia its was situated in
Hyderabad.
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 Objectives of Regulated Market
 To ensure reasonable gain to the farmers by creating
environment in markets for fair play of supply and demand
forces

 To regulate market practices and attain transparency in

transactions

 Aimed at providing proper method of sale, correct weighing,

prompt payment and various marketing related services

 Democratic set up to control and manage markets

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 Features of Regulated Market

 Market committee
 Area of operation
 Methods of sales
 Licensing of market functionaries
 Market levies or fees
 Information

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Cont…..

 SETTLEMENTS OF 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 expenditure.

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 Regulated Market In India
AS ON 31 . 03 . 2011
 India (Total) 7246
 Madhya Pradesh 517
 Uttar Pradesh 605
 Chhattisgarh 185
 Sikkim 1
 Chandigarh 1
 Andhra Pradesh 905
 Maharashtra 880
 Rajasthan 431
 Advantages /Benefits /Significances
 Fair dealing
 Market intelligence
 Improving rural communication
 Condition of perfect market
 Eradicating malpractices
 Open auction method is strictly followed

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 Limitations of Regulated Market
 Location and publicity

 Commission agent

 Payment of auction system

 Lack of incentive

 Defective transaction

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 Future of Regulated market in India
(a)Regulated

 Education

 Fair Price

 Online payment

 Role of media

 Storage infrastructures and Cold storage

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(b)Deregulated
 Balance of payment

 Price determination

 Unrealistic approach

 Loss for small farmers

 Higher price for consumers

 Conclusion
 Regulated markets has been successful in the sense that it
has helped the farmers to get better prices for their crops,
even if the deregulation of the regulated market is done,
the government still impacts the prices as has been seen in
the case of petrol & sugar..