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CHAPTER-VII

FUNCTIONAL STRUCTURE OF REGULATED MARKETS

Geographically, market is a well define area varying from a small village

market to a metropolitan centre. It plays a vital role not only for the sale transactions

of the agricultural goods and services but also enhance the economic development of

the nation. Market towns not only transfer the modernization to the rural areas but

also bring the spatial development (Johnson, 1965). Therefore, the attempt has been

made in this chapter to deal with the spatial and functional characteristics of the

regulated markets.

Regulated Markets are the administrative creation of the State Government in

order to manage the wholesale transactions of agricultural produce. Regulated

markets are non-periodic entities have not undergone evolutionary process of market

systems (Wanamali 1981, Hugar 1984, Nayak, 1994, Mulimani, 2002). It is a market,

where the trade activities takes place under set of rules and regulations and all basic

infrastructure like auction and display platforms, shops, godowns, offices, drinking

water, cattle shed and canteen etc., are available at one place and provide proper

marketing environment both to the traders and producer sellers for effective sale

transactions.

In India, there are 41,836 regulated markets have been functioning, of the total

499 Regulated Markets are functioning in Karnataka State. These markets have

become magnet to attract the different geographical space and develop a kind of

spatial interaction with mobility. Regulated markets are the hopes of the nation and

164

supposed to establish a direct linkage to the far off interior villages for uplifting the

rural masses above the poverty line.

Therefore, most effective and direct measures to improve the conditions of the

markets are taken by the Government through regulating the markets and the market

practices by legislation. The regulated markets provide a unique system of marketing

that is only beneficial to developing countries like India.

The first attempt to regulate the Indian Agricultural Market was made as early

as 1886. Karanja was the first Regulated Market in India. It was situated in the then

Hyderabad residency. After that, the first Cotton and Grains Markets Law was

enacted in Berar Act in 1897. It was passed to make available supplies of pure cotton

at reasonable price to the textile mills at Manchester. This law provided a

representative committee which controlled the markets and bazaars.

The process of regulation received wider acceptance in 1928 when the Royal

Commission on Agriculture and General Cotton Committee appointed by the

then British Government recommended ‘Regulation of Market’ as a solution to

agricultural marketing problems. In pursuance of this recommendation, then

Government of Bombay was the first to enact the Bombay Cotton Markets

Act in 1928. Infact, it was the first law in the country which attempted the regulations

of markets with a view of evolving sound market practices which are fair to the

producers as well as the traders.

In 1929, the Bombay Provincial Banking Enquiry Committee was appointed to

point out the defects in the working of the traditional markets. The Hyderabad

165

Agricultural Markets Act was passed in 1930. In 1933, the Madras Commercial Crops

Marketing Act was passed and it applied to Cotton, Groundnuts and Tobacco. In

1935, the Central Provinces Agricultural Produce Act was passed. The Berar act was

modified in 1935 by the Central Provinces Cotton Markets Act. The Bombay

Agricultural Produce Market Act of 1939 was replaced by the Bombay Act.

Meanwhile, in 1948, it was extended to other crops. The total number of regulated

markets increased after the passing of these acts in the country. In 1939, it was 122

and gone up to 283 by 1950, due to the APMC Act in 1968, the regulated markets

have been started functioning and their number has increased to 41,836 regulated

markets in the country.

Since then, further acts have extended the scope of agricultural legislation to

the commodities other than cotton. Today, market legislation in India covers almost

all agricultural as well as horticultural produce and live stocks. Now most of the

regulated markets are functioning by and large as multi-commodity markets. There is

however the specific markets, which deal in simple commodity, like tobacco,

vegetables or livestock.

As per as the study region is concerned, the first regulated market yard was

established at Byadgi taluka in the year 1948 followed by Ranibennur, Haveri and

Savanur talukas in 1953, 1954 and 1956 respectively. Haveri being a district

headquarter, enjoys the status of Main Regulate Market in the study region. After the

gap of six years, the Hirekerur regulated market yard was established in the year 1963

and in 1976 the regulated market yard has been established at Hangal taluka. After a

166

long period of time, the Shiggaon regulated market yard has come up in the year 2002

(Table: 6.1). Thus, all the six talukas in a study region is having each regulated market

yard and Haveri taluka has one main regulated market functioning according to their

set rules and regulations. Apart from these main and regulated market yards, study

region has ten sub-market yards (Fig. 7.1) well distributed in six talukas except

Shiggaon taluka. The Shiggaon taluka does not have the sub market yard. Due to the

proximity to Hubli is quite nearer and is the most important commercial centre of

Dharwad District. Therefore, the farmers are attracted by the Hubli regulated market

which is one of the biggest markets of the Karnataka State.

Table: 6.1 REGULATED MARKETS OF HAVERI DISTRICT

Source: Field Survey 2011 and Haveri District Gazetteer (2002).

Thus, a regulated market is a market, that has rules and regulations with

respect to the price of the product sold and the methods or the procedure in

which the transactions take place (Pillai and Bagavathi, 1999). Market

regulations are enacted by the State Government, assisted by the Central Directorate

Sl.

No.

Name of the

Talukas

Year of

Establishment of

Main Regulated

Market

Year of

Establishment of

Regulated Market

Yards

Settlements

Year of Establishment of

Regulated Market Sub

Yards

1. Byadgi - 1947 Chikbasur 1984

Motebennur 1987

2. Hangal - 1976 Akki-Alur 1976

3. Haveri 1962 - Guttal 1960

Karajgi 1987

4. Hirekerur - 1955

Masur 1965

Rattihalli 1965

Hansbhavi 1965

5. Ranibennur - 1953 Halageri 1968

6. Savanur - 1956 Yalvigi 1992

7. Shiggaon - 1992 - -

Fig. 7.1

167

168

of Marketing and Inspection. The central directorate gives financial assistance for

developing regulated markets in the economically backward areas and the areas

producing commercial crops like cotton and tobacco.

The main objective of the regulated markets is to safe guard the interest of the

producer sellers and raises the standard of the local markets. The market committee

frames and administers the rules and laws. All business transactions are conducted

within the market area under the set rules and laws. It looks after the weights and

measures and fixes the charges.

There are several studies on regulated markets all over India made by the

scholars in different disciplines such as economics, commerce and business

management etc., few attempts have been made by the geographers also to study the

functions of regulated market. Therefore, an attempt is also made in the present study

to pursue the work based on the similar studies carried out in different geographical

regions.

In this connection, the contribution of Prof. E.A.J. Johnson (1965-70) is

admirable one. Prof. E.A.J. Johnson recommended regulated markets on Indian rural

scenario with spatial perspectives point of view. Accordingly, the new regulated

markets were created at each district level in Indian rural scenario for the wholesale

transactions of agricultural produce. Johnson’s Regulated Market Model is based on

the principles of Central Place Theory, a unique geographic contribution made by Sir

Walter Chirstaller in 1933 and Losch’s (1954) idea of transport network and

169

marketing principles. On the basis of these theories, Johnson’s suggested the

Regulated Market Model in Indian.

OBJECTIVES OF THE REGULATED MARKETS

• to safeguard the interest of both the farmers and the traders.

• to make the producer seller free from the malpractice pertaining to the use of

incorrect weight and measurements and ensure a fair deal to the farmers.

• to bring down the market charges to the minimum to regulate buying and

selling operations of agricultural produce.

• to create conditions of fair competition to reduce the seasonal price differences.

• to promote mutual confidence among all the parties at the deal to improve the

efficiency of marketing.

• to provide the basic facilities and amenities in the market yard.

JOHNSON’S THEORETICAL MODEL

Johnson (1965-70) opined that, there exists an inadequate representation of

market structure with urban centers of India. This gap to a certain extent can be

bridged by having many more market towns. The newly created market towns tend to

modernize their institutional structure and once it is done, rural India would be better

served with market facilities.

Johnson also recommended the creation of sub yard in unserved distant areas.

Johnson did not exactly specify the nature of settlement in which sub yard is to be

located. Johnson (1960), visualized various problems related to the Indian regulated

markets in relation to available transport network within the market areas. Based on

170

the Losch’s (1954) idea of transport network and marketing principle, Johnson built

the model on the assumption that, the economic landscape will be made of contiguous

market areas of specific geometric shapes such as circles of hexagons and all the

participants shall have adequate access to the market.

Johnson proposed to make distinctions between theoretical zones in the market

area such as fully served, partially served and unserved area etc., at different distance

norms. According to him, radial distance of 5 miles was treated as fully served, while

5-10 miles partially served and beyond 10 miles unserved. Hence, the attempt has

been made in this regard, by considering the transport network of the study region, the

buffer zone for the Johnsons Theoretical Model has been prepared by taking the radial

distance of 0-10 kilometers, 11-20 kilometers and above 21 kilometers. The table: 6.2

reveals the fact about the fully served, partially served and un-served areas by the

regulated markets of the Haveri district. Further, it indicates that, on an average 12.87

percent of the settlements are comes under the category of fully served followed by

30.41 percent of settlements in the category of partially served areas. Both the zones

collectively served the area with 43.28 percent of the settlement (306) as a served

zone by the regulated market yards and sub yards. The remaining 401 settlements

constitutes 56.71 percent of the area is remained as an un-served zone, mainly due to

the inadequate infrastructure of the rural interior areas.

171

Table: 6.2 REGULATED MARKETS AND SETTLEMENT DISTANCE

Source: Personal Computation, 2011.

The market-wise analysis of the data indicates that, Savanur market is a small

regulated market area consisting of 66 settlements. The majority of settlement comes

under fully/ partially served zone i.e., 40 settlements and constitutes 60.60 percent.

On the contrary, settlement-wise, Hangal is the biggest regulated market yard area

with 152 settlements, served 42.76 percent of settlements as fully/ partially served

zones and 57.23 percent will remains unserved by the regulated market yard of

Hangal. The Shiggaon regulated market yard has largest share of 22.34 percent in

fully served zone with 21 settlements which is maximum in the study region. Area-

wise, Ranibennur regulated market yard is the biggest in the district, but it is

interesting to note that, it has 6.42 percent of proportion of fully served zone, 23.85

percent in partially served zone and 69.72 percent in un-served zone, this is mainly

because of the vast territory and same can be noticed in Hirekerur regulated market

yard also. However, all the regulated market /yards, more or less equally exhibits the

similar percentage share of area in the un-served zone in comparison with district

average, except Byadgi (49.25), Savanur (39.39) and Shiggaon (40.42) market yards.

Sl.

No.

Name of the

Regulated

Market/

Yards

Area (in

Square

Kilometers)

Served Zone Total no. of

Served

Settlements

Un-Served

Zone

(21- above)

Total No. of

Settlements Fully Served

Zone (0-10 kms)

Partially Served

Zone (11- 20 kms)

1. Byadgi 436.00 09 (13.43) 25 (37.31) 34 (50.74) 33 (49.25) 67

2. Hangal 773.00 18 (11.84) 47 (30.92) 65 (42.76) 87 (57.23) 152

3. Haveri 799.00 14 (15.55) 25 (27.77) 39 (43.33) 51 (56.66) 90

4. Hirekerur 806.00 13 (10.07) 26 (20.15) 39 (30.23) 90 (69.76) 129

5. Ranibennur 907.00 07 (6.42) 26 (23.85) 33 (30.27) 76 (69.72) 109

6. Savanur 539.00 09 (13.63) 31 (46.96) 40 (60.60) 26 (39.39) 66

7. Shiggaon 588.00 21 (22.34) 35 (37.23) 56 (59.57) 38 (40.42) 94

Total 4848.00 91 (12.87%) 215 (30.41%) 306 (43.28%) 401 (56.71%) 707 (100%)

Fig. 7.2

172

173

Based on the Johnson’s Market Model, the buffer zone is created around the

regulated market and yards that is shown in the Fig. 7.2. As per as the periodic

markets are concerned, they are playing an important role in the retailing activities

predominantly as compared to the wholesale activities by the regulated markets. The

present study has clearly observed that, there is no integration between periodic

markets and regulated markets in the study region. If there will be a co-ordination

between these two types of marketing activities definitely, the farmers are getting

much benefits and the extension of these activities with integration in the study region

would be helpful for spatial extension and could be the indicator for regional

development.

FUNCTIONAL CHARACTERISTICS OF REGULATED MARKETS

As per as the functions of the regulated markets is concerned, the functional

analysis is based on the parameters which have been chosen such as market area,

market arrivals, commodities traded, methods of sales, licensing of market

functionaries, settlements of disputes and market cess collected etc.

NOTIFIED MARKET AREA / AREA OF OPERATION

The size of the regulated market area greatly varies from one regulated market

to another. It depends upon the population size of regulated market centers and the

extent of its territory which commands around it. Therefore, with the approval of the

State Government, the hinterland of each regulated market is normally declared as

notified market area.

174

In the study region, Ranibennur Regulated Market notified area, manages the

wholesale transaction of agricultural produce and constitutes 18.70 percent of the total

district area followed by Hirekerur with 16.62 percent, Haveri with 16.48 percent and

Hangal with 15.94 percent. The Savanur, Shiggaon and Byadgi have 11.11 percent,

12.12 percent and 8.99 percent of the market area respectively in the study region

(table.6.3).

Table: 6.3 MARKET AREA AND MARKET ARRIVALS (In Quintals)

Source: Field Survey 2011 and Personal Computation.

MARKET ARRIVALS

Market arrivals normally depends upon the size of the regulated market, the

infrastructure facilities available in the market and accessibility of transport to reach

the market. The table: 6.3 reveals the fact that, in the year 2008-09 Haveri being a

district headquarter, receives 1/3 of the district total arrivals and constitute 1/6th of the

market area. The rest of the arrivals are managed by the remaining six regulated

market yards of the study region. This indicates that, Haveri regulated market attract

more number of farmers to bring their produce from the other market area. Apart from

this, the Hangal market yard witnessed a net increase in attracting arrivals from 12.89

Sl. No. Name of the Regulated

Market/ Yards

Market Area in

Square Kilometers

Market Arrivals

2008-09

Market Arrivals

2009-10

1. Byadgi 436 (8.99) 32232 (8.91) 393145 (26.65)

2. Hangal 773 (15.94) 46596 (12.89) 496578 (33.66)

3. Haveri 799 (16.48) 127073 (35.16) 144841 (9.81)

4. Hirekerur 806 (16.62) 43624 (12.07) 91438 (6.19)

5. Ranibennur 907 (18.70) 102947 (28.48) 335449 (22.74)

6. Savanur 539 (11.11) 7639 (2.11) 11629 (0.78)

7. Shiggaon 588 (12.12) 1250 (0.34) 2000 (0.13)

Total 4848 (100) 361361 (100) 1475080 (100)

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percent in 2008-09 to 33.66 percent in 2009-10. Similarly, the Byadgi market yard

also shows the 17.74 percent of increase in market arrivals. In the year 2009-10, it is

interesting to note that, apart from Hangal and Byadgi regulated market yards,

remaining all the five market yards of the study region shown declining tendencies

towards the market arrivals. This is mainly due to the improvement in the market

infrastructural facilities and attractive prices in the market yards of the Hangal and

Byadgi. The one more important thing is that, farmers normally sell their bulk

produces in nearly regulated markets / yards and other non-bulky perishable goods are

sent to other markets.

COMMODITIES TRADED

There are 113 notified commodities under regulation that are traded through

the different regulated markets of the study region during different seasons of the

year. It is practically not possible to deal with all those commodities transacted in the

regulated markets of study region, but only major commodities traded in each

regulated market/ yards has been discussed. The study region produces varieties of

crops such as Chilly, Paddy, Maize, Groundnut, Wheat, Jowar, Cotton, Bajra, Tur,

Sunflower, Safflower, Soya bean, Savi, Millets, and Pulses etc. Some of the produce

is consumed within the taluka or district and some produces are exported to the other

district or outside the State/ Country. Such produces that is moving out from each

regulated market after fulfilling the local need is considered the marketable surplus.

The major commodity traded in all regulated market/ yards is Maize, whose share is

48.73 percent of the total trade followed by Chilly 24.69 percent, Paddy 15.35 percent

176

and Cotton 7.15 percent. The share of wheat is 1.87 percent, oil seeds of 1.51 percent

and Jowar of 0.70 percent. The details regarding the transactions of major crops are as

follows: (Table: 6.4).

Table: 6.4 MAJOR COMMODITIES TRADED DURING 2009-10 (In Quintals)

Sl.

No.

Regulated

Market/ Yards Maize Paddy Jowar Wheat Chilli Oilseeds Cotton

1. Byadgi - - - - 393145 (99.32)

- -

2. Hangal 569791 (72.94)

245590 (99.79)

3624 (32.42)

26384 (87.99)

- 1509 (6.23)

163 (0.14)

3. Haveri 101998 (13.05)

- 122 (1.09)

2215 (7.39)

- 2009 (8.30)

38494 (33.59)

4. Hirekerur 73349 (9.39)

505 (0.20)

- - 2696 (0.63)

8 (0.03)

6565 (5.73)

5. Ranibennur 23696 (3.03)

- 334 (2.99)

1385 (4.62)

- 5771 (23.85)

60366 (52.67)

6. Savanur 12273 (1.57)

- 7096 (63.49)

- - 12904 (53.32)

7765 (6.78)

7. Shiggaon - - - - - 2000 (8.26)

1250 (1.09)

Total 781107

(48.73)

246095

(15.35)

11176

(0.70)

29984

(1.87)

395841

(24.69)

24201

(1.51)

114603

(7.15)

Source: Field Survey 2011 and Personal Compotation.

Maize is an important food crop of the district and cultivated in all the talukas

of Haveri district. Its contribution in the total trade is very significant. The Hangal

taluka contributes 72.94 percent of the total trade/ transaction of this commodity in

the district followed by Haveri 13.05 percent, Hirekerur 9.39 percent, Ranibennur

3.03 percent and Savanur 1.57 percent.

Chilly is the most important cash crop of the district mostly grown in

Hirekerur, Haveri and Savanur talukas. Byadgi Chilly variety is very famous as per as

the quality is concerned and when it is dried, it will get deep red colour. It is traded to

foreign countries and has worldwide market. It is traded in Byadgi market with a

share of 99.32 percent.

177

Paddy is another important food crop of the study region traded particularly in

the regulated market yards of Hangal and Hirekerur and contributes 99.79 percent and

0.20 percent respectively. It is grown in both Rabi and Kharif season. In the hilly zone

of Hangal taluka, Basmati variety of paddy is more significant.

Cotton is also one of the important cash crops of the study region particularly,

Ranibennur taluka has 52.67 percent of the total trade share of this commodity

followed by Haveri 33.59 percent. Many Cotton textile industries are there in

Ranibennur taluka. The cotton is exported mainly to Chennai, Tamil Nadu, West

Bengal, Maharashtra and Andhra Pradesh.

Oil Seeds are the important cash crop in the study region. Groundnut,

Sunflower, Safflower, Savi and Soyabean are the major oilseeds in the study region.

Savanur contributes 53.32 percent of the total trade share of the district followed by

Ranibennur as 23.85 percent.

METHODS OF SALES

In regulated market and yards, 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

All the market functionaries including traders, stockiests, ginners, exporters,

warehousemen, commission agents, importers and processors working in the

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regulated market / yards have to obtain a license from the market committee after

paying the prescribed fee to carry on their business. The license is valid for ten years.

After every ten years the license is renewed. The hamals have only one year license

periodicity. Every year they have to renew the license. The licensed traders have to

keep proper record and maintain accounts in accordance with the buy-laws of the

market committee.

SETTLEMENTS OF DISPUTES

Disputes arising between producer sellers and traders by reason of the quality

of the produce, accounts and deduction of unauthorized charges are solved by the

market committee. This avoids the legal complications and unnecessary expenditure

in the regulated market/ yards of study region.

MARKET LEVIES OR CESS

Growers and traders have to pay the market fees which are collected on the

basis of value of volume of a commodity bought and sold in the markets. The market

authority use to collect 1.5 percent of market cess over the values of commodities

traded in the market yard and sub yard. Sometimes, it may be based on cartload or

truckload. In addition to this, the authorities also collect yearly license fees from the

various market functionaries. The amount collected is used for the smooth functioning

and development of the trade transactions in market yard or sub yards.

The table: 6.5 reveals the fact that, in the year 2009-10 the amount of the

annual turnover in the entire district was 1632.34 crores and the amount of cess

collected was 23.06 crores. In the study region Ranibennur market yard is the biggest

179

market and contributes 40.04 percent of turnover and collected 41.20 percent of total

cess in the district. The turnover in the Haveri regulated market was recorded as 23.82

percent along with 21.55 percent of collection of cess. Apart from these markets, the

Byadgi market yard is concerned to the transaction of Chilly only with the turnover of

19.75 percent and 18.74 percent of cess is collected. The remaining market yards such

as Hangal, Hirekerur, Savanur and Shiggaon have collected less than ten percent cess

and also contribute less than ten percent to the turnover in the district.

Table: 6.5 ANNUAL TURNOVERS AND CESS COLLECTION

Sl.

No.

Name of Regulated

Market/ Yards

Total Turnover

(Rs. In Crores)

Percentage of

Turnover

Cess

(Rs. in lakhs)

Percentage

of Cess

1. Byadgi 322.31 19.75 432 18.74

2. Hangal 67.96 4.16 150 6.50

3. Haveri 388.76 23.82 497 21.55

4. Hirekerur 129.56 7.94 144 6.24

5. Ranibennur 653.65 40.04 950 41.20

6. Savanur 49.47 3.03 97 4.21

7. Shiggaon 20.63 1.26 36 1.56

Total 1632.34 100.00 2306.00 100.00

Source: Field Survey 2011 and Personal Computation.

CATTLE MARKETS

Agricultural being the main occupation of the district, equal importance is

given for marketing of cattles. The livestock trade was brought under regulation act of

the State Government in 1972. The livestock trade takes place in many markets on

their respective market day. In the study region, there are many cattle markets where

the Bullocks, Bull, Cows, Buffaloes, Sheep and Goats are the common animals sold

on market day. Marketing of cattle is arranged by the local regulated market

180

committee and five rupees per cattle is collected as market fees. In addition to the

regular weekly cattle markets, special cattle fairs are held on special occasions like

Basavajayanti, Makar Sankranti and Dasara etc., associated with local jatras of

important deities. These cattle markets are held for about 15 to 30 days. These jatras

are generally held after harvest, but before the commencement of mansoon. Among

the special cattle markets held at the time of jatra are Devaragudda (Mailar Jatra),

Hukkerimath jatra at Haveri are very important. Following are the places, where the

weekly cattle markets are held are Haveri, Savanur, Ranibennur, Akki-Alur, Naregal,

Hansbhavi, Masur, Shiggaon, Hulgur and Kunnur.

REGULATED MARKET COMMITTEE

In regulated markets, dealings are regulated or controlled through a market

committee. The committee consists of representatives of farmers, traders, commission

agents, local bodies, co-operative societies and the Government.

Table: 6.6 REGULATED MARKET COMMITTEE

Source: Personal Computation, Field Survey 2011.

Sl. No Types of Members Method of Representation No. of Members

in the Market

Committee

1. Agriculturalist Elected by the Agriculturalist 7

2. License Traders Elected License Traders 2

3. License Commission

Agents Elected by the Licensed Commission Agents 1

4. Taluka Co-Operative

Marketing Society

Nominated by the State Govt. from Co-

Operative Marketing Society 1

5. Directorate of

Agricultural Marketing Nominated by the State Government 1

6. State Government (one

belong to SC/ST) Nominated by the State Government 2

Total 14

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It is clear from the table: 6.6 that, the agriculturalists have 50 percent of share

in representation of the committee. The Chairman and Vice- Chairman are elected

among the farmer’s representatives. This shows the importance of agriculturalists in

the day to day market affairs and in the administration of the regulated markets. The

formulated market committee has a period of 5 years. The day to day work in the

regulated markets is usually looked after by the secretary.

According to the by-laws of the market committee, the committee is

responsible for the overall management and regulation of market operations. Its main

functions are issuing licenses to the market functionaries, supervising of sales,

rationalizing the market charges, disseminating the market news, providing the

amenities in the market yard, settling the disputes and economizing the operations in

the markets.

FINANCE OF MARKET COMMITTEE

The marketing committee gets its finance from the borrowed funds

(Government loans), Government subsidies, grants and other sources including fine,

market fees and license fees etc. Property income includes rent on godowns, stalls,

canteens, interests on Government securities, sales of grass grown on the yards, sale

of manures, fees like registration fee, license transfer fee, copying fees, certification

fee, dispute fee, water and weighmen charges etc. The fund is utilized for the

following purpose:

1. Maintenance and improvement of the market and its buildings.

2. Maintenance of standard weights and measurements.

182

3. Salary and pension of the staff.

4. Payment of interest on loans and

5. Collection of market information.

Thus, the regulated markets were the hopes of the nation and were supposed to

establish a direct linkage to the far off interior villages for uplifting the rural masses

above the poverty line. Therefore, economic progress and market development are

interdependent. The regulated market also plays a vital role in rural welfare. In fact,

whatever developments can be done through regulated markets in a region is directed

towards rural development. The Raith Sanjivini Insurance Scheme, Short term Pledge

Loan Scheme and Janashri Insurance Scheme are name of the welfare schemes for

producers / farmers from the Government through the regulated markets in the study

region. It can be said that, the establishment of regulated markets itself is a welfare

activity for farmers and establishment of rural markets is a further step in this

direction.

Regulated market support a wide range of retail shops in a towns or rural areas.

The hierarchy of regulated markets in any state reflects the regional pattern of

development. In fact, these markets are the symbol of regional or spatial unity.

183