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CHAPTER NO.1
INTRODUCTION
Agriculture is the single largest sector of Pakistans economy. It is a dominant driving
force for growth and the main source of livelihood for 62% of the countrys population. It
accounts for 21% of the Gross Domestic Product (GDP) and employs 45% of the total work
force. As such agriculture is the centre of the national economic policies and has been designed
by the government as the engine of national economic growth and poverty reduction. The
performance of agriculture sector has been weaker than target during 2009 as against the target
of 3.8% and last years performance of 2%. Agriculture this year is estimated to grow by 4% on
account of bumper wheat, rice and maize crops estimated as 23.42, 6.9 and 4.0 million tones
respectively. Major crops accounting for 32.8% of agriculture added registered stellar growth of
7.3% against 7.7% last year (GOP, 2010).
Traditionally, the government establishes wholesale markets. There are stereotype designs
for the wholesale market. Commission agents are allotted/sold space for shop, which are
constructed at their own on almost standard pattern. No space is specifically allotted to sub
wholesale or retail activity, which seems to an essential component of sale and purchase inside
the wholesale markets (FAO, 1995).
In Punjab there are 152 grain markets, 135 market committees. These wholesale grain
markets are working satisfactorily, primarily for the benefit of growers. More grain markets are
still needed to provide farmers with effective and profitable marketing outlets for their produce.
The private sector plays an important role in the management, operation and control of
wholesale markets. The wholesale marketing system in the private sector is comprised of number
of institutions. However, for the growers, Commission Agent is the major institution because
he is the person who is in direct contact with growers at market place. There are many instances
in which commission agents have been reported to be charging higher marketing charges than is
allowed under the law. These mainly include Chung, thalla, high rates of commission, high
interest on advances etc. Although the government has established a system for support prices of
selected agricultural crops but that too is manipulated by arhtis (Commission Agent) who are
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involved in the procurement of major food crops from farmers and then selling the same to the
procuring agencies. The situation is further aggravated by congested and poorly organized
market places leading to higher marketing costs due to long waiting and delays (Mahmood, A. et
al, 2002).
Market committees are the statutory bodies, set-up by the government for day-to-day
management of wholesale markets. A market committee is constituted by member drawn from
amongst farmers (always in leading majority), traders, market operators, consumers and
government nominees. The committee members are appointed by nomination while the chairman
and vice-chairman are appointed through election from amongst the members. The Agricultural
Produce Market Act; 1939 is the basic document that grants authority to the market committees
to control and regulate various operations in the wholesale market. This act has been amended
from time to time by the Provincial Governments to suit to their respective socio-economic and
political conditions (GOP, 1988).
It has been reported that wholesale marketing system of agricultural produce in general
and horticultural produce in particular, is often inadequate in Pakistan. The existing system
neither maximizes benefits to producers nor to consumers. Corrupt market intermediaries appear
to fleece upon the small incomes of both the farmers and the consumers. It occurs due to the
existence of the number of market imperfections viz., poor market management, poor market
operation, poor market regulation etc. The wholesale markets are usually congested due to
unsuitable location or an inappropriate mixture of wholesale and retail functions or as a result of
mismanagement. The problem is further compounded by poor market organization as a result of
defective planning, over-crowding, traffic jams, poor cleanliness and poor hygiene, lack of
discipline, encroachments, unfair trade practices, poor and ineffective legislation etc. The reality
of wholesale markets in country is the most of the basic principles of efficient wholesale
marketing are not adhered to delays (Mahmood, A. et al, 2002).
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The present study has been planned with the purpose to seek information on the working
of wholesale grain markets in Punjab in the context of these allegations. In particular the research
seeks to explain the status of Faisalabad wholesale grain market. The specific managerial and
operational aspects, physical facilities in the market, trade practices, and performance of public
and private sector institutions shall thoroughly be examined and the factors influencing
efficiency of the wholesale market investigated.
The study is planned with the following objectives:
OBJECTIVES
1. To study the operational performance of Faisalabad wholesale grain market.2. To identify the major constraints in the wholesale market management, operation and
planning.
3. To find out marketing margins of various market functionaries in the wholesalemarketing of major items.
4. To suggest measure for improving the working of wholesale grain markets in Punjab ingeneral ant that of Faisalabad wholesale grain market in particular.
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CHAPTER NO. 2
REVIEW OF LITERATURE
Review of literature means to look again (re-view) at the literature in the related areas
(Leady, 1989). It highlights the findings of related studies and eliminates the possibilities of
unnecessary duplication of efforts.
Mushtaq (1971), in case study entitled An Economic Appraisal of Institutional Frame
work in the Marketing of Agricultural Commodities concluded that marketing margin was an
increasing function of a number of intermediaries. This should apparently suggest that a decrease
in marketing margin could be achieved by eliminating some of the intermediaries from the
existing marketing channels. But after the quantification of the various services rendered by all
the intermediaries, it became clear that except for the village dealer, the profit of all other
intermediaries was justifiable under the present marketing conditions.
Siddiqi (1979) conducted a study on Marketing of Agricultural products in Sindh in order
to assess the complexity of marketing organizations. The study examined the infrastructure of
marketing system, estimated production cost and marketing margins, analyzed price trends and
computed per unit marketing cost and the break down of consumer spreading on selected fruits,
vegetables and pulses.
Nigam (2000) conducted a study on the performance of Agricultural wholesale market in
India. He observed that most of the agricultural commodities markets operate under the normal
forces of demand and supply and disposal of produce in the wholesale market were through open
auction. While studying the problems, it was found that the shortage of unloading and parking
areas, weighing facilities, storage areas, places to stay overnight due to marketing delays were
major problems.
Jatiyanuvat (2000) studied the agricultural wholesale marketing system in Thailand. He
found that middlemen mainly determined the marketing systems of agricultural products in
Thailand. He observed that there was a tendency that farmer could not negotiate favorable price
because the products of good and bad qualities were mixed. Auction system with product
grading could solve this problem. He observed that the cooperatives hardly played and role.
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CHAPTER NO. 3
METHODOLOGY
The present study should have been conducted at Punjab level. Keeping in view the
limitation of a students researcher in terms of finances and time, the scope of the present study
was, however, confined to Faisalabad district.
The research was undertaken on the following aspects of wholesale grain market.
1. Wholesale Market Management.2. Wholesale Market operations and Regulations.3. Wholesale Market Planning.
A.WHOLESALE MARKET MANAGEMENTy MANAGEMENT
The managerial control of wholesale markets normally vests in the hands of the market
committee (members of which are elected from amongst the growers), market intermediaries and
others nominated by the government. The present research investigated managerial aspects of the
wholesale market. The research looked at various aspects such as constitution and composition
of market committees and the role of the market committee in discharging various functions. The
limitations faced by the market committee in discharging the assigned role were also noted.
B.WHOLESALE MARKET OPERATIONS AND REGULATIONSy MARKET OPERATION
Different activities are being carried out in the wholesale grain markets. As such, buying,
selling and handling of produce, brought by the producers in the market are the major operations
carried out in the market. Data on various market operations viz.; transaction methods, rentals,
fees and charges, produce handling procedures, market information etc, is collected by
interviewing a selected number of the growers, commission agents, pharias and retailers.
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y MARKET REGULATIONSWholesale markets are regulated under agriculture produce market ordinance, 1978 &
general rules, 1979. Several amendments in the ordinance (rule) have been made overtime. The
research investigated the relevance of various provisions of the ordinance. Under the prevailingsocio-economics conditions of the market.
C.WHOLESALE MARKET PLANNINGThe spectacular growth of population in Faisalabad District has generated the need for
proper planning of wholesale markets. This aspect has received paramount importance in view of
expansion of the city and migration of population to the district from rural areas. The research
sought to investigate various steps for proper planning. Various managerial, operational and
planning aspects of market were studied by collecting primary data.
SELECTION OF RESEARCH AREA AND RESPONDENTS
The research was conducted in the wholesale grain market of Faisalabad, which is a major
international grain market.
SELECTION OF RESPONDENTS
Five growers of major grains producer wheat, rice maize, Bajra and gram, were selected
from the district at random. Five commission agents and pharias operating within the premises of
Faisalabad grain market were also taken at random. Five retailers purchasing grains. Three
market committee employees i.e. Secretary Market committee, inspector and sub-inspector were
interviewed for the collection of necessary data on management, operation, control and
regulation of the wholesale grain market.
COLLECTION OF DATA
Separate questionnaires were developed for each group i.e. producer, commission agent,
pharia, retailer and market committee employees. The questionnaires were filled in by the direct
interview method with respondents.
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DATA ANALYSIS
Data collected were edited, tabulated and analyzed by employing appropriate statistical
tools and the share of producer and different market intermediaries in the consumer rupee was
calculated. In addition, marketing margins of commission agents, pharias and retailers wereworked out by employing relevant statistical tools.
A. ARITHMETIC MEANAverage= X =
X/ n
Where:
X = value of the variable
N = Number of observations
X = Total sum of variable
B. DETERMINATION OF MARKETING MARGINS OF MIDDLEMENMarketing margins of a middleman involved in the marketing of grains is the difference
between total payments (costs + purchase price) made by a marketing middleman and prices
received by him (sale price of grains). This was calculated by using these methods.
Absolute margin of a middleman (Am)
Am = Pr (Pp +cm)
Percentage margin of a middleman (Pm)
Pm = {Pr (Pp + cm) x 100} / Pr
Am = absolute margin
Pp = purchase price of a middleman
Pr= retail price of a middleman
Cm = total cost of a middleman
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C. DETERMINATION OF TOTAL COST OF MARKETINGTotal cost incurred on marketing by producer and market functionaries involved in sale
and purchase of grains till it reaches to ultimate consumers were computed by using following
simple expressions:
Ct = c1 + c2 + c3 ++cn
Ct = total cost
C1 = cost of first item
C2 = cost of second item
Cn = cost of nth item
D. PRODUCERS SHARE IN CONSUMERS PRICEIt is the price received by producer expressed as percentage of the retail price (i.e. the
price paid by the consumer). It was calculated by using the following formula:
Ps = Pf / Pr x 100
Where
Ps = producers share in consumers rupee
Pf = producers price
Pr = retail price
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LIMITATIONS
Following limitations were encountered during the course of research study:
1. The respondents usually hesitated in providing the needed information and reservedespecially while answering questions about their incomes, profits and about their actual
volume of business. They concealed information due to various fears, regarding increased
taxation on income and/or government measures to be taken for an effective tax recovery
system.
2. Major restrictions encountered in data collection were lack of written records with almostall market functionaries involved in marketing process. There was a general tendency to
inflate expenditure and deflate incomes by the market functionaries. However, every
possible effort was made through cross-questioning in order to minimize the extent of
errors.
3. Commission agents were reluctant to tell their accounts, although they maintained it.Pharias and retailers did not keep record about their incomes and expenditure. The
interviewer had to relay upon their verbal statements and personal assessment.
An utmost effort was made to gain good degree of confidence and to elicit requested
information during the process of data collection by introducing the respondents that the
researcher was a university student and not a representative of any government department.
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Chapter No. 4
RESULTS AND DISCUSSION
This chapter presents findings of research on the working of wholesale grain market
Faisalabad. The managerial operational & planning aspects of the market are thoroughly
thrashed & loopholes in this regard outlined.
MARKET ORGANIZATION
The organization of wholesale market largely depends on local socio-economic
conditions and political situation of a given region. Market committee Faisalabad purchased
the land for the establishment of new wholesale grain market in 1979-80. Commission agents
were allotted space on property right basis for the construction of shops to build on standard
design. The ownership of auction platforms, parking places etc. was, however, vested eighth
the government.
BRIEF PROFILE NEW GRAIN MARKET FAISALABAD
A new grain market was established on Dajkot road near at the end of Jhang bazaar,
on an area of 15 Acer, 1 Kanal and 14 Marla on the state land by the market committee
Faisalabad, where plots were allotted through open auction to the commission agents on
property right basis.
Table 4.1:Salient Feature of New Grain Market Faisalabad.
Market Location Regulated/non-
regulated
Operational
area
Date of
operation(year)
Managing
authority
New grain
market
Dajkot road
Faisalabad
Regulated
(public)
15 Acre, 1
Kanal, 14
Marla
1980 Market
committee
Faisalabad
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PHYSICAL FACILITIES IN THE MARKET
New grain market has been established with the financial assistance of market
committee Faisalabad. The construction work of the market started in 1979. The work was
completed within one and half year. Physical facilities in the market are very good there is a
proper approach road in the market, Mosque and Banks in the market.
Table 4.2: Provision of Major Physical Facilities in the Market .
Sr. # Infrastructure Number
1. Shops 5312. Covered auction platforms Nil3.
Open auction platforms 283
4. Offices 015. Roads 056. Truck stand Nil7. Cycle stand 028. Animal shed Nil9. Guest-house Nil10. Dispensary Nil11. Mosque 0212. Weighing bridge Nil13. Water tank 0114. Toilets 0415. Bank 0516. Post office Nil17. Approach roads 03
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AREA / SPACE ALLOTTED TO VARIOUS MARKET FUNCTIONARIES
IN THE MARKET
Commission agents, pharias and retailers were the main categories of middlemen
operating in the market. The data on area allotted to these market functionaries by the market
committee are presented in table 4.3.
Table 4.3: Area / Space Allotted to Various Market Functionaries.
Categories of market
functionaries
Business place in the market Business points allotted
Commission agents Shops 248
Retailers Shops 78
Pharias Shops 22
MARKET FUNCTIONARIES
1. ARHTIS / COMMISSION AGENTSCommission agents are those individuals who sell products through auction in the
market by charging their commission. The commission agents are licensed under the Punjab
Agriculture Produce Markets Ordinance, 1978 and have their own business place in the
market.
2. PHARIASThe pharias (sub wholesalers) purchased commodities from commission agents in the
market through open auction & subsequently sold that to retailers generally. Pharias have no
business place in the market; they are station on, the roadside & in front of the coveredauction platforms. The commission agents charge rent from the pharias for providing space
to them.
3. RETAILERS
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The retailers also operate within the wholesale market. They also purchased from
wholesaler and than sell to ultimate consumer. Most of the operator enjoyed political backing
for undertaking their business in the market.
MARKET MANAGEMENT
The management of the market is the sole responsibility of the market committee. The
government by its notification establishes a market committee for every notified area. Market
committees all over the country were dissolved and the management of the wholesale
markets placed under the control of administrators appointed by government.
CONSTITUTION OF MARKET COMMITTEE
According to the Punjab Agricultural produce markets ordinance 1978, Faisalabad
elected market committee consist of seventeen members as determined normally under law.
Out of 17 members one member is appointed by government from amongst the employees of
the Agricultural Department, Government of Punjab.
Table 4.4: Constitution of the Market Committee.
Members Number
Growers 09
Traders / commission agents 05
Market operators 01
Consumer 01
Govt. Nominee 01
Total 17
The remaining members were appointed by the Govt. of a panel of name
recommended by the Zila Council, equal to twice the number of vacancies in a manner
provided under the act.
SALIENT FEATURES OF MARKET MANAGEMENT
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Respondents were inquired about the performance of erstwhile elected management
structure i.e. the market committee, 13.33% of the respondents opined that constitution of
market committee was non-transparent while 13.33% viewed that duties and function of the
market committee were not clearly understandable to them.
Table 4.5: Salient Features of Market Committees (Total no. of respondents 15).
Sr. # Statement Strongly
Agree
Agree Disagree Not sure
1.Constitution of market
Committee was transparent
And non-political
10
(66.67%)
01
(6.67%)
02
(13.33%)
02
(13.33%)
2.The function of the market
Committee were clearly
Understandable to the
Different market functionaries
06
(40%)
05
(33.33%)
02
(13.33%)
02
(13.33%)
3.Market committee discharge
There functions to the
Satisfaction of market
Functionaries
04
(26.67%)
05
(33.33%)
04
(26.67%)
02
(13.33%)
4.The department of E&M
Regularly monitored the
Activities of market
committee
10
(66.67%)
02
(13.33%)
- 03
(20%)
5.Appropriate institutional link
Existed b/w relevant nation
Building departments
06
(40%)
05
(33.33)
02
(13.33%)
02
(13.33%)
DUTIES OF MARKET COMMITTEE
The market committees performed various viz. use of market facilities, good conduct
of market parties, adjudication of disputes arising out of market transaction, collection of
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charges and fees maintenance of the market premises and related facilities collection and
dissemination of market information etc.
Almost 33.33% of the respondents viewed that rules and the market committee did not
implement regulation.
Table 4.6: Duties of Market Committee (Total no. of respondents 15).
MARKET OPERATION
Different types of business activities were undertaken within the market. Amongst others,
major business activities include selling, buying, and handling of the farm produce.
The importance aspects of market operations are discussed below.
1. MEANS OF TRANSPORTATION FOR BRINGING PRODUCE IN THE MARKETA good road system and means of transpiration are the basic prerequisites for an efficient
marketing system. The growers for bringing their produce in the market adopted different means
of transportation. About 70% of growers were using trucks, 15% Mazda van, 5% pickups, 5%
trolley and remaining 5% used various other miscellaneous means of transport (rehra, cartload).
Sr. # Major function/ duties of market
Committee under the Act.
Progress of performance
Yes No Not sure
1. Enforcement of provisions of theAct and the rule and laws made
There under the notified market Area
08
(53.33%)
05
(33.33%)
01
(6.67%)
2. Licensing of various market function,And to renew, suspend or cancel
11
(73.33%)
03
(20%)
01
(6.67%)
3. Market development 06(40%)
04
(26.67%)
05
(33.33%)
4. Collection of market fee & other charges 11(73.33%)
02
(13.33%)
02
(13.33%)
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Table 4.7: Different Means of Transporting Produce in the Market.
Sr. no. Mode of transportation Growers relying on transport
(percent)
1. Truck 702. Mazda van 153. Pickup 54. Trolley 55. Miscellaneous
(Cart / Rehra, etc.) 5
2. SALIENT FEATURES OF MARKET OPERATIONSThe produce is brought into the market at the risk of sellers and remains as such till it is sold.
Though under the statutory provisions, market management and the commission agents are
obliged to arrange for proper space, shelter and safety of the produce.
Table 4.8: Market operation.
Sr.# Statement Strongly
Agree
Agree Disagree Not sure
1. Market committee, ensures
Fair trade practices in the
Market
02
(13.33%)
08
(53.33%)
03
(20%)
02
(13.33%)
2. Trading hour in the market
Are strictly followed by
Various market functionaries
- 08
(53.33%)
04
(26.67%)
03
(20%)
3. Damages or loss of produce 08
(53.33%)
06
(40%)
01
(6.67%) -
4. Sufficient market information
Is provided to all the market 07 04 02 02
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Functionaries by the market
committee
(46.67%) (26.67%) (13.33%) (13.33%)
DATA ON EXPENDITURE BY EACH OF THE VARIOUS MARKET
FUNCTIONARIES
1. GROWERS EXPENDITUREi. Transportation, packing and
loading.
ii. Commission.
iii. Other deduction.iv. Labor charges.
2. COMMISSION AGENTS EXPENDITUREi. Shop rent
ii. Electricity, telephone.iii. Entertainment.iv. Water charges.
v. Management charges.vi. Taxes.
vii. Bank interest if any.viii. Miscellaneous.
3. PHARIAS EXPENDITUREi. Adda rent.
ii. Labor charges.iii. Carriage & other handling
charges.
iv. Market association fee.v. Wastage.
vi. Munshiana.
4. RETAILERS / BUYERS EXPENDITURE (IN GRAIN MARKET)i. Cleaning.
ii. Washing.iii. Grading.iv. Labor.
v. Transportation.vi. Electricity.
vii. Loss in wastage.
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MARKET INSPECTION
Market inspection is needed to ensure compliance with sanitary standards and regulation,
weights and measures, grades and standards, and where appropriate price control. This is usually
done through visits by sub-inspectors, and whom action is supplemented by inspector of market
administration thus to make sure that market regulation and fair-trading practices are observed.
MARKET REGULATION
Almost 26.67% of the market functionaries recorded that market committee employees
over charged the licensee fee and 53.33% did not agree with the statement that satisfactory
inspection and quality control measure. About 16.7% respondents opined that market committee
did not have suitable arrangement for the disposal of solid waste. And 33.33% of the
unauthorized produce and encroachments.
Table 4.9: Market Regulation.
Sr.# Statement Strongly
agree
Agree Disagree Not sure
1. Charging of license fee 07
(46.67%)
04
(26.67%)
02
(13.3%)
02
(13.33%)
2. Satisfactory arrangement 04
(26.67%)
08
(53.33%)
01
(6.67%)
02
(13.33%)
3. Disposal of solid waste 08
(53.33%)
07
(46.67%) - -
4. Kind of encroachments
-
07
(46.67%)
04
(26.67%)
04
(26.67%)
5. Unauthorized sale of
produce
04
(26.67%)
05
(33.33%)
02
(13.33%)
03
(2%)
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MARKET MARGIN
A marketing margin is the percentage of the final weighted average selling price
taken by each stage of the marketing chain. The margin must cover the costs
involved in transferring produce from one stage to the next and provide a reasonable
return to those doing the marketing.
In this if a farmer receive 2250 rupee per quintal of wheat, then the artist get his 37.75 rupee
commission, the processor gain 72.8 rupees and retailer get his profit 142 rupees and now the
gross market margin is 250 rupees and net market margin is 214.8 rupees and the end consumer
price is 2500 rupees of wheat / Q. in table 4.10.
Table 4.10: Marketing Cost, Margin and Profit of wheat
Reno. Item Rs./Q
1. Selling price of farmer/ purchase of wholesaler 2250
2. Commission paid by farmer @ rs.1.5% 37.75
3. Farmer net price 2216.25
4. Processor (cost)
i. Wholesale price 2250
ii. Broker share 0.20
iii. Palledare @ 1.20% 27
iv. Total cost of wholesaler 2277.20
5. Wholesaler sale price/ retailer purchase price 2350
6. Gross margin of wholesaler 100
7. Net margin of wholesaler 72.8
8. Retailer (cost)
i. Retailer purchase price 2350
ii. Transportation cost 02
iii. Market fee / Q 01
iv. Misc. 05v. Total cost of retailer 2358
9. Retailer sale price / consumer purchase price 2500
10. Gross margin of retailer 150
11. Net margin of retailer 142
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Gross market margin in the supply chain = 2500_
2250 = 250
Net market margin = 214.8
%age share of the farmer in the consumer price = farmer net price/consumer price X 100
= 250/2500 X 100 = 90%
%age share of the wholesaler in the consumer price = profit of wholesaler/consumer price X 100
= 72.8/2500 X 100 = 2.92%
%age share of the retail in the consumer price = profit of retailer/consumer price X 100
= 142/2500 X 100 = 5.68%
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Chapter no. 5
SUMMARY, CONCLUSION & SUGGESTIONS
This chapter seeks to summarize important findings of research on the working of grain
market Faisalabad. A comprehensive study on the subject may be conducted at the Punjab level
so that market imperfections are thoroughly highlighted and understood at higher level. The
present research has, however, identified some of the weaknesses in the managerial, operation
and planning aspects of market.
SUMMARY OF MAIN FINDINGS
1. A new market was established with the financial assistance of the market committeeFaisalabad, where the shops are allotted to commission agents through auction. The
physical infrastructure including street light, covered auction platform has not been
provided but some other facilities like approach road, roads with in the market, water
supply, telephone, shops and light have been provided in the market.
2. At present, about 248 commission agents and 78 retailers do their businesses in themarket.
3. About 70% of the respondents were happy with the physical facilities available in themarket.
4. Market committee was setup in the provinces for managing day-to-day operation ofthe regulated wholesale market.
5. The response of respondents about constitution of the elected market committee andtheir role in performing various duties assigned to them was very encouraging. About
30% of the respondents opined that the constitution of the market committee was
non-transparent. Some of the respondents believed that the market committee, did not
discharge their functions properly according to law.6. Market committee performed many functions in the wholesale market starting from
the provision of basic infrastructure to the collection of market fee and other charges.
7. Different means of communication were adopted by the growers for bringing theproduce in the market. The produce from far flung areas brought by Trucks & Mazda
vans. Etc.
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8. Open auction is the prefer mod of sale but sale by negotiations through thecommission agents (under-cover bidding) was common.
9. Commission agents and other market operators are not obliged to chargeremuneration higher than prescribed limits. Nevertheless commission agents in the
market charged higher rates of commission.
10.The produce is brought to the market at the risk of sellers and remains as such till it issold. The different market operations viz; storage, buying, and selling etc are not
properly performed. Trade malpractice and higher rate of commission are quite
common in the market.
SUGGESTIONS
1. The biggest problem is the absence of proper physical facilities in the market. These physical facilities like covered sheds and guesthouse for the growers should be
provided.
2. Pharias have no business place in the market. They are compelled to pay rent to thecommission agents, which is illegal. This practice should be stopped by the market
committee.
3. The market committee should improve its supervisory and monitoring role, as thereprevailed many mal-practices in the market due to the laxity shown by the committeein this regard. The market committee should protect the interest of growers so that
they are able to get a fair price of their produce.
4. Market committee should effectively and efficiently check the auction on road.5. Market committee should be invigorated to check the illegal compulsory deduction
viz; Chung, munshiana and water charges etc. which are made from the sale proceeds
of growers in the market. The committee should ensure that the commission agents do
not charge illegal commission from the growers.
6. In the present marketing system the retailers net margins were found relativelyhigher. Effective competition to retailers through weekly marketing system (itwar
Bazaar) may be created to reduce their margin. Growers should be encouraged to
organize their own marketing out-lets by setting up retail shops in different localities
of the town/ cities for the sale of their produce.
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REFERENCES
1. Mushtaq, M. 1971. An economic appraisal of institutional framework in the marketing ofagriculture commodities. A case study of T.T. Singh Market. M.Sc. thesis, University of
Agriculture Faisalabad.
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