CHAPTER POUR

MARKET REGULATION AND DEVELOPMENT IN ASSAM :

Agriculture has been playing the most impor­

tant role in the economy of Assam, which contributes

as high as about 50% of the state Domestic product (SDP)

and provides employment to more than three fourths of

the State's working force. The production of rice, the

most important cereal crop grown in the state reached

a new height of 32.70 lakh tonnes during 1990 - 91 against

1
28 lakh tonnes in 1985 - 86. The production of wheat

also increased from 1 lakh tonnes in 1985 - 86 to i . >5

lakh tonnes in 1990 - 91. The production of pulses and

oilseeds was 49 thousand tonnes and 1.69 lakh tonnes

during 1990 - 91 respectively. But the production of

jute came down from 11.78 lakh bales in 1985 - 86 -o

8.66 lakh bales in 1990 - 91.

Though the agricultural production has

been increasing over the years, the system of agricultural

marketing has not been fully developed as an integral

part of agricultural development in Assam.

There are about 650 rural markets in Assam

2
which serve on an average area of 8 to 16 Kms. Besides

1. "Statistical Hand Book", Assam, 1991, Directorate of

Economics and Statistics, Govt, of Assam, Guwahati.,
pp. 47-48
2. Mahanta, K.C., : "Regulated Markets Development
projects in Assam", (A.S.A.M.B.) Guwahati, 1984 p.10.
 : 81 :

these rural markets, there are 75 primary wholesale markets ’

4
and 30 secondary markets . In Assam, there are only .>

few Terminal markets. Some of the markets of the state

are also serving as assembling markets for the produce-

coming from the neighbouring states. It is interesting)

to note that on an average there is one wholesale market

per 776.6 Sq.Km. catering to a population of 1,97, OOf

in Assam against the all India average of one wholesale

market for every 526 Sq. Km. serving a population ol

1,20,000^. Thus it can be concluded that there is less

number of markets in Assam both in terms of area ana

population as compared to the national average.

3. Primary Wholesale Market: Primary wholesale market rs

such a market where the bulk of arrivals is frort
village or village hats. This market is periodically
held, either once or twice in a week or at long
intervals or on special occasion.

4. Secondary Market : Secondary market is such a

market where the bulk of the arrivals is from
other markets. Here transactions are generally
between wholesalers or between wholesaler* anc:
retainer. This market is usually situated in
the District Headquarters, important trade centres
or near railway stations.

5. Assembling Market : Assembling market is such

a market where goods are collected from big and
small towns and villages at a central place for
their further movement to the factory, Mill or
consumer etc. . Here both wholesallers and retailers
are dispersing the product.

6. Das, N.C., "Agricultural Marketing in Assam" in

Goswami (ed), Agriculture in Assam, (1989), Assam*
Institute of Development Studies, Guwahati, Assam
p. 234.
 : 82 :

4.1 MARKETING SYSTEM IN ASSAM :

The traditional system of agricultural

marketing in Assam can be divided into two categories

viz Primary Market and Terminal Market. In the primary

market farmers sell their surplus agricultural produce

to the village traders and agents of the millers and

wholesalers. Sometimes, marginal and small farmers have

to sell a portion of their surplus produce during the

harvesting season or just after the harvest when the

prices are depressed, in order to repay the loans taken

against standing crops. All the middlemen like village

traders, agent of wholesalers and millers, village maha lan

and money-lenders sell their procured crops to the whole­

salers and millers who operate in the terminal markets.

The wholesalers and millers (after milling in case of

paddy, wheat, mustard etc.) distribute these among the

consuming centres through retailers. The wholesalers

and millers used to sell out a portion of these produces

out side the State of Assam.

In case of Jute, the middlemen or the agent

of wholesalers purchase Jute from the growers and they

send it to the Jute Mills located in and outside the

State of Assam, more particularly to the Jute Mills located

in Calcutta. The traditional methods of marketing ef

Jute still prevail in Assam, as a result the jute growers

are deprived of getting fair prices from the middlemen.
 : 83 :

The difference between village and market prices of jute

per quintal in roadside villages in Assam is about Rs.10.00,

while it is as much as Rs.25.00 to Rs. 30.00 in the isolated

7
villages (Mahanta) . If the villager chooses to come

to towns ignoring distances, he has to waste his time

and even then he cannot be certain of a fair deal. This

picture must be changed in order to generate confidence

to the farmers for the better and promising future for

himself and it is only then that he would wholeheartedly

undertake to produce more. Now-a-days, the Government

of Assam procures jute from the growers through the Jute

Corporation of India (J.C.I.) for which the growers have

become free from the clutches of the middlemen. As regards

marketing of jute, once the Chairman of the Agricultural

Price Commission, Kehlon with its Member Secretary, Dhar

remarked, " in the case of jute the market infrastructure

continues to be so weak that in several markets, prices

fell below the support levels during 1980 - 81 session

The Government of Assam, therefore, should take more

care to develop a sound jute market with appropriate
strategy to save the jute growers from the clutches of

middlemen.

Hence, the farmers of Assam have been deprived

of getting remunerative prices of their produce due to

prevalence of defective traditional system of agricultural

7. Mahanta, K.C.; Op. cit., p-11.

8. Das, N.C.; Op.cit., p-231.
 : 84 :

marketing. The main defects from which the marketing

of agricultural produce suffers in Assam have been discussed

below -

i) Poverty and Indebtedness of the Farmers :

Because of poverty and indebtedness, unsatisfactory nature

of communication, lack of retaining power and the need

for finance, the farmers have to sell their produce soon

after the harvest is over at the very unreasonable prices

which stands as a most important defect of agricultural

marketing in Assam.

ii) Superfluous Middlemen : In Assam, majority

of the farmers dispose of their produce in the village

itself. The result is the interference of most middlemen

between the producer and the final consumer. In this

9
connection Ra^agopal states that the middlemen, in the

process, extracts a large share of the consumer's rupee

while the farmer gets only a small share. Hence, the

existence of a long chain of middlemen reduces the share

of the consumer price received by the actual cultivator.

iii) Lack of Grading and Storage Facilities :

The ignorance of the grower regarding the techniques
of harvesting results in considerable damage to his output.

A major vulnerability of the grower is the lack of emphasis

on grading and standardisation of his produces. The

9. Rajagopal ; 'Indian Rural Marketing' Rawat Publica­

tions, Jawahar Nagar, Jaipur, 1993, p.93.
 : 85 :

Consequence is that prices, production and quality of produce

bear no relationship to one another. Farmers often find

it difficult to secure higher prices for their superior

quality goods, due to lack of grading facilities in the

market. Besides, there is a general inadequacy of storage

facilities in the traditional markets in Assam. Traditionally,

'tc "ft

rice is stored in the 'Guchibharal' and the 'Gutibharal' ,

in Assam (Hazarika and Talukdar)^^. But these are not adequate

and scientific for storing the agricultural produce. As

a result, the farmers cannot sell their surplus produce

at the peak season when prices of agricultural products

become high. Further, arrangements for institutional marketing

in the state are grossly inadequate. Naturally, the marketable

surplus is adversely affected by all these factors.

* Guchibharal : Guchibharal is an outdoor granary. It

is eracted on bamboo 'mechang' supported by timbers/bricks
-cement pillers or by large wooden blocks. Walls are
generally of unplastered split bamboo and roofing material
is thatch or C.I. Sheets.

** Gutibharal : It is also an outdoor storage structure

for bulk storage of threshed paddy grains. It can be
used for long term storage of grains. The structure
stands on a strong wooden platform with mud plastered
bamboo split having supporting pillars of either timber,
cement or wooden logs. The roof is made of thatch.

10. Hazarika, C. and Talukdar, K.C.: Agrarian structure

and the Factors affecting Farm level storage for Rice
in Subsistence Agriculture - A case study in Jorhat
District of Assam,- Agricultural Marketing, A National
Level Quarterly journal on Agricultural Marketing,
Ministry of Agriculture, Govt, of India, 1989, vol.-
xxxii, no. 3. p.2.
 : 86 :

iv) Transport Bottlenecks : Transport bottleneck

is another perpetual defect of agricultural marketing

in Assam. The overall situation in this regard is far

from satisfactory. The existing transport arrangement

in the hinterland, i.e. from the growers place to the
primary markets is lamentably poor, and about 48% of
the total arrivals in the primary markets in Assam are
carried on head by the producers^. Hence, the grower

has to take his chances with the conventi

-onal mode of transport, leading to loss of both time

and value of his produce. The advent of monsoon makes

the situation still worse. The growers cannot overcome

this problem on his own, he has to sell his produce at

terms dictated by middlemen to him. Besides, most of

the small farmers cannot individually afford to make

satisfactory arragements for the sale of their produce

while remaining constantly in the clutches of middlemen.

As a result, these farmers have to face difficulties

in the process of marketing of agricultural produces

in Assam.

v) Lack of Market Information : The farmers

are also unaware of the trends in the market in terms

of demand, prices and other pertinent market information

which compell them to sale their produce at the very

low prices.

11. Das, N.C.; Op. cit. p.236.

 : 87 :

vi) Malpractices of Markets : In traditional

markets, there are some malpractices like manipulation

of weights and measures, adulteration etc. which stand

as a barrier in the agricultural marketing of Assam.

Over and above, many of the existing markets

are congested with little or no basic amenities. The

usual practice with most of the local bodies is to lease

out the market on yearly basis. The lesse collects market

tolls from the growers on the sale of their produce.

The storage facilities provided by the public sector

and the the co-operatives are also mostly inadequate.

Thus the producer-sellers have to face many problems

in selling their produce which adversely affect the produc­

tion of agricultural commodities in Assam. This situation

must be changed in order to generate confidence among

the farmers for a better and promising future for themselves

and it is only then that they would wholeheartedly undertake

to produce more. This is what the regulated markets in

Assam propose to achieve as early as possible through

out the state.

After all, marketing is the ultimate aim

of all producers. If we develop agricultural marketing,

we will be able to encourge farmers to produce more which

will induce them to part with a larger portion ; their

produce for sale in the market. More and more regulated

markets in the state may be the right answer. They can

 : 88 :

be of great help in removing the ills of the present

marketing system. Regulated markets should be abLe to

reduce the expenses of buying and selling, as also ensure

a fair support price for products, while saving the farmers

from exploitation.

4.2 MARKET LEGISLATION IN ASSAM :

The concept of regulation of agricultural

produce markets as an integral part of market reform

had been accepted in India long back and much has been

done during the last five year plans for developement

of agricultural marketing at the national level. But

the North-Eastern Region has very little progress in

this field. A beginning was made in the regulation of

agricultural produce market in the country in 1886 when

Karanja market was brought under regulation. Since then,

ai considerable progress has been made in this field.

But the progress achievedwas not uniform in all the

states and Union Teritories. Some States including Assam

were late in adopting this regulatory measure.

4.2.1 THE ASSAM AGRICULTURAL PRODUCE MARKET ACT, 1972 :

The market regulation in Assam has been

effective only with the passing of Assam Agricultural

Produce Market Act, 1972. The Act received assent of

the President of India on the 3rd Sept. , 1974 and became
 : 89 :

Assam Act XXIII of 1974. The rules for facilitating trie

implementation of this Act were framed in 1975. This

Act was amended in 1983 under the Assam Agricultural

Produce Market (Ammendment) Act, 1983 (Assam Act No. XIII

of 1983).

The Assam Agricultural Produce Market Ac1.,

1972 has been implemented in Assam with effect from 15 -

06- 1977 (vide Govt. Notification No. AGA/393/75/159 dt.
12 , is to
7- 5-1977). The main object of this Act "provide

for better regulation of buying and selling of agricultural

produce and the establishment of market for agricultural

produce in the State of Assam and for matters connected

therewith." The aim of this Act as incorporated herein

is to regulate buying and selling of agricultural produce

by establishing regulated markets in place of old ones

through this legislation, b'herescientific godowns, platforms

, display yards, traders shops, banks and post offices,

parking places, hygienic hotels, provision of drinking

water etc. are provided. The Assam Agricultural Produce

Market Act, 1972 provides for the establishment of a

Board and Market Committees with necessary powers for

the enforcement of market regulation and the Assam State

Agricultural Marketing Board was constituted on 24-09-1976

12. The Assam Agricultural Produce Market Act, 1975 ,

p-1.
 : 90 :

4.2.2 THE ASSAM STATE AGRICULTURAL MARKETING BOARD13 :

The Assam State Agricultural Marketing

Board is a statutory and an Apex Body constituted under

sec. 3(1) of the Assam Agricultural Produce Market Ac",

1972 for the enforcement of market regulation in Assam.
As per the provision of the Act, the State Government

may, for exercising the powers conferred on and duties

assigned to the Board, constitute the State Agricultural

Marketing Board consisting of a Chairman and 12 other

members to be nominated by the State Government as follows

a) One non-official as Chairman.

b) Officials of the Government of Assam as members :

i. Director of Agriculture,

ii. Director of Veterinary andAnimal Husbandary,

iii. Director of Panchayat,

iv. Director of Municipal Administration,

v. Registrar of Co-operative Societies,

vi. Secretary, Agriculture Department,

c. Non-officials as members :

i. One Agriculturist member of the Market

Committee,

ii. One representative from the Agricultural

Farming Corporation Act, 1973,

iii. Two progressive producers,

iv. One licence trader, and

13 . Annual Administrative Report of Assam State Agricul­

tural Marketing Board for the iear 1989, pp. 1-6.
 : 91 :

v. One from amongst the members of the Co­

operative marketing Societies represented

in the Market Committee.

The term of the office of the Board is

three years from the date of its first meeting or till

its reconstitution, whichever is earlier.

The Chief Executive of the Marketing Board

is the Secretary who is deputed by the State Government

from the Department of Agriculture. The five different

wings to assist the secretary are as follows :

i. Development wing : This wing is responsible for

developmental activities of the regulated markets. The

Deputy Secretary is the head of this wing. The Deputy

Secretary is assisted by two Marketing Officers and four

Marketing Inspectors.

ii. Engineering wing : All construction works for

infrastructure facilities in the market yards are undertaken

by this wing. An Executive Engineer is the head of this

wing and he is assisted by an Assistant Executive Engineer

(Civil) and Assistant Engineer (Civil) and other staff

in junior cadre.

iii. Accounts wing : The Main Functions of this wing

is to control and maintain of accounts. The Chief Accounts

 : 92 :

Officer is the head of this wing. He is assisted by one

Accounts Officer, One Internal Auditor Cum-Audit Officer

and other staff.

iv. Administrative wing : The administrative wing,

headed by an Assistant Administrative Officer is responsible

for administrative works of the Marketing Board.

v. Publicity wing : This wing undertakes publicity,

extension and liasion activities of the Marketing Board

and also guides Market Committees in this regard. The

Assistant Publicity Officer is the head of this wing.

He is assisted by a Publicity Assistant and Liason

assistant.

4.2.2.1 FUNCTION OF ASSAM STATE AGRICULTURAL MARKETING

BOARD :

The following powers and functions have

been assigned to the Board as per sub section (10) of

. 14
section 3 of the Act, 1972 .

i. The Market Committees are guided by the Board.

The Board can frame bye-laws for better marketing of

agricultural produce on co-operative lines for uniform

grading and standardisation of agricultural produce,
and for any other purposes to promote the interest of

the Market Committees as and when necessary.

14. Op.cit., 1972, p.ll.

 : 93 :

ii. The Board can sanction the budget of the Market

Committees•

iii. The Board examines the annual assesment of work

and progress of the committees sent by the Chairman of

the committees in the form of annual reports including

audited accounts of the committees for the preceding

financial year.

iv. If the Board in its opinion finds that the financial

position of the committee does not warrant the payment

of travelling and daily allowances and also the remune­

ration etc., if any, to the members of the committee

in the rates approved by the committee, the Board may

fix such scales of daily and travelling allowances or

remuneration as the Board may deem proper.

v. The Chairman or the Secretary of the Board or

any other employee of the Board not lower than the rank

of an Inspector authorised in this behalf by the Secretary

of the Board may at any time inspect, examine and check

the weighting instruments, weights, measures kept by

the committee.

vi. Reference from committees to any Government Department

other than District authorities and local bodies shall

be made through the Secretary of the Board.

 : 94 :

vii. The Chairman or the Secretary of the Board or

any other employee of the Board authorised by the Board

may at any time inspect and examine the records and

the accounts of the committee and issue such directions

to the committee as deemed proper and the committee shall

be bound to comply with such directions.

viii. The Board can issue instructions and directions

to the committees wherever necessary towards the ful­

fillment of the objects and purposes of the Act and the

committee shall be bound to follow such instructions

and directions.

ix. All the employee of the Market Committee snail

be under control and superintendence of the Board.

x. The Board also communicates with the State and

Central Government, Financial Institutions and other

organisations for obtaining financial assistance, guidance

in preparation of project reports for development of

markets and for implementation of the provisions of the

Act.

The supervision and control over the Board

and its employees rests with the State Government of

Assam. At present, the headquarters of the Board is in

Guwahati.
 : 95 :

The Marketing Boards, established in many

States and union Territories are not uniform in their

composition, power and functions. The Working Group on

. 1S
Agricultural Marketing (1990-95) constituted by the

Government of India made some useful suggestions for

uniformity in the general approach of the Marketing Boards.

According to the Working Group, the Acts should be suitably

amended in the light of the provisions recommended in

the Model Act. The Model Act, provides a substantial

representation for the Market Committees in the Board.

According to the Model Act, out of the seven members

to be nominated from among the members of the Market

Committees, five are to represent agriculturists and

two from traders in the Marketing Board. In this regard,

the Assam State Agricultural Marketing Board provides

for only two members from the Market Committees. Besides,

the Model Act envisages much wider official representation

in the Marketing Board which is also not found in the

Marketing Board of Assam.

The Assam State Agricultural Marketing

Board should follow the guidelines of the Model Act for

the better regulation of agricultural Produce Markets

in Assam.

15. Report of the Working Group on Agricultural Marketing

, (1990-95) Government of India, pp 3-6.
 : 96 :

4.2.3 MARKET COMMITTEES :

The responsibility of enforcing different

provisions of the Act, the rules and the bye-laws framed

thereunder for regulation of markets has been vested

with the market committees in all the States Act. The

market committees are corporate bodies, comprising members,

representing various interest involved in sale and purchase

of agricultural produce. Section 7(i ) of the Assam Agricul­

tural Produce Market Act - 1972 also provides for the

constitution of the Market Committee and sufficient powers

have been given to the Market committees (in section 15)

to implement the Act successfully for protecting the

interests of the growers and traders as well. According

to Section 8{i)^^ of the Assam State Agricultural Marketing

Act - 1972, a market committee is constituted by the

following fifteen members - namely : -

i. Seven Agriculturists - (elected by the

members of the Gaon Fanchayat in the market

area);

ii. Three members elected by the traders;

iii. One elected member by the co-operative
marketing societies.

iv. one nominated member by the Co-operative

Bank;

16 . The Assam Agricultural produce Market Act, 1972

pp.15-18.
 : 97 :

V. One nominated member by the State Government;

vi. one elected member by the local bodies;

vii. One member nominated by the Warehousing

Corporation.

At present. all the members including the

Chairman and the Vice Chairman are nominated by the State

Government against the provision of the Act.. The term

of office of the Market Committee is for three years.

A market committee is headed by a Secretary, sometimes

an Assistant Secretary with 5 to 7 Marketing Inspectors,

one Junior Engineer and other ministerial staff. The

Secretary is usually deputed from the Department of Agricul­

ture and appointed by the State Agricultural Marketing

Board of Assam.

The Assam State Agricultural Marketing

Board is responsible for supervision, control and monitoring

activities of Market Committees as per provisions of

the Act and rules.

According to the Model Act, the Market

Committee shall comprise of six agriculturists, two traders,

one from co-operative Marketing Society and two Government

nominees. The Model Act also suggests that there should

not be any representative from amongst the local bodies,

co-operative banks and warehousing corporation in tne

Market Committee. Over and above, the Model Act suggests

 : 98 :

that the Chairman should be elected by the elected memberv

of the Market Committee from among the representative;

of agriculturists. This suggestion has been made so tha

the interests of the producers can be protected effectively.

It is evident from the foregoing discussion

that the Assam State Agricultural Produce Market Act -

1972 is not similar with the Model act in respect of

constitution of the Market Committee. Therefore, there

is a need to make suitable amendments in the marketinq

act of 1972 in accordance with the Model Act and the

Market Committees should be constituted according to

the provisions of this amended Act, of 1972. Like other

States, a full-fledged independent Department of Agri­

cultural Marketing should also be set up to provide undivid­

ed attention to the agricultural marketing practices

and programmes in Assam.

4.2.3.1 Functions of Market Committee : According to

section 14 of the AAPM Act, the functions of market committe

shall be"^:

i. to maintain and manage the market yard ana ■o

control, regulate and run the market in the interect

of the agriculturists and traders holding licence from

the market committee;

17. Op. cit., 1972. p.24.

 : 99 :

ii. to regulate and control transactions in the marker

and to deal with licence holders who default, to opon

, close and suspend trade in any notified agricultural

produce, to settle dispute, levy and recover market charge:;,

fees on an agricultural produce, licence and other fees,

to impose fines and penalties.

iii. to act as a mediator, arbitrator or surveyo-,

in all matters of differences, disputes etc. between

the licencees or between them and agriculturists coming

as sellers of farm produce,

iv. to control and regulate the admission to the marker

and to prosecute and confiscate the goods of a person

trading without licence.

v. to prosecute or defend any suit, action, proceeding,

application or arbitration on behalf of the market committee

or otherwise as directed by the State Government.

vi. to purchase, hire or acquire any land for construction

of any house thereon or other movable or immovable proper-y

and other equipments for the purpose of its business

to raise fund from the Government.

vii. to do such other things as may be required for

the purpose of achieving its objects and requiremen-: s

of the Act.

4.2.3.2 Powers of the Market Committee : According o

Section 15 of the Act, the powers of the Market Committee

are as follows :
 : 100 :

i. a market committee shall have the power to regulate

entry of persons into the market, to supervise the behaviour

of the persons and to take disciplinary action against;

persons who fail to fulfill the conditions of the licence,

ii. every market committee shall levy and collect

a cess on the agricultural produce, bought or sold in

the market area,

iii. a market committee may appoint a sub-committee

from amongst its members for the conduct of any work of

the market committee,

Although, the above important functions

and powers of market committee have been assigned to

regulate the buying and selling of agricultural produce,

yet the Assam Agricultural Produce Market Act, has not

delegated some of the most important functions of Market

Committee, like the maintenance of stocks of fertilizers,

pesticides and giving grants for the construction of

road which are included among the functions of the Market

18
Committee in Madhya Pradesh . In Karnataka and Madhya

Pradesh, Market Committees have also been assigned duties

for taking measures for market stability. Besides, a

unique provision exists for the recovery of co-operative

dues through the market committee in Maharastra. Thus

the market committees in Assam have not been given some

18. 'Directorate of Marketing and Inspection, Govt.

of India, 'Proceedings of The National Workshop
on Regulation and Mangement of Agricultural Produce
Markets, Pune - Maharastra (India) 11-14 May,
1982, p.17.
 : 101 :

essential powers and functions for the better regulation

of agricultural produce of Assam.

4.2.4 DECLARATION OF MARKET YARDS :

According to the section (6) of the Assam

State Agricultural Produce Market Act - 1972, the State

Government may declare (i) any enclosure, building or

locality in any market area to be the principal market

yards or sub-market yard and (ii) any area including

all lands with the building thereon within such distance

of the yard or yards as it thinks to be the market proper.

Upto the year 1993, 13 principal markets and 19 sub-market

yards were declared in 9 districts by the Government

19
of Assam . But the State Government has not declared

any market yard or yards in the remaining 14 districts

of Assam till 1993. The Government of Assam should declare

some market yards in the remaining districts as per provisi­

ons of the Act on phased manner so that the defective

traditional system of marketing can beabolished from

the entire State of Assam.

4.2.5 NOTIFIED COMMODITIES :

According to the section 2(1) of the Assam

Agriculture Produce Market Act - 1972, "Agricultural

Produce" means and includes any produce whether processed

19. Official Source of Assam State Agricultural Marketing

Board, Guwahati, Assam.
 : 102 :

or non-processed of agriculture, horticulture, animal

husbandry, pisciculture, sericulture and forest as specified

in the schedule. The agricultural commodities which have

been notified by the Govt, of Assam under section 4(1)

of the Act are Jute (Baled and unbaled), Mesta, Sunhamp,

Paddy, Rice, Matikalai, Arahar, Mug, Turmeric, Ginger,

Chillies (green and dry), Betel-nut (processed and unproce­

ssed), Coconut, Betel leaves, Mustard, Molasses, Cattle

and Timber, (sawed and log). However, for each regulated

market, commodities have been notified seperately which

have been shown in Table 4.1. It is seen from Table 4.1

that all the agricultural commodities are not brought

under regulation by the Govt, of Assam. But it has been

proposed by the Govt, that in phased manner all agricultural

produce as per schedule will be brought under regulation.

4.3 PRICES OF NOTIFIED COMMODITIES IN THE REGULATED

MARKETS 20:

Regulated Markets do not fix the prices

of agricultural produce. They only act in regulation

of sale and purchase of notified commodities. The farmers

can get remunerative prices of their surplus produce

sold in the regulated markets. Generally, the farmers

quote prices of their notified commodities in the regulated

markets and if needed open auction may take place on

the basis of the quoted prices. The unit for which rhe

20. Govt, of India, Working of Regulated Markets in

India, Report, Vol. II , Directors of Marketing
and Tnsnent ion . N p>w D p I K i . 1 Q71 . n n _ i n 7 - l i f t
 : 103 :

prices are to be quoted is fixed in the bye-laws of th '

Market Committee. It is a general practice to conduc-

the auction of a particular commodity at only one spo~

at a time and not at several spots simultaneously so

that all the intending buyers of that commodity can partici­

pate in the auction. The highest bidder buys the commodity

from the farmer and the buyer issues receipts in proper

form to the farmer from whom the commodity is purchased.

On the basis of these records of sale and purchase, Market

Committee receives cessfrom the buyer. Thus, the main

objective of regulated market lies in this principle,

which intends that both the farmer - seller and buyer;

- trader are benefitted and nobody is cheated in the

regulated market.

4.4 ESTABLISHMENT OP REGULATED MARKETS IN ASSAM :

The regulation of agricultural produce

markets in Assam under the Assam Agricultural Produce

Market Act - 1972, is being implemented by the Assam

State Agricultural Marketing Board. In the year L9 7f■,

four markets namely - Howly, Dhing, Kharupetia and Gaunpur

21
were regulated . In 1978, 11 sub-markets were brought
22
under the ambit of regulation . Again 2 more principal

21. Government of India, - Regulation, Development

and Administration of Agricultural Marketing n
Assam - MRPC - No. 29, Deptt. of Rural Development ,
Directorate of Marketing and Inspection - Faridabari,
p. 11.
22. ibid. - p. 11
 : 104 :

markets were also regulated in the year 1979. Another

set of 6 Principal regulated markets were brought under

23
the purview of regulation in 1984 . The total number

of regulated markets in Assam comes to 32 in 1992-93.

It is comprised of 13 principal market yards and 19 sub-

market yards. The number of regulated markets alongwith

the dates and the commodities brought under regulation

in Assam up to the year 1992-93 is given in Table 4.1.

Table 4.1 indicates that the progress of

market regulation in Assam is very slow. It is distressing

to note that till the year 1992 - 93 there were only

9 districts (out of 23 districts) having regulated markets.

The number of regulated markets works out tofc>*21.8% of

24
the wholesale assembling markets in Assam . But in other

States like Andhra Pradesh, Haryana, Karnataka, Punjab

and Uttar Pradesh, the number of regulated markets worked

out to be 97.89%, 75.89%, 91.39%, 95.37%, 98.89% respectively

. 25
m 1988 . Thus the development of market regulation

in Assam is lagging behind some of the developed States

in India. There are a large number of primary markets

like hats, shandies etc., which are still out of the

23. ibid. - p. 12
24. Government of India - Directorate of Marketing
and Inspection - 50 years Service to the Nation,
New Delhi - 1985, pp. 28 - 29
25. ibid. 1985, pp. 28 - 29
 105

Table-4.1

LIST OF REGULATED MARKETS IN ASSAM

ALOGUITH THE DATE OF REGULATION AND THE COMMODITIES BROUGHT UNDER REGULATION
(1992-93} IN ASSAM

SI. District Principal Date of Commodities Brought under Regulation S ub-MBrkets D ata of C ammoditiea Rtoqht m<Sor
No. Markets R egulstlon R egula- Roguish l'*n
t ion
1 2 3 4 5 6 7 :
1. Ohubrl C ouripur 06.01.76 P eddy,Rice,3ute,Mustard,Matikalal, a .Biiaslp- 22.02.78 A 11 Commod 1* Ib * as •’**ution-l
0hania,Beta 1-nut,Betel leaves, At icanut, era ed in tha piiivlpai -uiko?.
Chlllies, Wheat
b .Chapar -do- - do •
c .Mankachar -do- - do -
2. Berpeta ) ouly I6.01.76 :uta.Mesta,Sunhanp,Paddy,Rice,Wheat, e .Barpeta 2.02.78 l 11 commodities as nantlon-
f ustard,natikalai,0hania,8atal-nut, Road td in the ptincipa! markot
{hlllies, Coconut. 1 .Kalgachle -do- - do -
'.Sorbhog -do- - do
i iaherihat 34.09.79 - do - ».Handle NA - do -
3. Oarrang (harupetla 36.01.76 lute,Masta.Paddy,Rice,Mustard-Seed, a.Bangka- 22.02.78 511 commodities as mention-
latikalal,Dhania,Betal-nut,Chillies, garh ad in the principal 'rwitknt
ate. b.Lalpooi -do- - do •
c.Bhakalp- NA - do •
are.
d.Udalgurl NA - do -
4. Nagaon 3hing 06.01.76 3ute,Masta,Sunhanp,Paddy,Rice.Uhaat,
Metikalal,Mustard, taenia,Chillies,
a.Rupahi 22.02.78 3ute, Meat a, Sunhanp, t’addy ,
Rica,Metikalal,Dheris.Batal}
1
Betal-nut ate, nut, Chillios,Cocot•,t .
b.Raha -do- -do-(not coconut) i
c.Ambagan -do- - do - 1

Lanka 24.02.84 3uta,Masta,Sunhanp,Potato,Rice,Wheat,

Araher,f1ug, Tarmeric, Ginger, Garlic, Nil
Chi Hies , Dhania, Betal-nut, Coconut,
Cattle,Betel leaves
S . Golaghat Golaghat 10.01.79 Paddy ,Rice,3uta,Matikalal,Arehar ,Mug, a.Oergaon NA Poddy,Rice,Arica-m.-,0otai -1
(Farkating) Tarneric,Garlie,Ginger,Gur,Coconut, nut.Gur etc.
Ohoni b , Chlilies(Mustard,Beta1-nut, b.Oakshln- NA Paddy ,Ri ca, './hoot,J» ".a,Mat 1-
Batal leaves. hengra. kalaijGur ,Mutj, Arehe. ,Ohanl n
Ginger etc.
c.Barpathar NA - do
d.Serupath- - do -
ar

s . North Lakhim- North NA Paddy,Rica,3ute,Matikalal,Arher,Mug, Nil - -

pur l.akhimpur Tarmaric,Cerlie,Ginger,Gur,Coconut,
Dhania,Chillies,Muatard,Batal-nut,
Betel leaves.
Chilapthar 31.08.84 - do -

. Kamrup Gorasuar 24.11.84 Paddy,Rice,Matikalal,3uie,Mustard, e.Rangia NA Paddy,Rice, iuta,Mu-lard,

ubeat,Ohania,Chillies,Betal-nut etc. Coconut,Gut, J'ljya,
Bljaynagar 31.OB.84 3uta,Mesta,Sunhanp,Paddy,Rice,Wheat, Nil
Matlkalai,Areher, Mug,Termaric,Ginger
Chllllea,Betel-nut,Dhania,Mustard,
Coconut, Cattle.
8. Jorhat Kemalabari 31.08.84 Paddy,Rice,3ute,Matikelei,Arahar,Mug, Nil
(nojuli) IBrmBrlc,GBrlic,Musterd,Gur.Coconut,
8atal-nut,Betel leave,Chillies,Dhania

9. Sonitpur Ohskajuli 24.11.84 3ute,Meats,Sunhanp,Paddy,Rice,Wheat, Nil

Matlkalai,Arahar,Mug,Tarmeric,Ganger,
Gerlie,Chillies,Betal-nut,Betel leave ,
Mustard, Dhania etc.

Nats s NA * Not available.

Source : 1} Govt, of Asaam-ASAMB (Official Source)
ii) Regulation,Development end Administration of Agricultural Marketing in Aasam,MRPC,No.2S,0eptt.of fhual On uiopment
Govt, of Indie, p.11.
Ill) Hand Book on Market Instiligance,1985-96,Oeptt. of Agriculture, Govt, of Assam.
 : 106 :

ambit of regulation. For a great majority of small farmer",

these markets constitute a focal point for disposing

of their produce. The real benefits of regulation can

reach the producers only when all the markets in tne

State of Assam are brought under the umbrella of market

regulation. Therefore, there is an urgent necessity to

devise means by which trading practices in these markets

could be improved. In this connection, it is highly nece­

ssary to conduct a field study for finding out the basic

problems of market regulation in Assam, which is devoted

in the next Chapters of this study.