BANKING TRADE AND COMMERCE

REGULATED MARKETS

Marketing of agricultural produce was fraught with frequent malpractices and irregularities which were not conducive to the interests of the agriculturists in the past. As the peasant was ignorant and economically handicapped the traders used to exploit him. Realising the ill effects of the unfair practices on marketing the Royal Commission on Agriculture (1927) recommended to the government, the necessity of regulating this business. Accordingly, the Government of Bombay enacted the Bombay Cotton Markets Act in 1927. Subsequently the Bombay Principal Banking Enquiry Committee (1931) also stressed the need for protection to the agricultural community in the disposal of marketable surplus by establishing a chain of regulated markets. The Bombay Cotton Markets Act which regulated only cotton trade was replaced by a more broad based Act, viz. the Bombay Agricultural Produce Markets Act in 1939. This Act brought the sale and purchase of a number of commodities under the purview of the enactment.

The principal objectives of this Act are, (1) to bring about equity in bargaining power among the agriculturists and traders, (2) to promote mutual confidence, (3) to prevent malpractices and (4) to give a fair deal to the peasants.

The Bombay Agricultural Produce Markets Act purports to regulate market practices. The price of agricultural commodities brought into the market is settled by open auction or open agreement. Variations in this rule are not allowed. The produce is arranged in heaps or bullock carts near the adat shops of the various general commission agents who are licensed by the market committee. The general commission agents or adatyas, as they are called, serve as intermediaries between the agriculturists and traders. They are entitled to get commission at certain rates stipulated by the market committee. The prospective purchasers inspect the produce before bidding. As soon as the bargain is settled the adatya prepares an agreement paper giving the agreed price. The officials of the market committee supervise all these operations. After the sale is effected the buyer takes the delivery of the produce on the market yard and pays the value of the goods to the agriculturist or his general commission agents on the same day. Weighing of the produce is done by the licensed weighmen on the market yard itself. Weighing of cotton and chillis is allowed to take place outside the market premises. The weighing equipment is provided by the adatyas. Coolies (hamals) on the market yard are licensed by the market committee.

Cattle, sheep and goats are sold by open agreement system. This system does not differ much in content from the system of open auction.

The Act has clearly defined the market charges deductible from the sale proceeds. The authorities of the market committee do not allow the traders to deduct unauthorised market charges, such as, dharmadaya, goshala, kasar, sut and temple charges. The recognised charges include market cess, adat commission, weighing and hamuli. This has in consequence reduced the burden on the agricultural sellers.

The market authorities encourage the agricultural sellers to bring the produce to the market yard in pure condition. This assures better price for better produce.

The entire modus operandi of marketing is closely watched by the officials of the market committee. The code of business conduct is set and disputes are solved by arbitration. The market functionaries, viz.. general commission agents, weighmen and hamals are under the control of the market committee.

Under the provisions of the Bombay Agricultural Produce Markets Act. the market committees comprise selected representatives of agriculturists and of traders as well as nominated members from government and local bodies. They are under the overall control, of the Director of Agricultural Marketing and Joint Registrar of Cooperative Societies, Maharashtra State, Poona. The Co-operation and Industries Officer of the Zilla Parishad looks after the working of the market committees in the district, and guides them in respect of their day to day affairs.

Another feature of considerable signicance in regard to the market committees is the facility of dissemination of information about prices and market news. The daily prices and arrivals are displayed on the notice board after the sales are completed. The price trends prevailing at important markets in the district as well as outside are announced for information of the agriculturists before the auctions take place. Market news relayed from the Akashwani are made available through radio sets at the market yard.

It may be noted that the entire Dhulia district has been brought under the purview of the Bombay Agricultural Produce Markets Act of 1939 and its subsequent amendment in 1961. The following market committees are functioning in the district.

Besides, it is proposed to establish sub-market yards at Dhadgaon, Ranale, Wanyavihir, Borad, Lamkani, Mhasawad, Vadali, Pimpalner and Nizampur. The necessary survey reports and proposals are being forwarded to the concerned authorities. Thus the network of regulated markets in the district will be complete.

Dhulia.

 Dhulia is one of the oldest regulated markets in the State. It was established in September 1930 under the terms of the Bombay Cotton Markets Act of 1927. Subsequently provisions of the Bombay Agricultural Produce Markets Act of 1939 were made applicable to Dhulia market and a number of other agricultural commodities were brought under regulation.

The commodities regulated at Dhulia [Cotton was the only commodity regulated upto 1942,] comprise cotton (ginned as well as unginned), groundnut, jowar, wheat, bajri, udid, math, mug, chola, sesamum, gram, chillis (wet and dry), mangoes, onions, gul, sheep and goats.

The number of licensed dealers and market functionaries in the year 1962-63 is given below:—

Besides the principal market yard at Dhulia, there is a sub-market yard at Shirud. The total turnover of trade at Dhulia market was of the order of Rs. 5,70,40.218 and at Shirud Rs. 16,08"035 in 1963-64. The turnover of trade in 1962-63 was Rs. 4,51,65,659 at Dhulia and Rs. 13,93,276 at Shirud.

Cotton and groundnut are the most important commodities traded at Dhulia.

The following table gives the statistics of turnover of trade at Dhulia:

TABLE No. 26

STATISTICS OF TURNOVER OF TRADE AT DHULIA MARKET DURING 1958-59 TO 1963-64

contd.

The following statement gives the statistics of turnover of trade in cotton and groundnut at Dhulia market during the period from 1943 to 1953:

All the commodities are sold by open auction. This assures fair prices for the commodities of good quality. Weighment of cotton is done at the premises of the purchaser, whereas that of all other commodities is done on the market itself. The metric units of weights are used.

After the price is determined an agreement, called Kabulayat, is made. The kabulayat is countersigned by an official of the market committee.

The Dhulia market is well furnished with various facilities to the agricultural sellers as well as purchasers. The market yard is very spacious, and is furnished with electric lights, wells, water taps, water cooler, weighing sheds, raised platforms and good roads. The Maharashtra State Warehousing Corporation has constructed warehouses for the benefit of the sellers as well as purchasers. Another warehouse has been proposed by the District Sale and Purchase Union, There is a branch of the Dhulia District Central Co-operative Bank which facilitates banking transactions at the market yard.

Two co-operative marketing institutions are functioning as general commission agents in this market.

Dondaicha

Dondaicha is another important agricultural market in the district. . The predecessor of the present agricultural produce market which was then termed as the 'cotton market' was established in 1939 under the Bombay Cotton Markets Act of 1927. Subsequently, however, it was brought under the purview of the Bombay Agricultural Produce Markets Act of 1939. As such, other agricultural produce was also brought under regulation. The commodities regulated at present comprise cotton, groundnut, chilli (dry as well as wet), jowar, bajra, wheat, math, mug, chavali, udid, sesamum, castor seed, gram, tur, gul, and cattle.

Under the jurisdiction of the market committee there is a principal market yard at Dondaicha, and sub-market yards at Nardhana, Sindkheda and Betawad. The official market area of each yard extends over a radius of five miles (eight kilometres) around the respective yards.

The number of licensed dealers and market functionaries in 1961-62 is given below:—

The value of turnover of trade was Rs. 3,09,96,297 at Dondaicha, Rs. 80,65,068 at Nardhana, Rs. 29,95,765 at Sindkheda and Rs. 89,282 at Betawad market in 1963-64.

Groundnut and chilli are the most important commodities of trade at Dondaicha. The turnover of the trade in groundnut, cotton and chilli during 1948-1953 is given in the following statement.

Arrivals of important Commodities at Dondaicha market*

(Figures in number of carts)

* Annual Administration Report, A. P. F. C, Dondaicha, 1952-53.

The total turnover of trade and value thereof during 1962-63 and 1963-64 is given in the following table:—

TABLE No. 27

VOLUME OF TRADE AT DONDAICHA MARKET COMMITTEE DURING 1962-63

AND 1963-64

(Figures of turnover in quantals)

The Dondaicha market yard is spacious, and provides the necessary facilities to the agriculturists and traders. A warehouse of the Maharashtra State Warehousing Corporation is situated in the premises of the yard.

Transport of merchandise is facilitated by the Bhusawal-Surat railway line. There are also good motorable roads connecting Dondaicha market with Dhulia, Nandurbar and Surat.

Nandurbar.

The Nandurbar market was brought under the purview of the Bombay Agricultural Produce Markets Act in 1948 when trade in cotton, groundnut, tur, gram and castor seed was regulated. The business in mug, udid, math, chavali, sesamum, alashi, khurasani, ambadi, chilli and gul was brought under regulation in 1950, that of wheat, jowar and bajri in 1954, and that of rai, fenugreek, kulthi, ajwan, shepa, and cattle in 1955. The market yard is spacious and is equipped with the necessary facilities.

The market functionaries licensed by the market authorities comprise general commission agents (46  [Number in 1962-63.] ), purchasers (197), cattle purchasers (11), cattle dalals (6), weighmen (45), warehouseman (1) and assistants (163). The market committee derived an income of Rs. 27,091 by way of licence fees and Rs. 24,738 by way of market fees in 1962-63.

The following table gives the annual arrivals of various commodities in the market:—

TABLE No. 28

 VOLUME AND VALUE OF TRADE AT NANDUHBAR, DURING 1962-63

The regulation of transactions in agricultural produce is beneficial to farmers. Proper supervision and guidance by officials of the market committee have brought lasting gains to the agricultural class. The market is provided with a warehouse of the Maharashtra State Warehousing Corporation, since December 1959.

Shirpur.

The transactions in agricultural produce at Shirpur were regulated in 1948. Consequently trade in groundnut, sesamum, udid, mug, tur, gram and cotton was regulated in 1948. The provisions of regulation were extended to math, chawali, alashi in 1950, to wheat, jowar, bajra and cattle in 1954, to sheep and goats in 1955, and to rice, kulthi, cotton seed, gul, chilli and castor seed in 1961. Thus, almost all the produce has been brought under regulation.

The Shirpur Market Committee has maintained a principal market yard at Shirpur, whereas, there are sub-market yards at Holnanthe and Vikharan. They together cover up the entire Shirpur taluka.

The Shirpur market is provided with the necessary amenities of godowns, warehouses, electric lights, water supply, roads and sanitary blocks.

The following table gives the volume and value of arrivals at the market yard and sub-market yards during 1962-63 and 1963-64:—

TABLE No. 29

ARRIVALS AT SHIRPUR MARKET (FROM 1962-63 TO 1963-64)