163 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
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163
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
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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
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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
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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
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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
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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.
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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