Beginning from the agriculturists, down to the final consumer, one
can find a long chain of different functionaries. Let us discuss these
functionaries under two heads viz.
i) Functionaries at village level
ii) Functionaries at Mandi level
(1) Functionaries at village level
Some important functionaries operating at village level are:
a) Big Cultivators;
b) Village Merchants; and
c) Itinerant Traders
(a) Big Cultivators
Big cultivators with large holdings and substantial marketable
surplus constitute the first type of market functionaries operating at
village level. They also own tractor, carts and other means of
transportation. Massive volume of marketable surplus at their disposal is
the result of both their own large-scale cultivation as also of the seasonal
purchases conducted at the village level. In fact, they create buffer stock
by purchasing grain in the season and selling it afterwards in nearby
‘Mandis’. Small cultivators sell their surplus grain either to them or
through them.
(b) Village MerchantsThey are known by different names in different parts of India such
as ‘Beopari’, ‘Baniya’, ‘Sahukar’, ‘Paikars’, ‘Farias’, etc. They constitute
one of the most important assembling agencies at village level. Although,
they operate in some cases with their own capital but in rest or the cases
they are financed by ‘Arhatias’ or ‘Arhatdars’ or large wholesale traders in
assembling and distributing centres.
Village Merchants’ job is to collect the marketable surplus from
villages and village markets and carry it to the wholesale mandis or
nearest towns. It is in this manner and through these agencies that the
marketable surplus is brought to the secondary and terminal market.
(c) Itinerant TradersThey are petty merchants who move between villages and purchase
the produce for cultivator. They either own some animal such as pony or
possess carts to transport the produce to the nearby market. They offer a
lower price than that ruling in the nearby market as they take into
consideration all factors such as transportation, market charges and
their profit margin. They generally pay the cultivators in 3-4 days after
the produce has been disposed of in the market and payment has been
received from ‘Arhatia’.
(2) Functionaries at mandi levelImportant functionaries at Mandi level are:
a) Arthatias;
b) Brokers; and
c) Co-operative Marketing Societies.
a) ArhatiasThe most Important functionary to be found in bid mandis are
‘Arhatias’ who include both buyers on commission and outright buyers.
Broadly speaking, the Arhatias can be grouped under two heads, viz.,
Kuchha Arhatias and Pucca Arhatias.
i) Kuchha Arhatias: They are small commission agents. Their
sphere of activity is purely local and they act mainly as
middlemen or an intermediary between the primary producer
or seller and the buyer in the large wholesale market. Such a
person seldom buys on his own account. His main business
is to establish contact between producer-seller and the buyer
in the assembling market. He also advances money to the
cultivators and village banias on the condition that the
produce will be disposed of through him alone and hence,
changes a very nominal rate of interest on the money
advanced.
ii) Pucca Arhatias: They are generally big firms of some
substance and they mostly deal in grains, oil-seeds, and
other agricultural products either as agents or act on their
own account. They also help in assembling of the farm
products by financing the operations of the ‘KuchhaArhatias’ and small traders.
b) Dalal (Brokers)Their main function is to bring buyers and sellers together. They
differ from the Arhatias in the sense that they have no fixed business of
their own. They charge commission from the buyers and the sellers.
c) Co-operative Marketing SocietiesThese have been established under the integrated Rural Credit and
Marketing Scheme initiated under the Second Five-year Plan. The main
function of these societies is to sell the produce of their members. They
also undertake outright purchases, provide storage facilities for storage
and grading, and thus save cultivators from exploitation by traders, and
help the farmers in securing a fair price for their produce.
can find a long chain of different functionaries. Let us discuss these
functionaries under two heads viz.
i) Functionaries at village level
ii) Functionaries at Mandi level
(1) Functionaries at village level
Some important functionaries operating at village level are:
a) Big Cultivators;
b) Village Merchants; and
c) Itinerant Traders
(a) Big Cultivators
Big cultivators with large holdings and substantial marketable
surplus constitute the first type of market functionaries operating at
village level. They also own tractor, carts and other means of
transportation. Massive volume of marketable surplus at their disposal is
the result of both their own large-scale cultivation as also of the seasonal
purchases conducted at the village level. In fact, they create buffer stock
by purchasing grain in the season and selling it afterwards in nearby
‘Mandis’. Small cultivators sell their surplus grain either to them or
through them.
(b) Village MerchantsThey are known by different names in different parts of India such
as ‘Beopari’, ‘Baniya’, ‘Sahukar’, ‘Paikars’, ‘Farias’, etc. They constitute
one of the most important assembling agencies at village level. Although,
they operate in some cases with their own capital but in rest or the cases
they are financed by ‘Arhatias’ or ‘Arhatdars’ or large wholesale traders in
assembling and distributing centres.
Village Merchants’ job is to collect the marketable surplus from
villages and village markets and carry it to the wholesale mandis or
nearest towns. It is in this manner and through these agencies that the
marketable surplus is brought to the secondary and terminal market.
(c) Itinerant TradersThey are petty merchants who move between villages and purchase
the produce for cultivator. They either own some animal such as pony or
possess carts to transport the produce to the nearby market. They offer a
lower price than that ruling in the nearby market as they take into
consideration all factors such as transportation, market charges and
their profit margin. They generally pay the cultivators in 3-4 days after
the produce has been disposed of in the market and payment has been
received from ‘Arhatia’.
(2) Functionaries at mandi levelImportant functionaries at Mandi level are:
a) Arthatias;
b) Brokers; and
c) Co-operative Marketing Societies.
a) ArhatiasThe most Important functionary to be found in bid mandis are
‘Arhatias’ who include both buyers on commission and outright buyers.
Broadly speaking, the Arhatias can be grouped under two heads, viz.,
Kuchha Arhatias and Pucca Arhatias.
i) Kuchha Arhatias: They are small commission agents. Their
sphere of activity is purely local and they act mainly as
middlemen or an intermediary between the primary producer
or seller and the buyer in the large wholesale market. Such a
person seldom buys on his own account. His main business
is to establish contact between producer-seller and the buyer
in the assembling market. He also advances money to the
cultivators and village banias on the condition that the
produce will be disposed of through him alone and hence,
changes a very nominal rate of interest on the money
advanced.
ii) Pucca Arhatias: They are generally big firms of some
substance and they mostly deal in grains, oil-seeds, and
other agricultural products either as agents or act on their
own account. They also help in assembling of the farm
products by financing the operations of the ‘KuchhaArhatias’ and small traders.
b) Dalal (Brokers)Their main function is to bring buyers and sellers together. They
differ from the Arhatias in the sense that they have no fixed business of
their own. They charge commission from the buyers and the sellers.
c) Co-operative Marketing SocietiesThese have been established under the integrated Rural Credit and
Marketing Scheme initiated under the Second Five-year Plan. The main
function of these societies is to sell the produce of their members. They
also undertake outright purchases, provide storage facilities for storage
and grading, and thus save cultivators from exploitation by traders, and
help the farmers in securing a fair price for their produce.
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