The methods of sale or fixation of rate prevalent in agricultural
markets may be as follows:
(1) Under Cover (Haththa) MethodIn this method, the buyer or his broker and commission agents join
hands under the cover of cloth usually a towel or a dhoti or front portion
of kurta or shirt. The price is settled by pressing the fingers. The
negotiations go on in this secret manner till they are called off due to
failure in arriving at as on agreed price, or a price is settled. The
commission agent then informs the seller and asks for his consent to sell.
He is, however, not told anything about the price offered by other buyers.
The under cover method of sale is advocated to be advantageous by the
middlemen group. This method has ample scope for malpractices against
the interests of sellers because of secret negotiations. Now-a-days,
traders are shifting from this method to private negotiations.
(2) Auction MethodUnder this method, the prospective buyers gather around separate
heaps of grains and announce their bids loudly. When the bids have
reached the highest, the auctioneer who is generally a commission agent,
in consultation with the seller, sells the produce to the highest bidder.
The auction system is definitely better than the undercover system as
this increases competition among the buyers and the rates are very likely
to rise if there is fairly strong demand for the product. Moreover the
chances of malpractice are also minimal.
(3) Private NegotiationsThis is the most common method of sale. Under this method,
individual buyers or their brokers visit the shops of commission agents,
inspect the quality of grains and offer rates as they think appropriate.
Both the parties then negotiate on the rates and if both agree on rates,
the deal is struck
markets may be as follows:
(1) Under Cover (Haththa) MethodIn this method, the buyer or his broker and commission agents join
hands under the cover of cloth usually a towel or a dhoti or front portion
of kurta or shirt. The price is settled by pressing the fingers. The
negotiations go on in this secret manner till they are called off due to
failure in arriving at as on agreed price, or a price is settled. The
commission agent then informs the seller and asks for his consent to sell.
He is, however, not told anything about the price offered by other buyers.
The under cover method of sale is advocated to be advantageous by the
middlemen group. This method has ample scope for malpractices against
the interests of sellers because of secret negotiations. Now-a-days,
traders are shifting from this method to private negotiations.
(2) Auction MethodUnder this method, the prospective buyers gather around separate
heaps of grains and announce their bids loudly. When the bids have
reached the highest, the auctioneer who is generally a commission agent,
in consultation with the seller, sells the produce to the highest bidder.
The auction system is definitely better than the undercover system as
this increases competition among the buyers and the rates are very likely
to rise if there is fairly strong demand for the product. Moreover the
chances of malpractice are also minimal.
(3) Private NegotiationsThis is the most common method of sale. Under this method,
individual buyers or their brokers visit the shops of commission agents,
inspect the quality of grains and offer rates as they think appropriate.
Both the parties then negotiate on the rates and if both agree on rates,
the deal is struck
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