Policy reforms and performance of regulated markets in Karnataka
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Date
2007
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UAS Dharwad
Abstract
In agricultural sector reforms, agricultural marketing needs an urgent attention, which
acts as a catalyst for agriculture sector growth in the country. There are many policy reforms
undertaken in regulated markets of Karnataka from time to timeIn spite of all policies
perceived in regulated markets were not resulted in expected outcomes in the marketing
system of agricultural commodities. Hence the present study is mainly concerned with the
policy reforms and performance of regulated markets in Karnataka in general and north
Karnataka in particular. Number of traders and other market functionaries were not increased
in accordance with the increase in arrivals, therefore, the absorption of trade was mainly in
the hands of few traders and market functionaries. The liberalization of markets may lead to
better competition and increase in number of traders and other functionaries which may result
in equalization of trade among the traders and increase in producers share in consumer rupee.
The amount lent to beneficiaries under pledge loan scheme as percentage of total turnovers of
regulated markets in Karnataka was negligible throughout the study period. Market wise
performance indicates farmers utilizing this scheme were insignificant in selected markets.
Hence, efforts should be made to popularize and allocate more funds under this scheme.
Impact of policy change with respect to market cess was significantly influenced the arrivals
and prices in general, but it was positive on jowar and negative on cotton and groundnut
trade. In the market intervention policy it was found that maize was the major commodity
purchased under revolving fund scheme. Improvement of market information system in
regulated markets resulted in operation of markets independently without much integration
among themselves. As revealed by the cluster analysis, payment for the produce, accuracy of
market information, weighing charges, deceit in prices needs to be standardized for better
market performance.