Which statement is true about regulated markets in India?

AAll states have APMC acts except Kerala, J&K, and Manipur

BPrice discovery is never regulated

COnly the central government manages regulated markets

DThere is no role for Market Committees

Answer:

Distress Sale:

Distress sale means the sale of agricultural produce immediately after the time of the harvest in an unfavourable price. This sale takes place when producer is in debt.

Sale in the Mandi

Mandi is the market place which are located far from 5 to 20 km from the village.

Regulated Markets:

Regulated Markets Recommended by Royal Commission on Agriculture 1928 and started in 1929
Royal Commission on Agriculture Headed by H. Calvert
The present marketing System in India is nothing less than theft - H. Calvert
According to royal commission 'If Co-operation fail it will fail the best hope of Rural India.’
Regulated Markets are administered by Market Committee
Royal Commission on agriculture recommended need for group marketing instead of Individual marketing present marketing.
Regulated Markets are 2 (Tirur and Ponnani)

Commission Agency System:

Majority of Marketing Societies are functioning as Commission agents
Under this system the cultivators bring their produce at the Mandi or Marketing Society and the Marketing Society collect the produce as agents and store in its godown until the price become favourable.
In this system, for acting as an agent, a small amount is levied by the Society as commission.

Outright Purchase System:

In this system, the Society purchases agricultural produce from the members by offering ruling market prices. The payment is made in the spot.
This system is followed by the Co-operative marketing societies with the objective of helping the farmers with limited market surplus.
In outright purchase system payment is made at the time of - Purchase
It is a blessing to the farmers they get full as well as better price at the time of sale its self. But the marketing Societies have to take the risk due to price fluctuation.

Price Fluctuation Fund:

This fund is created out of profit by the Marketing Societies to cover the risk involved in the outright purchase system adopted by them.
This fund is intended to meet the unforeseen losses of the Society due to fluctuations of prices in the Market.
For creating this fund, the Marketing Societies has to create 10% of its Net profit towards price fluctuation Fund.
The Govt and the State Cooperative Marketing Federation should have to make contribute 2% of the value of goods purchased on outright purchase basis to the Marketing Society towards this fund

Trade Credit:

Trade Credit is the credit facility allowed by the Marketing Society to the Wholesale buyer of the marketing Society for a period of 10 to 15 days for purchasing the produces.
If the whole sale buyer fails to pay that amount with in that time, he will be enrolled as a nominal member.
AIRCSC says that the Trade Credit facility is often abused by the wholesalers and it increases the overdue level of the Marketing Society

Pledge Advance:

Pledge advance also known as Pledge loan
Pledge advance is given to strengthen the holding power and to prevent distress sale of the cultivators
Pledge Loan is issued by marketing society on the security of agricultural loan.
Under this scheme the marketing Society gives advance generally 60 to 75% of the value of agricultural produce pledged if the market price is not favourable to him.

Pooling:

Pooling is the process by which the agricultural produce is physically assembled together and sold as a single unit rather than separate lots by separate owners.
It also include the pooling of expenditure and equalization of prices.

Linking of Credit with Marketing:

Linking Credit with Marketing recommended by AIRCSC
Kettuthengu Deposit scheme is an example of Linking Credit with Marketing
Linking Credit with Marketing is an example of Co-operation among Co- operatives.
Linking Credit with Marketing is introduced for reduction of over dues in Co-operatives.

Objectives:

Challenger App