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    PakAgriFarming is commited to high standards in extension of agriculture in Pakistan through simple and factual information and topics related to the hottest issues in Pakistan Agriculture.

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Friday, January 11, 2013

Classification of Markets and Market Functionaries in Pakistan

Posted by Shakil Shaukat On Friday, January 11, 2013

Agriculture marketing is an old science of business. In the history of its evolution in Pakistan, there has been some improvement brought about by evolution of communication and better crop yields through efforts of our agriculture scientist. As far as the markets are concerned, agriculture markets can be divided into 3 main categories;
1. Primary Markets
2. Secondary Markets
3. Terminal Markets
A rice mill

1. Primary Markets

These are periodical markets locally known as ‘Haats’. They are generally held once or twice a week. The days on which these markets meet are fixed so that traders can visit the area. They are generally held in the open and along roadsides in important or centrally situated localities.
These markets usually serve an area of 10 km radius but it maybe more, ranging from 10 to 50 km, depending upon the availability of communication and transportation facilities.

2. Secondary Markets

These markets, also known as ‘Mandi’, are regular wholesale markets and provide a permanent place for daily transactions.
The work starts in them early morning and continues till all transactions are over. These markets are generally situated in the towns, districts, and important trade centers.
Usually they are situated near railway stations. Shops or ‘Arhats’ are built in these markets. Postal, Banking and telephone facilities are available at such places.

3. Terminal Markets

A terminal market is the place where the produce is either finally disposed of to the consumer or to the processor or assembled for exports. In these markets, merchants ere well organised and use modern marketing methods.

Market Functionaries

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.,

Functionaries at Village Level

Some important functionaries operating at village level are:
a) Big Cultivators
b) Village Merchants
c) Itinerant Traders

Functionaries at Mandi Level

Important functionaries at Mandi level are:
a) Arthati
b) Brokers
c) Co-operative Marketing Societies