1.5. Methods of Sale and Marketing Agencies

The marketing of agricultural produce is generally transacted in one of the following ways.

♤ Under cover or the Hatta System: - Under this system, the sale is effected by twisting or clasping the fingers of the sellers agent under cover of a cloth. The cultivator is not taken into confidence until the final bid is cleared.

♤ Open auction syste: - Under this system the agent invites bids for the produce and to the highest bidder the produce is sold.

♤ Dara system:- Another related system is to keep the heaps of grains of different quantities and sell them at fiat rates without indulging in weightment etc.

♤ Moghum sale:- Under this system, sale is based on the verbal understanding between buyers and sellers and without mentioning the rate as it is understood that the buyers will pay the prevailing rate.

♤ Private agreement: - The seller may invite offers for his produce and may sell to one who might have offered the highest price for the produce.

♤ Government purchase: - The government agencies lay down fixed prices for different qualities of agriculture commodities. The sale is affected after a gradual processing for gradation and proper weightment. This practice is also followed in co-operative and regulated markets.

♤ Marketing agencies:- The various agencies engaged in the marketing of agricultural produce can be classified into two categories, viz., (i) government and quasi private agencies like the co-operative societies and (ii) private agencies. A chain of middlemen may be found operating both in Government and private agencies.