The condition of the farmer in India, an agricultural country, is very bad. Despite getting all the concessions from the government, the farmers here suffer loss. Sometimes due to less rain and sometimes due to excess rain, the crop gets ruined. If everything goes well and there is a bountiful yield in the fields, then a good rate is not available in the market. Often such news keep coming that sometimes farmers threw tomatoes on the roads and sometimes farmers ran tractors on the standing crops. The only reason for all is that they do not get the right price. In such a situation, it is important for you to understand how the vegetable market works.
Agents like stock market brokers are also there in vegetable market
On hearing the news of throwing vegetables on the roads, if you wonder why farmers do not sell their crops after knowing the rate from the first market, then it is possible that you have not been to the vegetable market. Even if you have gone, you have hardly seen how the crops of the farmers are sold there. As soon as they reach the market, the farmers first meet many agents, who work to sell their vegetables. These agents are just like stock market brokers, with the help of which shares are bought or sold. Vegetables cannot be sold without these agents, with their help the vegetables are auctioned.
How does the bidding take place, it fluctuates like the stock market
If the demand for a share increases more in the stock market, then its price also starts running up rapidly. In the same way, in the vegetable market, the prices increase when the demand increases and fall when it decreases. In the vegetable market, the agent fixes a price and starts bidding on it. If the demand is high then the bid goes on increasing continuously, but if the demand is low then the bid falls rapidly. The goods are sold at the price at which the customer is found. This is the reason that the rate of any vegetable or fruit in the market cannot be ascertained in advance.
Insider trading is like this in the stock market
First of all it is important to understand what is insider trading. When some people buy and sell shares in connivance with each other and wrongly increase or decrease its price, it is called insider trading. This also happens in the vegetable market, in which agents and traders together or sometimes traders together do insider trading. All together try to sell the goods of the farmer at a low bid and later earn a huge profit on it. Many traders offer some price of his crop to the farmer even before bidding.
It takes many charges, understand with an example
Let us assume that a farmer takes 1 ton of tomatoes and goes to the vegetable market to sell them. There the agents get bids for his goods and help in selling them. Suppose the bidding starts at Rs.10 per kg i.e. Rs.10,000 per ton. If the demand for tomatoes is high, then the bid will increase, otherwise the bid will start falling. Let us assume that tomatoes are sold at Rs 10,000 per ton. Now the trader who has bought it will take it to the big mandis of Delhi-Ghaziabad and sell it and earn profit. Whereas the farmer’s crop was definitely sold for Rs 10,000, but he will not get Rs 10,000. First of all, the farmer has to pay the mandi tax, after that the agent’s commission, if there is a need to load and unload the goods, then the farmer will get the money that is left after cutting all these. Similarly, transaction tax, brokerage charges etc. are levied in the stock market, many similar charges are levied in the vegetable market as well.
Source: yourstory.com
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