Agricultural market in India is highly fragmented. With each farmer confined to a single mandi in many products inmany states, India currently has thousands of markets across which no arbitrage takes place.
The production, supply and distribution of certain commodities comes under the purview of the Essential Commodities Act, 1955.
These commodities include food grains, oilseeds, cotton and woollen textiles, jute, and coal, among others.
Under the Act, the central government may control the price at which any essential commodity is traded. It may also regulate licenses for its storage, transport, distribution, disposal or consumption. Agricultural markets in the country are regulated by ....
