Price discovery mechanism in unified market platform (UMP): A case study of APMC, Raichur

Agricultural marketing plays a crucial role in economic development. An efficient marketing system is one which minimizes the costs and maximizes the producers share in consumer’s rupee. Agricultural markets in India are characterized by poor competitiveness and poor price discovery. In order to provide better price to the farmer transparent price discovery mechanism is the need of the hour. The present paper attempts to analyze how price will be discovered in e-tendering at trader level. Unveiled the Factors influencing the price like no. of bids per lot, lot size and quality parameters through Regression analysis. It indicated that numbers of bids per lot and lot size have positive effect; moisture content has negative effect on prices.