Role of infrastructure in development of agricultural marketing in Punjab

The present paper attempts to study the growth of market arrivals of wheat and paddy in the regulated markets of Punjab in relation to the increasing production potential of the state. An effort has also been made to examine the role of Punjab Mandi Board in creation of market infrastructure in Punjab and its likely effect on market arrivals. The results reveal that the production as well as procurement of both wheat and paddy have increased during the period 1980–2012 which may be attributed to the assured price under minimum support price programme and market development infrastructure facilities in the State. The correlates of paddy and wheat procurement with some of the production parameters and infrastructural facilities existing in the State clearly exhibit that these affect the volume of business directly or indirectly in the regulated markets. The Punjab Mandi Board has been established to guide supervise and control the market committees of the state for better and efficient marketing of farm produce. The Board not only creates market infrastructure but also provides financial assistance to the economically weak market committees of the state from Market Development Fund. Apart from construction of link roads and development of mandis, other supporting services such as grading of foods/vegetables, post harvesting scheme, grant to market committees, etc. also form part of the efforts made by Punjab Mandi Board for the development of market infrastructure in the State.