India being a primary producing country, agriculture plays a vital role, both as an essential infrastructure and a development component in generating and sustaining a higher national income. Out of a natonal income of about Rs 38,921 crores in 1972-73 as much as Rs 17,500 crores or about 44.9% is contributed by agriculture and allied sectors. It is estimated that about 50% of the agricultural produce is available as marketable surplus. The marketing system in India provides sustenance for abour 3 million persons who are engaged in performing various marketing function . In the field of exports too, the agricultural sector accounts for about 50% of the total value.
The process involved in the disposal of such a substantial produce of great economic importance are significant not only for the farmer but also for the country as a whole. The unreasonably low return that the farmer gets for his produce and the excessive margin of profit retained by the intermediaries attracted the Govt's attention and it was felt that the economic condition of the agriculturists could not be improved unless determined steps were taken to establish an orderly system of marketing in the country.
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