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B.A. LL.B. (Five Years) Sem 5 Agricultural Marketing Law Oct 2025 Question Paper with Solutions

SPPU Solved Question Papers

Agricultural Marketing Law

Previous Year Question Paper with Solution

B.A. LL.B. (Five Years) · Sem 5

Oct 2025 Examination

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Mumbai

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First published on munotes.in on 6 November 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

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The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.

The question paper reproduced here is the paper as set by Savitribai Phule Pune University at the Oct 2025 examination.

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Contents

The questions below are the paper as Savitribai Phule Pune University set it at the Oct 2025 examination, in the order it was set.

MarksPage

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MarksPage

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The Paper as Set

The questions in this volume are the questions asked at the Oct 2025 examination, reproduced as Savitribai Phule Pune University set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.

Duration 3 hours  ·  Total marks 70  ·  13 questions answered

How to use this volume

Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.

Read the original question paper

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SECTION I

PART A

Answer any TWO · 30 Marks

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Q1)Discuss the Concept of Agricultural Marketing and Market.[15]

Answer

For full marks, cover: the meaning of a market (economic and legal); the meaning of agricultural marketing and its functions; the methods of agricultural marketing in India; its defects; the classification of markets; the regulated market under the Maharashtra Act; the government measures (regulated markets, the Model Act 2003, support prices, storage, grading, farmer producer organisations, e-NAM); Jan Mohammad; and a conclusion.

1. The concept of a market

In economics. A market is a place, or a system, where buyers and sellers of a commodity come into contact and settle a price. A fixed place is not essential. What matters are three things: a commodity, buyers and sellers in contact, and a price. Today buyers and sellers may meet by telephone or on an electronic platform.

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In law. Under the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act 1963, a "market" has a legal meaning. The State Government declares a market area for notified produce. It then establishes a principal market and subsidiary markets, with market yards, run by a Market Committee. Within that area, trade in notified produce is regulated by the Act.

2. The concept of agricultural marketing

Meaning. Agricultural marketing covers every step by which farm produce moves from the farm to the consumer. Good marketing gets the farmer a fair price and the consumer a fair price, with little lost on the way. Without it, higher output does not mean higher income.

Functions.

  1. Assembling the produce from many small farms.
  2. Grading it by quality, so that better produce gets a better price.
  3. Storing it, so that it can be sold when prices are fair.
  4. Transporting it to markets and consumers.
  5. Processing it where needed, as in milling grain or packing fruit.
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  1. Selling it, through auction, private sale or contract.
  2. Financing and risk-bearing along the way, and supplying market information.

3. Methods of agricultural marketing in India

MethodHow it works
Sale in the villageTo a moneylender, landlord or trader at the farm gate
Local and periodic marketsSmall quantities in weekly markets
Regulated market (mandi)Auction in the market yard through licensed traders, under the Market Committee
Sale to the GovernmentProcurement at the minimum support price
Collective saleFarmer producer organisations pool and sell together
Contract farmingA buyer agrees in advance to buy the crop
Electronic tradinge-NAM and licensed electronic platforms

4. Defects of agricultural marketing

  1. Distress sale. A farmer who needs cash, or owes money, sells soon after harvest, when prices are lowest.
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  1. Too many middlemen. Each takes a margin, so the farmer gets a small share of the consumer's price.
  2. High costs and losses in handling and transport.
  3. Inadequate storage, so the farmer cannot wait for a better price.
  4. No grading, so better quality is not rewarded.
  5. Poor market information about prices in other markets.
  6. Malpractices and cartels, such as false weights and price fixing by traders.
  7. Barriers between States under separate State laws.

5. Classification of markets

Markets are classified on several bases.

  1. By location. Village markets; primary markets in towns near production centres; and secondary wholesale markets near district headquarters, where village traders deal with wholesalers. Then come terminal markets, where produce is finally sold to consumers or assembled for export, and seaboard markets at ports.
  2. By area covered. Local or village markets, regional markets, national markets and international markets.
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  1. By time span. Short period markets are held for a day or a few hours. Periodic markets meet on fixed days, like weekly bazaars. Long period markets deal in storable goods like foodgrains, and secular markets are permanent.
  2. By volume of transactions. Wholesale markets, for bulk quantities; and retail markets, where consumers buy for their own needs.
  3. By nature of transaction. Spot or cash markets, with immediate exchange; and forward markets, where delivery is on a future date.
  4. By number of commodities. General markets for many commodities; and specialised markets, such as a cotton or vegetable market.
  5. By degree of competition. Perfect markets, with many buyers and sellers and full information; and imperfect markets: monopoly, duopoly, oligopoly and monopolistic competition.
  6. By nature of commodities. Commodity markets for goods; and capital markets for shares and securities.
  7. By stage of marketing. Producing markets, which assemble produce; and consuming markets, which distribute it in cities.
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  1. By public intervention. Regulated markets, run under statutory rules; and unregulated markets, run by traders' own rules.
  2. By population served. Urban and rural markets.
  3. By functionaries. Farmers' markets, co-operative markets and general markets.

Regulated and unregulated markets compared. In a regulated market, business is done under rules framed by a statutory market body. Marketing costs are standardised and practices are controlled. In an unregulated market, traders frame their own rules. Such markets suffer from unstandardised charges and imperfect price formation. This is why the law favours regulated markets.

6. Marketing channels under the Maharashtra Act

The Maharashtra Agricultural Produce Marketing (Development and Regulation) Act 1963 recognises several channels.

  1. Regulated market marketing. Notified produce in a market area is sold in the market yard under the Market Committee. There are licensed traders, open auction, correct weighment and prompt payment (s.29).
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  1. Collection centres (s.30A). The Market Committee, if authorised, may open centres where notified produce must be tendered for sale.
  2. Direct marketing (ss.2(ea), 5D(1)). A licence holder buys produce "directly from the agriculturists". This may be for processing, export, trade in produce of a particular specification, or value addition.
  3. Private markets (ss.2(ma), 5D(1)). A licence holder may establish a market of his own.
  4. Farmer-consumer markets (ss.2(f1), 5D(2)). Farmers sell directly to consumers. No market fee is leviable on sales in such markets.
  5. Contract farming (s.5E). A sponsor agrees in advance to buy a farmer's produce. The agreement is recorded, and the farmer's land can never pass to the sponsor.
  6. Electronic trading (ss.5F to 5J). Licensed electronic platforms for trade in agricultural produce, inter-operable with each other.
  7. National Integrated Produce Market (s.5A). A market for fruits and vegetables for Mumbai and its surroundings. It is run as an autonomous entity by the National Dairy Development Board or another notified body.
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  1. Market of National Importance (s.5-1A). A large market receiving produce from at least two other States may be designated for special regulation.
  2. Co-operative marketing. Co-operative societies market their members' produce, and take part in market committees.

7. Government measures

  1. Regulated markets. After the Royal Commission on Agriculture (1928) and a Model Bill (1938), most States enacted market regulation Acts in the 1960s and 1970s. Maharashtra's Act of 1963 is one. Licensed traders, open auction, correct weighment and prompt payment protect the farmer.
  2. The Model APMC Act 2003. It proposed private markets, direct marketing, contract farming and a single market fee. Maharashtra adopted many of these ideas.
  3. Minimum support prices and government procurement give the farmer a floor price.
  4. Storage and warehousing, through warehousing corporations and cold storage.
  5. Grading and standards through AGMARK.
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  1. Farmer producer organisations, which bargain collectively and cut out middlemen.
  2. e-NAM, the electronic national market launched on 14 April 2016, which lets buyers anywhere bid for produce in a mandi.

8. The courts

Jan Mohammad Noor Mohammad Begban v. State of Gujarat, AIR 1966 SC 385, decided 18 August 1965. A trader challenged the market Act's controls in Ahmedabad. The Supreme Court upheld regulation of wholesale trade as reasonable, to protect agriculturists from middlemen. It also found that "the Act read together with the rules does not purport to place any restriction upon retail transactions in agricultural produce." So no licence was needed for retail trade. The line between wholesale and retail markets decides what the law controls.

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Conclusion

Conclusion. A market is a system in which buyers and sellers of a commodity meet and settle a price. In law, it is a market area with a principal market and market yards under a Market Committee. Agricultural marketing covers assembling, grading, storing, transporting, processing and selling farm produce. In India it has suffered from distress sales, middlemen, poor storage and grading, poor information and malpractice. Markets are classified by location, area, time, volume, transaction, competition and public intervention. The State's answer has been regulated markets, the Model Act, support prices, storage, grading, farmer producer organisations and e-NAM. As Jan Mohammad shows, the law regulates wholesale trade to protect agriculturists from middlemen.

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