Question

State the demerits of unregulated market

Answer 1

Defects of unregulated markets:

• The condition in the mandis are very poor. The method of transaction is generally against the interest of the farmer.
• The number of intermediaries between the farmer and the consumer are too many and the margin/profit going to them is huge.
• Farmers do not get the information of the ruling price. As a result they have to accept whatever price is given to them by the traders.