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On the basis of location we may classify agricultural markets into:
I. Local market/village market
II. Primary markets
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III. Secondary market
IV. Terminal markets.
I. Local Markets:
This market is confined to a particular village, where producers and intermediaries or consumers meet for the purchase and sale of farm products. The products produced in that village are brought for sale in these markets.
The local market is also known as growers’ market and is available in the vicinity of rural areas. They are generally located in small towns and at their convenient places, where rural producers bring their produce and sell to the buyers.
Functions of Local Markets:
1. Assembling of Products – The primary function of local market is to assemble the farm produce at a single place.
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2. Availability of convenient place – As the producers and buyers meet at a nearby place, this type of market act as a convenient place for producers as well as buyers. This helps the producers and relieves them from the headaches of transportation and save other costs of carrying it to the towns.
3. Immediate Cash Payment – In these types of markets the village producers get immediate payment after the sale of their produce.
II. Primary Markets:
Primary markets are periodical markets locally called as “Shandies or Haats”. They are generally held once a week on a particular day. They are generally held in the open place or in roadside groves in centrally situated areas. Generally these markets are situated in the producing areas, commodities produced in the nearby surrounding areas are brought here and sold in these markets.
The agricultural produce is purchased by intermediaries, which later they sell it into wholesale markets. Besides agricultural produce, a number of other articles required by rural folks such as locally made agricultural inputs such as threshers, hannovers, winnovers are available and consumables such as pulses, salt, jaggery, oil, fruits and vegetables, spices, cloth, hosiery products and ornaments of cheap metal are also sold in these markets.
Functions of Primary Markets:
The main function of these markets is to serve as assembling centres for the local produce, but they also function as distributive centres for local consumption.