Every country follows an

economic system to
distribute its resources
and decide how to
produce the goods and
services that its citizens
want. Most countries use a
market economy. In a
market economy, people
decide what to produce
and sell, and they make
other economic decisions
based on own self-interest,
guided by the forces of
supply and demand. Have
WHAT IS A MARKET ?
agreed prices

You know that market is the

major source of distribution
of goods and services. Do
you think market is only a
place where goods are
bought and sold? The fact is
that a 'market' does not just
refer to a specific place, it is
also a mechanism through
which buyers and sellers
come together to buy and
There are three primary
participants in the market:-
Regulators or
Producers Consumers Government
Agencies:
These can be individuals or These are individuals who The government plays a key
companies who create and purchase goods and services. role in ensuring that the
offer goods and services for They decide what market operates in a fair
sale. They make products to buy based on their needs, manner. It makes and
that people want to buy or wants and budget. The implements laws and
demand and compete with choices they make influence regulations to protect
each other to attract which products succeed in consumers and ensure that
customers the market businesses follow fair
practices.
 FUNCTIONS OF MARKET
• Exchange of Goods and Services
Local residents visit the market as
buyers or consumers to purchase
items they need or want. Producers
create or manufacture goods and
services needed by the consumers.
They are responsible for the actual
production process, from obtaining
raw materials to manufacturing the
final product. Producers can be
manufacturers, farmers, craftspeople
and others involved in the creation of
Markets help set Markets encourage
prices for goods and competition among Markets contribute to
services. Prices are producers. This the economic activity Markets help people
determined by how competition, in turn, of the community by get what they need
much people are leads to innovation as providing opportunities (such as food) and
willing to pay businesses strive to for businesses to thrive what they want (such
(demand) and how improve their products and generate income. as toys).
much is available and services to attract
(supply) customers and
increase sales.

Meeting
Determinations Competition and Generate Needs
Of price Innovation Income and
Wants
 Local markets often
Markets provide a Local markets serve as By buying from local showcase the cultural
wide range of choices a hub where people markets, residents diversity of the
for buyers, allowing come together and support businesses community, offering
them to choose from share their within their community. traditional or unique
different products and experiences, fostering helping them grow and products that reflect
services. a sense of community sustain themselves. local customs and
practices

Supporting
Choices and Connect Local Culture
Vareity People Business Exchange
HOW THE PRODUCT REACHES
THE FINAL BUYER ?
The retail market is the last
link in the distribution chain
that starts when the retailer
buys goods from the
wholesaler and ends when the
retailer sells it directly to the
customers for their personal,
non- commercial use.
Wholesalers buy goods in bulk
from manufacturers or their
agents and then sell them to
retailers and industrial users.
People who are engaged in
wholesale trade are known as
wholesalers. They do not sell
products directly to
 HAAT, BAZAR AND MANDI
Do you go to the same market to buy all
you need in your day-to-day life? For
example, do you buy grocery and
vegetables from the same market from
where you buy your clothes or electronic
items for the house? In fact, there are
different kinds of markets that people visit
for their everyday needs, such as the
hawker stalls in their neighbourhood, local
weekly vegetable markets, large shopping
complexes and malls. Some of these local
markets are also called haat, bazaar or
mandi. A haat, bazaar or mandi is a
marketplace where people come together
to buy and sell goods and services.
 MANDI
• A 'mandi" refers to a marketplace, usually a
wholesale market where agricultural products
are bought and sold. These markets play a
crucial role in the country's agricultural
economy .

• A mandi is, therefore, primarily an agricultural

marketplace. These are the designated spaces
where farmers and buyers meet and engage in
buying and selling agricultural products.
Farmers prefer to sell their perishable
commodities in nearby mandis as they can save
transportation costs and sell their produce while
they are fresh. India is still a rural economy and
such mandis help a large number of farmers to
• After harvesting the crops, their
storage and the prices they fetch
become critical. At times farmers have
to wait to earn a better price for the
harvested crop.

• Agriculturalists are in favour of selling

their produce in a mandi, i.e.., a large
market in a nearby town or city, where
they can earn a higher profit on their
produce. A mandi ensures that the
prices are regulated so that the
farmers can earn reasonable profits
and are not cheated. The reliance on
intermediaries, such as dalals, is
discouraged as they often demand
Mandis are
important as they:
 provide a regulated
market space to farmers.

 provide agricultural
marketing infrastructure.

 offer a great platform to

farmers to meet
prospective buyers.
 There are different wholesale mandis, for instance,
there are gur mandis (markets for sugar and related
goods) and anaj (food grains) mandis in many Indian
towns. Inside a mandi, retailers can easily approach
particular merchants as they are located in one place.

 The mandis or wholesale markets are characterised

by a large number of sellers and a small number of
buyers. Hence, high price luctuations are also
witnessed. However, the existence and functioning of
markets that are regulated by the government keep
such fluctuations in control. Such markets ensure that
farmers carn a fair price for their produce by following
proper method of sale, correct weight and measures
and prompt payment. Sourid market practices and
transparency in all transactions also help in
moderating price fluctuations.
 OTHER LOCAL MARKETS
A local market is a place or a
system where people buy and
sell goods and services within a
specific community or
geographic area, such as a
neighbourhood, town or small
city. These markets are often
called bazaars or haats. They
offer a variety of products and
services, often reflecting the
needs and preferences of the
local community
 Weekly Markets
 These markets are held on a
specific day of the week .

 Vegetables, clothes and

similar articles of daily use
are sold in these markets at
relatively lower prices.

 They attract mobile traders

and venders who set up
their shops during the day
Mobile Traders or
Vendors
 The retailers do not sell their goods from.
a fixed place and conduct their business
by moving from one place to another
according to the sale prospects and their
convenience.

 Vendors such as hawkers and street

sellers fall in this category .

 They carry a small stock of products and

sell the same to the consumers at their
doorsteps or at busy places frequented by
 BAZAARS
There are many
general stores in Located in the
Such retailers
local bazaars, markets or
operate through
which deal in a residential areas,
fixed shops or
variety of general they also provide
stores located in
consumer goods goods on credit by
markets or in
such as groceries maintaining a
residential areas.
and stationery record
articles.
 have a shopping
mall, which is a
large retail
There can be complex
They may also speciality stores comprising a
provide free which deal with number of shops
the sale of a which sell different
home delivery particular kind of types of products,
service to their product, for which cater to the
customers instance, chemists needs of people.
selling medicines. They also have
entertainment
facilities for all age
groups, excellent
 HAATS
 Weekly markets, known as haats, are
also organized in many villages where
farmers sell their produce.
Intermediaries often help the farmers
by selling their produce to wholesalers
known as arhatiyas who sell the same
to the retailers or to processing units.

 Nowadays, people utilise the

convenience of online shopping
provided by the Internet to buy and sell
their goods. Customers can browse
online platforms and place their orders
to the concerned store. The mode of
payment typically involves the use of
credit or debit cards, many online
BY-
UTKARSH