Historically, sales of agricultural goods in India have occurred under a tight regulatory scheme. These regulations were set up to reduce the risk of exploitation of farmers by local middlemen who could otherwise o􀃠er unreasonable prices and use other coercive
techniques to instigate sales. Generally farmers were required to sell their produce at mandis that were regulated under state marketing boards, which meant they were selling only to people who had a license to buy inside those mandis. Over time, many of
these mandis have come to be dominated by licensed traders who procure agricultural goods from farmers and sell them to retailers locally and around the country.

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