Test: A Wholesale Market - Class 7 MCQ

NGOs and private initiatives play a crucial role in supporting farmers by raising awareness about fair trade practices and providing resources that empower farmers. These organizations help farmers to navigate market challenges and secure better prices for their produce.

The primary goal of cooperative marketing is to reduce exploitation by wholesalers and intermediaries. By banding together, farmers can negotiate better prices and share resources, thus enhancing their market power and profits.

Moving the wholesale market to a location farther from the retail market could potentially lead to better facility development. However, this move must be balanced against the increased transportation costs and access challenges for traders and retailers, which can impact overall business dynamics.

The growth of supermarkets has led to a significant reduction in the role of wholesalers by promoting direct marketing. Supermarkets often buy directly from producers or wholesalers, thereby bypassing traditional wholesale channels and altering the market dynamics.

Intermediaries can distort market prices by offering low rates to farmers, which often results in reduced profits for the farmers. This dynamic can create an imbalance in the market, leading to exploitation and unfair trading practices.

The Gramin Bhandaran Yojna aims to provide scientific storage facilities to farmers, helping to prevent crop spoilage. This initiative is vital for ensuring that farmers can store their produce safely until they can sell it at a favorable price.

The Agricultural Marketing Information Network provides farmers with price information in regional languages, which helps them make informed decisions about when and where to sell their products. This empowerment is crucial for achieving fair prices and reducing exploitation.

Khari Baoli is known as Asia's largest wholesale market for spices, operating since the 17th century. It is located in Old Delhi and attracts customers from various regions, making it a historic and significant marketplace for spices and herbs.

Wholesale markets primarily function to supply goods in bulk to retailers. This allows retailers to purchase products at lower prices, which they can then resell for a profit. Wholesalers generally do not market their goods to end consumers, focusing instead on serving retail businesses.

Direct marketing is significant for farmers because it connects them directly with consumers and retailers, allowing them to sell their products without intermediaries. This can lead to higher profits and better market terms for farmers, as they have direct access to buyers.

In wholesale markets, prices are commonly determined through negotiations or auctions. This dynamic allows for price adjustments based on market conditions and the relationships between buyers and sellers, making it a flexible pricing mechanism.

Subsistence farmers typically face challenges that compel them to sell quickly, such as limited resources and the perishability of their crops. They often lack the storage capacity to hold onto their goods, which can force them to accept lower prices to make immediate sales.

Forming cooperatives allows farmers to negotiate better prices as a unified group. This collective bargaining power helps them counteract exploitation and achieve fairer compensation for their products.

Farmers frequently face the challenge of having to sell their crops quickly due to perishability. This urgency can lead to lower prices as they may have to accept offers from intermediaries who exploit their situation, often resulting in reduced earnings for the farmers.

In the agricultural supply chain, wholesalers and intermediaries typically earn the most profit, while farmers usually receive the least. This disparity is often due to the bargaining power and market access that intermediaries possess compared to individual farmers.

E-Choupal aids farmers by connecting them with buyers and providing crucial market information, such as weather updates and price trends. This platform empowers farmers to negotiate better deals directly, reducing their dependence on intermediaries.

Brokers, known as dalals, facilitate negotiations between farmers and wholesalers, charging fees for their services. This role is critical in the wholesale market as it helps farmers access larger markets, although it can also reduce their profits if not managed carefully.

The selling price set by traders is a significant factor affecting the profit margins of wholesalers. Lower selling prices typically lead to higher sales and better profits, while higher prices can reduce sales volume, thus impacting overall profitability.

Farmers often prefer selling directly to wholesalers to avoid paying broker fees. By cutting out the middleman, they can retain a larger portion of the profits from their sales, thereby increasing their overall earnings.

If consumers learn about and engage in purchasing directly from wholesalers, it could undermine the trust that retailers have in these wholesalers. Retailers rely on wholesalers for competitive pricing, and direct consumer access may disrupt this relationship, affecting wholesalers’ business dynamics.