Why is state intervention necessary to regulate the activities of private traders in the rural agricultural sector?

Question

Accepted Answer

Prior to independence, farmers were exploited by private traders in many ways.

1. While selling their produce to traders, farmers suffered from faulty weighing and manipulation of accounts.

2. Farmers who did not have the required information about prevailing prices were often forced to sell at low prices.

3. Lack of storage facilities did not allow farmers to keep back their produce to fetch a better price in the future.

4. Thus, state intervention became necessary to protect the small and marginal farmers from such exploitation.