In order to ensure that the farmers get fair and stale returns on their production, marketing boards in general carry out several functions. They resist competitive production of the product to stabilize prices or to prevent great falls in prices. To do this, they may fix the price of the product or restrict the supply allowed in the market. The total amount produced is greater than the amount supplied into the market by the amount that the board holds back in its own warehouses or diverts to the other markets. For example: overseas market. They may also establish a system of grading the produce and set standards of quality control. They also attempt to improve the quality of the product through research and introduce economical methods of production.

Although the organization of the Marketing Board may differ in detail from board to board and form place to place, it normally consists of some of the principal features. The board is empowered by an Act of Parliament to control either the production or distribution, or both, of named product. The Act also specifies the total number of members on the Board, how they should be appointed and the powers they possess. Normally, they will consist of the leading members of the producers’ organizations in the country.

They also consist of one or two nominees of the government, usually from the Department of Agriculture. On the other hand, they normally consist of some representatives from the Consumers’ Advisory Council who have no power except to report to the Board. Representation on the Board is given to producers, government officials as well as representatives of consumer bodies because the decisions of the Board to set a minimum price or to restrict the production of a staple crop will certainly affect the cost of living of the people. So, in order to alleviate the burden on the producers as well as the consumers, the government may have to give subsidies to the farmers instead.

On the other hand, there are some operations of the Marketing Boards. The Board, empowered by the Act of Parliament, will keep a register of all producers of that particular product in the country. All the produce has to be sold to, or through, the Board, except that which is used by the producer for his consumption. It may allocate to each producer a quota if it wants to restrict competitive production and supply.

Source by Julie Staz