The recent debate on the acceptability of foreign direct investment in the retail sector in India has been mostly political. It is necessary to look into the pros and cons of FDI in retail from a purely economic point of view. This article identifi es the safeguards that should be undertaken before allowing giant multinationals to function in the country.

Madhya Pradesh has emerged as one of the leading wheat procurement states in the country in the last five years, reflecting remarkable changes in the regional distribution and dynamics of the country's grain procurement landscape. Drawing on ethnographic fieldwork conducted in Harda Mandi, this paper describes the new systems and processes that have been implemented in the market yard and examines their effects on the mandi and key participants - farmers, traders, labourers, functionaries, and multiple state agencies.

Modifications to the Agriculture Produce Market Committee Acts have removed barriers to private participation and allowed trade outside regulated markets in the hope that it will help farmers and improve market infrastructure. But a key feature of regulated markets - the use of auctions to sell produce - has attracted relatively little attention. This paper argues that the auction mechanism is central to protecting farmers' interests in a given market, even in the presence of collusion among some large buyers.

Agricultural marketing in India suffers from inefficiency, a disconnect between the prices received by producers and the prices paid by consumers, fragmented marketing channels, poor infrastructure and policy distortions. Urgent reforms are needed to address these inadequacies and check the excesses of middlemen. While encouraging new models that improve the bargaining power of producers and scaling up successful experiments, producers' companies and cooperative marketing societies could be promoted to provide alternative avenues for sale of produce.

This paper is a review of the literature on agricultural commodity markets in India, in relation to the three vital roles these markets are thought to play. It outlines the strengths and limitations of each approach and shows how they contribute to our understanding of the workings of real markets. The paper also suggests a holistic view of markets, built on the basis of the insights of existing literature to enrich our knowledge of the complexity and diversity of real markets and assist realistic policymaking.

In recent years, agricultural markets in India have grown in size and complexity, not only in terms of volumes and commodities traded but also in terms of regulatory reforms and a proliferation of new marketing channels and arrangements, with new and evolving roles played by both state and private players. A new generation of theoretically-grounded empirical research is urgently needed to make sense of these rapidly changing agricultural markets and their linkages.