In a detailed case study of traditional wholesale markets for vegetables in India (in the state of Uttarakhand), we find several important governance problems at horticulture wholesale markets: marketing regulations are ineffective, widespread confusion of roles exists between brokers and wholesalers and few services are being delivered in return for the money paid to brokers and wholesale market authorities. Licensing schemes and political muscle seem to be used to ensure that the system continues in its current form and that the development of closer vertical coordination, which is required in modern markets but generally bypasses brokers, is hindered.
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