Village traders are the initiators of the trade as they
play an important role for assembling the produce
after the harvest of the chillies. They have good
relations with commission agents and wholesalers
from whom they get the trade information quite
regularly. Traditionally, village merchants are in
the trade as they play the role of financiers to the
farmers, therefore there is a commitment on the
part of the farmers to prefer village merchants.
For their services they take certain price advantage
with the farmers. Particularly in chillies trade one
comes across even the commission agents acting as
wholesalers and trade with other major assembling
markets. Storing in AC godowns, another common
practice normally is practised by the wholesalers.
Particularly in Guntur area, large farmers also
take the best advantage of the presence of cold
storage units in good numbers for taking the price
advantage. When it comes to inter-state movements
wholesale traders play dominant role by storing
the produce in the cold storages, bearing all the