The correct option is 1 and 2 only.
Explanation
Prior to independence, agricultural marketing in India was characterized by the dominance of private traders and moneylenders. The markets were largely unorganized and unregulated, leading to widespread exploitation of farmers who had low bargaining power and lacked storage facilities or financial resilience.
Statement-wise Analysis:
- Statement 1 is Correct: Faulty weighing was a prevalent malpractice in unorganized markets. Traders frequently used heavier weights for buying produce and lighter weights for selling, thereby cheating farmers of the actual value of their produce.
- Statement 2 is Correct: Manipulation of accounts was a common method used by traders and commission agents to deceive illiterate farmers. Unauthorized deductions and fraudulent bookkeeping ensured that farmers received significantly less than the fair price.
- Statement 3 is Incorrect: Farmers suffered from a severe lack of market information. They were often unaware of the ruling prices in wider markets and were forced to accept whatever price the local traders or moneylenders offered. There was no mechanism for the dissemination of price intelligence.
- Statement 4 is Incorrect: The problem was not excessive regulation, but rather the lack of effective government regulation. The absence of regulated market yards (which were later established as APMCs post-independence) allowed private intermediaries to operate without oversight, leading to the malpractices mentioned above.
Key Takeaway:
The pre-independence agricultural marketing system was exploitative due to market imperfections such as information asymmetry, lack of regulation, and malpractices like faulty weighing and account manipulation, necessitating the post-independence establishment of regulated markets.