This article asks how local traders or middlemen continue to thrive in the agricultural markets of liberalized India. It studies this by focusing on the shifting politics of the relation between farmers and commission agents (arhtias) in post‐harvest wholesale markets in Ludhiana district, Punjab. It uses the framework of political analysis of markets towards this, paying close attention to the role of the state and the nature of interlinked markets. Drawing on intensive primary fieldwork, the article argues that the power of the arhtias is constituted differently across different commodities and in relation to different agrarian classes. At the same time, the state, notwithstanding its changing priorities, and the diversification of large farmers into the commission agent business have been crucial to their persistence in the wholesale grain markets.
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