We investigated the distribution system of agricultural products in Karnataka State by studying data provided by the Karnataka State Agricultural Marketing Board. We focused on the following factors of wholesale markets: size, location, and fluctuations in price and arrival times. We concluded that: (1) Potatoes and onions are brought to markets in Bangalore in response to consumer demand, in contrast to grains and other commercial crops which are marketed in the major growing centers. (2) A supply system, which satisfies year-round demand, has been established to bring produce from outlying areas to the consumer markets. This new system adds grains to the list of commodities that have become available to consumers all year. Note that this newer supply system, which provides fresh potatoes and onions throughout the year, reflects the increased buying power in the major cities of the newly rich, who can afford to pay the transportation costs of perishable produce during off-season months. (3) A supply system, which distributes goods over a wide area, is indispensable for maintaining a steady supply of agricultural commodities, especially for products in season. However, poor harvests or inflation in the remote markets can cause problems or disrupt delivery, especially to such big cities as Bangalore. For example the 'onion crisis of 1988'demonstrated that inflationary periods can occur in both small local markets and in the big markets of Bangalore.