The agricultural marketing infrastructure may include physical and financial infrastructure. At present, the need for these market infrastructures has been increased due to increased production and marketed surplus. The study was conducted in regulated markets of Karnataka. The results revealed that among the market functionaries, the traders accounted for 16.26 per cent followed by hamals (15.41 %) in the State indicating large quantity of market arrivals. Growth of market arrivals of all selected commodities in the state registered a negative growth rate due to low productivity and low prices. Performance of financial indicators for the state as a whole revealed that income (Rs.10971 lakh) is higher than expenditure (Rs.6961 lakh). Income-expenditure ratio remains above unity (1.59) throughout the study period and showed an increasing trend, showing better financial performance. Market fee registered a significant growth and licence fee collection showed a marginal increase, indicated that number of traders and other market functionaries was not increased in accordance with the increase in arrivals, therefore, the absorption of trade was mainly in the hands of few traders and market functionaries. So liberalization of markets may lead to better competition and increase in number of traders and other functionaries which may result in equalization of trade among the traders and increase in producers share in consumer rupee.