Private agricultural marketing systems in developing countries are sometimes considered incapable of handling rapid growth in farm produce with adequate reward to the producer. As such, they could discourage improvements in farm productivity. This paper shows that this is not necessarily so in Pakistan. During the Green Revolution of the Sixties, when, owing to cultivation of HYVs, total production of wheat and (coarse) rice increased significantly, the marketing system facilitated the farmer’s search for a desired price. More traders entered the trade, and increased competition among them enabled the farmer to secure better prices for hi’ wheat and rice crops. The trader’s margin at different stages of marketing also went down during the Green Revolution period, signifying an improvement in the performance of agricultural markets.