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There is a general agreement among agricultural economists that a success in increasing production depends, to a large extent, on effective marketing organiza - tion,Therefore, study of agricultural marketing channels in developing countries in order to increase efficiency is a must. On this basis the fresh fruit and vegetable wholesale market in Shiraz was studied. It was found out that the structure of market is rather complicated. The merchants serve as intermediary between producers and retailers. They sell the products upon receiving commission fees. In addition they extend credit, provide farm supplies to producers and buy pre-harvest products. By doing above mentioned functions, the merchants could control the flow of products in the town market and earn monopoly profits. They also earn speculative gains in the period of short supply. To overcome existing problems, the study recommended increasing competition in the market through establishing marketing co- operatives in various regions producing fresh fruits and vegetables.