The greater emphasis on cereal production especially rice and wheat in the past to achieve food security, which undoubtedly resulted in lower output prices and higher profitability, is now dampening agricultural growth. To revitalize agriculture in Punjab, agricultural diversification towards high value commodities (HVCs) is considered as one of the most promising strategies. The major constraints inhibiting such diversification efforts have been the marketing opportunities for high value crops especially fruits and vegetables owing to their perishable nature. Thus there is need to evolve innovative marketing institutions that link farmers with the markets for speedy and remunerative disposal of fruits and vegetables. The present study attempts to examine the producers’ share in the final consumer’s rupee, degree of market efficiency and incidence of post harvest losses, market practices and services of agencies involved and constraints faced by farmers and different market functionaries in the emerging marketing channel as compared to the traditional marketing channel in the state. The study has been based on both primary as well as secondary data. The primary information for the purpose has been collected through primary surveys and informant interviews with growers, market committee members, processors, wholesalers, retailers and consumers in Jalandhar (Potato) and Ferozepur (Kinnow) districts for the study. Secondary data pertaining to the importance of these crops in study districts/state have been gathered from various secondary sources. The study has been based on a sample of 90 farmers (45 potato growers from Jalandhar west and Bhogpur blocks of Jalandhar district + 45 kinnow growers from Abohar block of Ferozepur district). The reference period for the primary data survey was 2009-10. The study has brought out that that share of farmer in the retailer’s price under TMC for potato was 42.72 percent, while marketing costs as a percentage of retailer’s price was 24.30 and marketing margins as 32.97 percent. With respect to sales through EMC, the net price received by the farmers was about 40 percent higher than the price received by farmers who sold through TMC.  The Benefit Cost Ratio was found to be higher in EMC as compared to TMC. The post harvest losses are higher in TMC as compared to EMC. For every quintal of potato stored, a farmer loses about 8.14 kg under TMC while no loss in EMC since the potato purchased by PepsiCo is handled by the company after purchase. The share of the kinnow grower in the retailer’s price under TMC was 33.70 percent, while marketing costs as a percentage of retailer’s price was 20.70 and marketing margins was 33.70 percent  while the corresponding figures in case of EMC was 55, 21.6 and 23.4 per cent, respectively. The Benefit Cost Ratio for kinnow turned out to be higher in EMC as compared to TMC. Majority of farmers were satisfied with the facilities of sorting, weighing, packing and banking facilities in the market. There was no major constraint observed by 80 per cent of the potato growers while only 20 per cent reported that EMC buys only selected quality produce of specific size, shape and colour. To ensure higher prices and to reduce marketing margins of the intermediaries, growers suggested that the produce should be exported when there is a glut in the market, provide subsidised waxing and transport facilities, Government intervention especially in case of bumper harvest, reduction of market charges and intermediaries’ role. The potato growers emphasised the need to establish more processing units for value addition while kinnow growers opined that the processing plant established in the region should directly purchase kinnow from the farmers. In the absence of any government market/procurement support, the HVC acreage could not be augmented significantly in the state. Being these crops perishable in nature, providing adequate insurance cover to the growers could be one of the possible solutions to compensate for such damage to the crop in case of unseasonal rainfalls and natural calamities. There is also need of development of proper marketing mechanism with assured marketing system as in case of wheat and paddy for these crops in order to broad base HYC production in the state paving  way for diversification of Punjab agriculture at this critical juncture of over-exploitation of the natural resources.