In late 1970s and through 1980s, state control in agricultural marketing was taken as the best for the development of peasant agriculture. Later however, state failure was claimed and the need for market oriented strategy has been advocated. Both had their own impact on peasant producers. This paper discuses their impact on the peasantry. It is found that it should not be a question of statist or markets substituting each other but should operate in a complementary way to improve the agricultural marketing system and enhance peasant agriculture.