Efficient marketing ensures increased producer’s share in consumer’s price. The present study is an attempt to study the efficiency of marketing channels for mustard in Morar block of Gwalior district of M.P. during 2010-11. The total production generated by large, medium and small farmers was 1195.9, 936.1, 205.1 qtl respectively. The total household requirement under different categories was found to be 120, 104.7 and 18.35 qtl for large, medium and small farmers respectively. Thus the marketed surplus generated was 1026 (86.72%) qtl by large farmers, 852.63 qtl (92.11%) by medium farmers and 198 qtl (97.53%) by small farmers. The marketing efficiency was in inverse relation with the total costs and margins. As the number of intermediaries increased, costs and margins increased and inverse was the marketing efficiency. The study reveals that price fluctuations of mustard were the main problem expressed by 90% of the sample farmers. To conclude the main areas of concern are restriction of agricultural marketing channel and adoption of modern agricultural marketing (Gwalior Mandi) to ensure better prices to the farmer and availability of agricultural commodities to the consumer.