This paper examines the organisation and functioning of state-sponsored fruit and vegetables farmers’ markets in selected urban centres of Tamil Nadu. The study assessed actual and potential contributions to more viable livelihoods for small and marginal farmers, and to increased food security for low-income urban groups. Similar initiatives are under way in a number of Indian states and in other countries in the South, as well as in Northern countries. In most cases, however, farmers’ markets are intended to benefit producers and little attention is given to the needs and constraints of specific groups of consumers. As recent evidence shows that in many countries in the South urban food insecurity and malnutrition are increasing, it is important to examine whether and how farmers’ markets can benefit low-income groups in both rural and urban areas.