Should middlemen be eliminated in the marketing channel of agricultural products?

In theory, eliminating the middlemen sounds like a good idea. This would help to lower costs for consumers who could buy products for less and for businesses who could sell their products for less. However, this may not be the most practical idea. When you buy groceries, you can get various products all in one place.

Under what circumstances can middlemen be eliminated?

With the exception of direct dealings or one-to-one transactions, no exchange can materialise without middlemen. Middlemen can be “eliminated”, but not their functions. Even in the shortest supply chain, say online buying, middlemen are needed at some points along the chain.

Are middlemen necessary in agro marketing?

Importance of middlemen! The middlemen provide quick funds for seeds and fertilisers, and even for family emergencies, said the farmers. The agents also help grade, weigh, pack and sell harvests to buyers.

Should middlemen be eliminated explain?

Eliminating the middleman usually creates a win-win for the seller and buyer from a money perspective. This ultimately makes the final customer’s price higher because he is paying for the original product costs, the costs of each buyer’s acquisition as well as the profit expected by the retailer.

Why is middleman necessary in marketing channel?

Importance of Middlemen Intermediaries are important players in every market. Both consumers and producers stand to benefit from their services. In addition to constantly matching the supply and demand in the market, middlemen provide valuable feedback to the producers about their market offering.

Is it necessary to have a middleman in marketing agricultural products yes or no and why?

The middleman has an important function in the economy of the gap bridging activities in the market network. By creating a different bundle of resource elements offered to customers the middleman takes on the function “to economize” on costs of bridging the supplier-customer gap i.e. lowering transaction costs.

How do middlemen exploit farmers?

Presence of Too Many Intermediates/Middlemen results in the exploitation of both farmers and consumers with the middlemen offering lower prices to farmers and charging higher prices from the consumers. results in a higher transaction cost and low price realization by the farmers in a regulated market.

Are middlemen necessary?

Importance of Middlemen Intermediaries are important players in every market. Buyers gain access to the right quantities of goods and services close to their homes through the intermediary channels. They benefit from other services of middlemen, such as advertising and delivery.

How can agriculture overcome lack of space?

Net cage farming is an ideal method for the people who do not have sufficient space and availability of water. In this method, organic fertilizer compound, coconut husk, dry leaves and compost are used as potting mix instead of soil. Production can be multiplied if some loose soil without gravel is added.

What are the importance of middlemen to marketing?

Both the consumers and producers gain immensely from the roles of middlemen, who ensure that there is a seamless flow of goods in the market by matching supply and demand. Intermediaries provide feedback to the producers about the market, thus influencing the decisions made by the manufacturers.

What is the role of the middleman in the agriculture industry?

Farmers→ Small Traders (Kaccha)→Larger Trader (Pakka)→Commission agent→Wholesaler→ Retailer→Consumer In the absence of a direct link with the consumers, the farmers are at the mercy of the middlemen who occupy the entire space between the production and the ultimate sale of the produce.

Can we eliminate middlemen in supply chain management?

Middlemen can be “eliminated”, but not their functions. Even in the shortest supply chain, say online buying, middlemen are needed at some points along the chain. For instance, a broker is needed to match orders and supplies, warehouses for storage and transporters for shipment.

What is agricultural produce market committee?

The Government of India introduced the Agricultural Produce Market Committee (APMC) Act in 1963- with a linchpin focus on eliminating the exploitation of farmers by middlemen. The Act guarantees establishment of regulated markets or ‘ mandis’, wherein farmers could sell their produce at a reasonable price and in a transparent manner.

Are there any middlemen in the industry?

Thus, fundamental middlemen such as insurance agencies are almost non-existent in industry, with the exception the sectors of commodities such as crude palm oil or rubber, which are traded in futures exchanges. In some cases, there are middlemen processors such as rice millers in the padi and rice supply chain.