Problem

Undue control of prices by intermediaries

Other Names:
Profiteering on village products by middlemen
Nature:
Many Third World farmers do not market their products but rather depend on "middlemen" to be the link between the farm and the market. By creating a false market in which local prices are manipulated below the level of the actual market, the middleman effectively reduces the profit margin for the farmer. This manipulation of the local market creates an annual crisis of indebtedness when, in order to sustain family and farm, the farmer is forced to borrow capital at high rates of interest, which intensifies a debilitating cycle. Probably more damaging than the financial crisis is the position of subservience in which the farmer is placed: he is not it control of his own destiny or the destiny of his land.
Problem Type:
E: Emanations of other problems
Subject(s):
VillagesFinancePurchasing, supplyingAgencies, dealersProductsControl
Date of last update
12.05.2000 – 00:00 CEST