Problem

Middleman control of rural marketing

Other Names:
Farm tenant's dependence on middlemen
Nature:
Many Third World villagers raise products for urban markets, but because they lack direct access to these markets they receive a lower return on their sales, having to deal through middlemen. In this way, they lose the profits of direct sales, and money that otherwise could be kept in the village is dispersed. To gain immediate cash, some farmers are forced to lease some of their land to outsiders to plant, harvest and sell the produce, which again deprives them of greater income. The distance to markets, and lack of storage facilities, transport, and of communal decision to enter formal cooperatives to buy and sell merchandise and farm produce, ensures such people will continue to be passive participants in the larger economy.
Problem Type:
E: Emanations of other problems
Date of last update
14.02.1997 – 00:00 CET