Think about it what will happen if the farmer sell their forms product without middle man
Answers
If the farmers are able to sell their agricultural products and commodities directly in the final market without any supply chain intervention,then their revenue and profit share could increase significantly.
Explanation:
In the agricultural market,increasing presence of middlemen,retailers,distributors etc implies the higher incidence of price and revenue transmission.The middlemen evidently charge a considerable commission from the farmer's revenue share and can be considered as an expense for the farmers.However,due to practical constraints such as the geographical distance between the final market and place of production,it is often not possible for farmers to sell their produces directly to the final market.Hence,whatever price or revenue received by the farmers are less the commission taken by the supply chain agents such as middlemen.Hence,direct selling of the products by farmers to the final consumers could reduce or eliminate these commissions and additional payments considerably.