The concept of local markets in the early days was that only. The concept of 'Uzhavar Sandai' or agricultural producers market is also like that only.
However if the production is large, the consumers or buyers are also large and at different places, then there may need a middle man/middle men to facilitate the trade . Nowadays all business need middlemen. They earn profits many times more than the producers.
1. The commodity gets costlier because of commission involved through the middle man.
2. The high price will lead commodity becoming less competitive in comparison to the other similar commodities available in the market.
Because of the above implications, the original producer keeps their margin to low & so not earning the good profit. In today's world, it is possible to sell directly to the customer without involving the middle man because of the presence of technology in the form of mobile communications & Internet. The below points could be important,
1. One can go ahead with their own internet site, briefing their business along the goods & the services, they are dealing onto.
2. Establishing the local suppliers within different regions. This will also improve the customer's immediate feedback & customer support which will further improve in the increasing sales
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
To avoid this problem only for some products and to pass on that profit to the manufacturer only the concept of Rytu Bazar is started and that concept is working alright.If this concept is to be implemented in other areas also the producer has to have the capacity of keeping stocks and selling when the rates increased. But the limitation of storing facility is one big problem.
The online trading is not without a third party. The manufacturer is not directly dealing here also. The agents will come into picture in this case also.