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Busting the middleman myth
ISLAMABAD:
A constantly hammering theme in Pakistan’s economic policy circles as well as popular debate about economic challenges is the role of middleman who is often considered a source of all types of evil in the market process.
Although the middleman or distributor is an integral part of each economic sector – think who brings clothes from factories to shops, this debate is more pronounced in the agriculture market.
The middleman, it is believed, exploits both the poor farmer and poor consumer and makes exorbitant profit at the cost of social welfare, moral values and efficiency. This obsession with the middleman has consumed energies of economic policymakers as well as commentators to a disproportionate degree and all kinds of “out-of-the-box” solutions are being proposed.