Why were alternate marketing channels set up?

Question

Accepted Answer

Alternate marketing channels were set up mainly to eliminate the middlemen between the farmer and the consumer. When farmers sell their produce directly to consumers, their share in the price paid by the consumer increases, which gives a boost to the incomes of small farmers. Through contracts with national and multinational companies, farmers are also encouraged to grow farm products of the desired quality, provided seeds and other inputs, and assured procurement of their produce at pre-decided prices. These channels thus raise farmers' incomes, expand the market for farm products and reduce their price risk.