Being freed from the clutches of middlemen

I REFER to the report, “PM takes middlemen to task” ( The Star, April 4), where the Prime Minister, Datuk Seri Najib Tun Razak took to task the middlemen who enrich themselves at the expense of farmers, breeders and fishermen.

Najib was reported as saying at the country’s first Bazaar Rakyat 1Malaysia near Kuantan, that they exploited situations to set high prices for consumers.

He was quoted as saying: “There is a need to control the supply chain and improve efficiency in terms of logistics. We must find better ways to bring sea and farm produce to consumers. This way, consumers can buy cheaper products, while industry players get high income.”

Najib was also reported as saying, that besides the pasar tani (farmers’ market), the new bazaar was another platform that could connect producers to consumers directly.

Middlemen often “pre-book” the produce of farmers, breeders and fishermen by advancing them credit (working capital) to buy fertilisers pesticides etc. to farmers; day old chicks, poultry feed etc. to poultry rearers; nets, diesel etc to fishermen.

These farmers, livestock rearers and fishermen are therefore obliged to sell their produce to the middlemen at the prices dictated by them.

If the Farmers’ Marketing Authority (Fama) or other government agencies could advance the much-needed working capital to the farmers, livestock breeders, and fishermen at low interest rates, they could be freed from the never ending cycle of exploitation by the middlemen.

This would mean cheaper prices for the consumers and more profits to the farmers, breeders and fishermen.

With the increased profits, at being freed from the clutches of the middlemen, they can now save the extra profits for their working capital to buy the next round of fertilisers, pesticides, livestock feed, fishing nets, diesel etc. and will never again be indebted to anybody for their working capital with the resultant exploitation and chronic poverty.