> What would Reliance gain from it? If they want to be a successful middleman, their best bet is to make both sides happy.
If prices go down, they sell more stuff. Speaking from the Australian perspective we have a couple of large monopsony retailers (Coles, Woolworths) who brutal squeeze a lot of producers and keep prices way down.
It is very funny, you get crowds of grumpy farmers complaining that the price of milk is too low, and lots of politicians wagging their chins at the horror of it all. Then carefully not doing anything because if they manage to drive the price of milk up they will lose a lot of elections. It is great for consumers.
If prices go down, they sell more stuff. Speaking from the Australian perspective we have a couple of large monopsony retailers (Coles, Woolworths) who brutal squeeze a lot of producers and keep prices way down.
It is very funny, you get crowds of grumpy farmers complaining that the price of milk is too low, and lots of politicians wagging their chins at the horror of it all. Then carefully not doing anything because if they manage to drive the price of milk up they will lose a lot of elections. It is great for consumers.