The phenomenon of 1-2-3-4 is often cited in this regard to show how while the farmer gets one Rupee and the consumer pays four Rupees, the intermediaries pocket the rest. In an inflationary environment, there could be a tendency to manage the supply chain to the advantage of the middle men. This calls for greater competition and stricter rules to deal with anti-competitive practices.
Better transportation and warehousing facilities could also lower costs and reduce waste of perishable products. Multi-brand retail has been seen as a possible means to improve the supply chain that will be beneficial to both producers and consumers.