InvestorQ : Are there entry barriers for small players in the commodity markets?
Sakshi Malhotra made post

Are there entry barriers for small players in the commodity markets?

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vidhya Laxmi answered.
3 years ago
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One of the major entry barriers for competition among traders and commission agents is the need to own a shop or a godown. This is keeping a lot many small players and professional entrepreneurs out of this business. Additionally, the existing large players are organized into powerful associations and they make an effort to prevent the entry of new players into the field. This limits competition and the domination of a few traders leads to middlemen controlling the value chain. One of the big challenges is the system of licensing which is too selective and too stringent and is loaded in favour of the existent players.

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