are these middle men serving as a buffer between large parts of the population and the government? i see both positives and negatives to such a relationship... one that has evolved over a long period of time.
In a way, yes. It is an evolved relationship. Middlemen started out as traders who acted as the exchange mechanism, for example between farmer bodies and the consumers. Over time they have grown in strength and sadly in autonomy. Middlemen bodies exert huge influence over retail prices of goods in India.