I'm not sure if a few farmers getting together in a market is centralisation. If they all sold wholesale their goods to a shop, that would be it.
Of course the shop will get a cut but it'll work every day for 10 hours while the market will be for a couple of hours in a single day. Also that frees plenty of time for the farmers. Not to talk about the fact many farmers are introvert and have a hard time marketing their crops
So in your story, each and every one of the farmers failed in different way. The administrator did not. The village people were failed by the farmers.
A fail is not something inherently bad. Maybe the farmers will learn a lesson and start over once they can manage it.
So centralisation is also something not inherently bad. What must be kept in mind is the actual scale of things and the limits of the possible in the context of permaculture ethics.
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