There would be no need to buy Produce other than for for quest completion anyway, so yeah, just clothing and items could be resold this way.
I actually started the game thinking this happened anyway, was v.dissapointed when I realised the weapons I sold to a general store effectively dissapeared afterwards.
Also, to give a realistic purpose, maybe the produce you sell for cash would then belong to that town (i.e. cannot be taken out/bought by members/players for quest completion). This would open up a whole new potential feature, which is maybe for another thread,
i.e.
town's general store has bought 20 pieces of corn.
this town can now sell whiskey.
OR
town's general store has bought 3 pieces of cloth, 1 pair of handcuffs, and 1 Rusty shot gun
this town can now employ a Deputy. Because so far, produce is useless except for selling for cheap, or for using on like one quest.
Also allows for future buildings, like a town could build a factory where they could turn produce like tobacco leaves into tobacco to sell, or clothings into saleable items.