Foreign Retailers in India

Posted: December 1, 2011 in Day 2 Day

I remember getting list from my mom and buying things from local kirana shop.It was exciting in the beginning and became a boring job then on.

Now you cannot say the same as kids are excited to buy from supermarket.We are moving to the culture of Malls,restaurants and supermarkets.Blame it on Sodexho passes or the glam we want to buy from supermarkets.I have seen people buying just for the sake of entering a supermarket.People are ready to buy one item and stand for hours together to get it billed.Supermarkets make you buy more items than you are intention.

Mostly people feel it fun doing a shopping from supermarket.For most of them it is familys day out.Basically it adds life to your shopping.If we say foreign players will push small retailers away from business.That has already been started by Reliance,More,Heritage and such supermarkets.I have seen person selling vegetables in push cart buying from reliance.

Not entire country would be buying from Walmart or any player for that matter.They can open in towns that have 1 million population.

Foreign retailers may have to reserve at least half of their jobs in superstores for rural youth and source more than the mandated 30% from micro and small industries.Farm lobbies feel foreign supermarkets direct buy from farmers will shorten the supply chain and get growers a larger share of the final selling price.

India has 600 million farmers, 1,200 million consumers and 5 million traders.For 5 million traders we are keeping 1800 million at stake.The stranglehold of middlemen and traders is at the root of rural poverty and India’s food inflation.

What a farmer sells for 1 is sold at the mandi at 2, which becomes 3 at the mandi at the consumption centre and 4 when it reaches the consumer through a retailer.This is the reason why 5Rs kg onion that farmer sells I pay 35Rs to purchase it.mandi system being the main cause.

We have lot of inefficiencies in supply chain.35-40% of fruit and vegetables and nearly 10% of food grains in India are wasted annually.

The direct employment generated by the organised retail sector in India over the coming five years will be around 1.7 million jobs.This move will integrate small and medium-size enterprises into the modern trade process.It would also ensure a more transparent mechanism for pricing, and better access to the intermediate market, in particular at the international level.

One of my friend suggested cooperative stores could also bridge supply chain.I have visited Amudham Co-op store.Government maintaining things would make it more messy.Politicians would be allotting shops to their kith and kin.

This move will do what Manmohan singh’s privatisation did to India in 1991 provided proper clauses and laws ensure goods are directly bought from farmers.It is definitely win win for consumers,farmers and retailers.

Parties are opposing for vote bank and creating an impression that foreigners will take over.Come on we are in the world of globalisation.I would like to see TATA Star bazaar and Reliance in foreign countries.

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