Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Notice (8): Undefined variable: urlPrefix [APP/Template/Layout/printlayout.ctp, line 8]latest-news-updates/fdi-in-retail-farmers-gain-but-smes-kiranas-complain-by-sutanuka-ghosal-madhvi-sally-11533.html"/> LATEST NEWS UPDATES | FDI in retail: Farmers gain, but SMEs & kiranas complain by Sutanuka Ghosal & Madhvi Sally | Im4change.org
Resource centre on India's rural distress
 
 

FDI in retail: Farmers gain, but SMEs & kiranas complain by Sutanuka Ghosal & Madhvi Sally
-The Economic Times
 
With the entry of foreign supermarket players, farmers across India's six lakh villages stand to gain from greater market access, higher profits, better technology and direct linkage with consumers. 

"Direct purchase from farms has hugely benefited small farmers like us who were not getting good returns by selling in the local mandi," said Abdul Majid, from Malerkotla in Punjab, who has been selling vegetables from his one-acre farm to Bharti Walmart ever since it opened its first cashand-carry store in Amritsar. "Payments are directly credited into bank accounts and we are free from commission agents." 

Large retailers can expect to save 10%-15 % in commissions by purchasing fruits and vegetables directly. Indian consumers pay up to two and a half times the price paid to a farmer, compared with one and a half times in developed markets where the penetration of organised retail is higher. 

Farmers can also benefit from investment in supply chains and logistics by retailers and logistics companies. "There is a huge gap in the consumer and retailer price. The APMC system is of hardly any use to farmers," said Raju Shetti, leader of the Maharashtra-based farmers' association Swabhimani Shetkari Sangathana. 

Modern retail has improved the quality of produce globally, pointed out Shrinivas Ramanujam, vice president, Adani Agri Fresh Limited, a logistics and warehousing company that supplies branded apples to large retailers.

About 30% of India's total production of fruits and vegetables is wasted every year due to inadequate cold storage and transport facilities. Crisil Research estimates that almost half of this wastage can be prevented if fruit and vegetable retailers have access to specialised cold storage facilities and refrigerated trucks. 

Small traders are, however, a worried lot. "Small traders will not be able to withstand the competition. This will lead to the monopoly of foreign players and farmers will have to sell their produce dictated solely by organised retail," said Changdevrao Holkar, member of the board of directors of government-run National Agricultural Co-operative Marketing Federation. 

"The government should bring in legislation like the one for the small-scale industries, for protecting small traders before allowing FDI in retail," said Ajit Setia, a jaggery trader and president of Poona Merchants Chamber. "It can include provisions like declining permission to sell below a minimum price as in Germany, so as to prevent unhealthy competition." 

Small and medium enterprises are also apprehensive. "Foreign retailers will impact supply chains that are being fed by SMEs and there will be displacement of SMEs if it is not checked," said Anil Bhardwaj, secretary general of the Federation of Indian Micro, Small and Medium Enterprises. He said the government should start by imposing compulsory domestic sourcing requirement, as in the automobile sector. The provision for 30% compulsory sourcing from SMEs in the draft policy should also be gradually increased, he said. 

"We will have to close shop," said Sunil Kumar Gupta, president of the Kamla Nagar Market Association in Delhi, voicing the concerns of the owners of 'kirana' stores. He said stores such as his survived the onslaught of domestic retailers like Big Bazaar because of their relationships with customers. "This might not work anymore," he said 

(With inputs from Pramugdha Mamgain, Jayashree Bhosale, Amiti Sen & Ravi Teja Sharma)