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subu76
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   Posted: 11/Dec/2011 at 4:23pm |
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I'm not sure how it's a given that modern retail will automatically mean farmers will earn more.
My understanding is that in the modern retail system we'll have fewer middlemen. Shouldn't this automatically mean that middlemen will have better bargaining power and hence will squeeze suppliers more?
Offcourse, we'll have reduced wastage but not sure if that necessarily translates to better monetization for farmers
Edited by subu76 - 11/Dec/2011 at 4:25pm
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subu76
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Posted: 11/Dec/2011 at 4:55pm |
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I think one big advantage of retail might have been much lower prices. It always surprises visitors to US that many articles are much cheaper there.
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nav_1996
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Posted: 11/Dec/2011 at 5:48pm |
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Yes that has been achieved by shifting manufacturing en-mass to China and artifical US-China exchange rates. That will be suicidal to India. Walmart has played a major role in that.
There are case studies which shows how Walmart squeezes suppliers.
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manishdave
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Posted: 11/Dec/2011 at 6:41pm |
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FDI in retail was important but its importance is exaggerated. There are many reforms, not controversial, which are not being touched. Why can't govt. make reform where contracts are strictly enforceable?If breached, make sure legal course doesn't take too long. This will bring much more efficiency to bring down inflation.
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S.Varghese
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Posted: 11/Dec/2011 at 7:32pm |
Originally posted by manishdave
FDI in retail was important but its importance is exaggerated. There are many reforms, not controversial, which are not being touched. Why can't govt. make reform where contracts are strictly enforceable?If breached, make sure legal course doesn't take too long. This will bring much more efficiency to bring down inflation.
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Agree 100%.
And if the people think it is important and if the congress think it is important then they should make this a poll plank for the next election.
But I still think certain political parties are supporting the middlemen at the expense of the larger community of farmers and consumers. I hate it when politicians do this.
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Fools rush in where angels fear to tread.
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manishdave
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Posted: 11/Dec/2011 at 7:50pm |
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I am for FDI in retail or open trade for that matter. But why don't we pick low lying fruits first? We have large apartment complexes. And common maintenance is in mess. Some people just don't pay it and there is always fight. Why can't we have law for that? So many franchise business but we don't have law for that. Even if we have law for bounced checks, it takes years in court. Why? It is so simple. Why does it take so long? So FDI is not happening but move on and do what is possible. But nothing is moving in this Govt. Worst ever I have seen.
It was not just opposition. Party itself was opposed to FDI in retail. Its partners were opposed. Not getting support is problem from congress than opposition. In politics, they should have taken then into confidence. That is how it generally works. But this Govt. is so inefficient and yet so arrogant, that there is no line of communication.
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nannu_68
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Posted: 11/Dec/2011 at 9:19pm |
Originally posted by manishdave
I am for FDI in retail or open trade for that matter. But why don't we pick low lying fruits first? We have large apartment complexes. And common maintenance is in mess. Some people just don't pay it and there is always fight. Why can't we have law for that? So many franchise business but we don't have law for that. Even if we have law for bounced checks, it takes years in court. Why? It is so simple. Why does it take so long? So FDI is not happening but move on and do what is possible. But nothing is moving in this Govt. Worst ever I have seen.
It was not just opposition. Party itself was opposed to FDI in retail. Its partners were opposed. Not getting support is problem from congress than opposition. In politics, they should have taken then into confidence. That is how it generally works. But this Govt. is so inefficient and yet so arrogant, that there is no line of communication.
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I think they always knew what would happen to FDI in retail. Intention was to divert pressure from PC and lokayukta issues and in that they have succeded to some extent.
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nannu
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jamesvaikom
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Posted: 11/Dec/2011 at 10:35pm |
Originally posted by subu76
I'm not sure how it's a given that modern retail will automatically mean farmers will earn more.
My understanding is that in the modern retail system we'll have fewer middlemen. Shouldn't this automatically mean that middlemen will have better bargaining power and hence will squeeze suppliers more?
Offcourse, we'll have reduced wastage but not sure if that necessarily translates to better monetization for farmers |
Due to scarcity of food items there are many restrictions on using agricultural land for other purposes. But if we reduce wastage then Govt. can reduce those restrictions. Organized retailers can unlock value of crops by making value added products. If product made from a crop becomes success then value of that crop will increase. Also Organized retailers will pay more tax.
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