Abstract
Bringing in organized retailers to mediate in the market appears to substantially lighten the farmer’s burden of marketing. However, several issues have to be resolved such as rejection, product wastage and local resistances, but not least among them in significance is the question: how will the price be decided?
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Notes
- 1.
Recent reports that a particular global retail giant has replaced 0.2 million traditional retailers in Mexico, a country with a population of only 115 million, have been in discussion in India where the traditional retailers constitute 4 % of the country’s population. While this is an irreparable loss, the current controversy actually stems from another graver issue that involves the alleged payment of bribes by the company to have this complete access in the country (Business Line May 31, 2012).
- 2.
A joint venture between Spencer’s and Hong Kong’s regional multinational supermarket chains – Dairy Farm International – was probably the first example.
- 3.
The estimated share of organized retail in total retail food market has increased from below 10 % to nearly 60 % in recent times in various countries in South America, South Africa, East Asia (outside China), Southeast Asia and Central America (Reardon and Timmer 2007).
- 4.
Less than 2 % of food products are sold through modern chains (Deodhar et al. 2006). Even in the capital of India, majority of the distribution of fruits and vegetables is done through ‘push-cut’ retailers and ‘wet market’ retailers, but contradictory to experiences in other countries (World Bank 2008), modern retail stores in Delhi spread equally to rich and poor neighbourhoods. In Delhi the roll-out of modern retail was disturbed by the closure of Subhiksha shops, but compared to southern cities like Hyderabad and Bangalore that were the birth place of the change, Delhi might be showing higher growth rate as a latecomer.
- 5.
Investigation for collecting primary information is conducted by the Agro-Economic Research Centres (AERCs) in the Himachal Pradesh University, Shimla; T. M. Bhagalpur University, Bhagalpur; and University of Delhi, Delhi.
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Ghosh, N. (2013). Selling to Organized Retailers. In: India’s Agricultural Marketing. India Studies in Business and Economics. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1572-1_10
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