There is however another angle to this FDI thing in retail sector :the existing scenario is that the whole-sale traders procure food from farmers at a very cheap price and not only pass it on to retailers at their own determined price but a...lso hoard the food stuff to be released at exorbitant price when the supply decreases. At times, particularly when the crop is bumper farmers are forced to throw it on roads as the transportation cost is not redeemable at other times even picking up of the crop gets nonviable economically .The 1st picture is of potato cultivation in central UP and the 2nd reality is with tomato farming .More over the traders form syndicate to exploit consumers by artificial hike in prices as is happening now and our stupid ministers are stating that the high inflation in food items is due to increased demand as people are getting more money out of growth in Indian economy ,ignoring the fact that the growth they are talking of is only for a fraction of the population - for the rest it's job-less growth . To top it all we have those vested interests represented by central minister for lobbying for sugar and onion monopolists. The perceived threat is that big multinational players like Walmart ,Tesco and Carefour will eat up neighborhood retailers and once they establish their monopoly they will sell the goods at sky-high prices ,thus consumers will not be benefited , farm produce will be snatched away at throw away returns to farmers and 4o million small shopkeepers will be thrown out of job .
Assumptions and presumptions are not wise man's way of taking up issues ,yes politicos have their compulsions of vote bank , but it is wrongly assessed since this 40 million is the one which has a money to invest in business and they are always free to switch over to some other business activity in case their present KIRANA store thing is turning unprofitable as they did when these people shifted from photocopying to STD booths and to recharge vouchers for mobiles and even selling of mobile phones ,after-all they are enterprising - aren't they .
It is beyond any doubt that consumers will be benefited by way of quality and economy and by whatever mathematical calculation 40 million is too small a figure compared to 1.20 billion .Lets us also not forget that the arm-twisting days of Raj era has long passed its nightmarish life span ,they need our market as we need their money .One caution is there and it could be a Red Flag for those in power : don't let them violate the law of the land and ensure implementation of labor laws with a certainty of stringent punishment for any violation .The opening of these stores must not be restricted to cities with population of 10 lakhs and more as it could be a real game changer in employment market for educated youth .
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