Big retailers to take care of mom-&-pop stores
Govt asks big retailers to chart out India-specific strategy for organised retail, which would result in inclusive growth of mom-&-pop outlets.
By Rajat Guha, TNN |
NEW DELHI: India Inc is all set to script an Indian model for retail growth. The government has asked big retailers to chart out an India-specific strategy for organised retail, which would result in inclusive growth of mom-&-pop outlets.
���We have had two rounds of meetings with retailers such as Reliance, AVB Group, Future Group, Bharti and the Tatas,��� minister for food processing industries Subodh Kant Sahay told ET. ���We want small shopkeepers to get access to big supply chains. Everybody should benefit,��� he said. This could be the answer to the political criticism over large retail trampling small kirana shops.
���Organised retail, in the long term, would create a market as it would help boost supply-chain management for our farm produce also. Without retail, farmers cannot get optimum value for their produce. Due to lack of an efficient supply-chain network, more than half of India���s produce gets wasted,��� Mr Sahay said.
India could consider opening up its $330-billion retail market to foreign investment after it is convinced that the kirana stores will not be affected by big retailers. ���Organised retail, backed by an efficient supply chain, has the potential of raising the rate of growth of the food processing sector from 13% to 20% in the next three to five years,��� the minister added.
Last year, states like Uttar Pradesh cracked down on organised retail, especially in fruit and vegetables, following protests from vendors. This sector has a strong lobby of middlemen, who control significant chunks of local vote banks.
���We have had two rounds of meetings with retailers such as Reliance, AVB Group, Future Group, Bharti and the Tatas,��� minister for food processing industries Subodh Kant Sahay told ET. ���We want small shopkeepers to get access to big supply chains. Everybody should benefit,��� he said. This could be the answer to the political criticism over large retail trampling small kirana shops.
���Organised retail, in the long term, would create a market as it would help boost supply-chain management for our farm produce also. Without retail, farmers cannot get optimum value for their produce. Due to lack of an efficient supply-chain network, more than half of India���s produce gets wasted,��� Mr Sahay said.
India could consider opening up its $330-billion retail market to foreign investment after it is convinced that the kirana stores will not be affected by big retailers. ���Organised retail, backed by an efficient supply chain, has the potential of raising the rate of growth of the food processing sector from 13% to 20% in the next three to five years,��� the minister added.
Last year, states like Uttar Pradesh cracked down on organised retail, especially in fruit and vegetables, following protests from vendors. This sector has a strong lobby of middlemen, who control significant chunks of local vote banks.
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