Is SEZ really a boon for the farmers?

he super market revolution has been underway in developing countries. Supermarkets refers to all modern retail which includes chain stores of various formats such as supermarket, hypermarket and convenience and neighborhood stores have now gone well beyond the initial upper and middle class clientele to reach the mass market.
 
Until recently, super markets were not a major form of food retailing in developing countries and confined to only niche markets for higher income consumers in major urban markets.
 
It is a two-edged sword. On the one hand it can lower food prices for consumers and create opportunities for farmers, processors to gain access to quality differentiated food markets and raise income.
 
On the other hand, it can create challenges for small retailers, farmers and processors who are not equipped to meet the new competition and requirements of super markets.
 
Government has to put in place a number of policies to help both traditional retailers and small farmers pursue policies of competitiveness in the era of supermarket revolutions.
 
This is being perceived as the first wave of super marketisation. The South-East Asian supermarkets followed the suit about five to seven years later and now supermarkets are registering rapid growth in many East Asian countries.
 
A third wave has swept across East-Central Europe, and Africa led by South Africa. At present, West Africa, China and India are witnessing a supermarket revolution.
 
PARADIGM SHIFT:
A paradigm shift is occurring in the retail sector of the Indian economy. This new paradigm of market orientation to suit small and marginal farmers is a real challenge to the agricultural research system. Indian retail industry, which is worth $300 billion in 2006, is likely to reach $427 billion by 2010 and to $637 billion by 2015. Merely 3 per cent of retail in India is organised.
 
Visible retail revolution is on in India. In a short span of two years, retailing has exploded on the Indian firmament as a humungous business opportunity.
 
Organised retailing has come some way from what it was say as recent as five years ago, but there is a firm belief that: It is only the beginning and the best is yet to come.
 
Currently, India is one of the top five global destinations for retail investment with more than 21 million people employed in this sector which contribute 13 per cent of the nation’s GDP. In such a scenario food retailing cannot be far behind which account for nearly 60 per cent of the total and that too almost entirely in what is described as unorganised sector.
 
This is where organised retail has perceived an opportunity. India’s food sector is set to expand exponentially in the coming years.
 
Given the existing low per capita consumption, every increase in income will first translate into higher demand for food until the time basic food needs are satisfied.
 
Increasing urbanisation and growth of small towns throughout the country coupled with increased income level, diversified food habits, growth of working women outside home, willingness to pay for better quality and need for convenience drive demand for processed, ready-to-cook or ready-to-eat, convenience foods, packaged and preferably branded.
 
CORPORATE ENTRY:
The traditional model of farm plucked vegetables reaching the market and sold the same day by the petty traders had to slowly give way to sophisticated storage, handling and retailing of these commodities over few days by organised market chains.
 
The initiatives by large corporates are also increasing their outlets by connecting to farmers directly. With appropriate contacting mechanisms stakeholders can also connect to processing industries and fast food chain such as McDonalds, KFC, Pizza Hut and Narulas which continue to expand their operations in India.
 
Corporates know that the Indian agriculture sector is a potential goldmine that has not been tapped till now and farmers have a lot of reasons to be happy with the corporate entry into agriculture scenario.
 
With plenty of money and manpower’s at their disposal, these corporate Goliaths are attempting to give a new meaning to Indian agriculture
 
Many of these corporate are making a beeline to farmers’ doorstep for buying their produce, something, which the poor farmers have never experienced so far.
 
All the times it was the farmers who had to take his produce to the market and search for marketing channels. Corporate entry into agriculture could find an answer that has been plaguing the farm sector for long — proper and affordable price to the farmers.
 
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