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India's Retail Industry

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India's Retail Industry
#59
Rajasthan farmers take to Reliance, dump mandis
MAYUR SHEKHAR JHA

TNN[ SATURDAY, JULY 07, 2007 02:43:02 AM]

NEW DELHI: This is how the cookie crumbles with organised retail. Farmers get a better deal, produce gets diverted from traditional markets and the retail major procures the supply it wants.

This script is being acted out in Rajasthan, where Reliance Industries has been allowed to buy produce directly from the farmer. The state Agricultural Produce Marketing Committee’s (APMC) Jaipur centre (Chomu mandi) has reported a significant 15-20% decline in trading during June. Farmers are lining up at the Reliance collection centres (CCs) to offer their tomatoes, peas and other vegetables.

The company is now in talks with the state governments of Uttar Pradesh, Bihar and West Bengal. Eventually, these would be the most important states as far as procurement of agricultural produce for the company’s retail venture is concerned.

The most important reason attributed to the sales decline at Chomu mandi is the better deals that farmers are being able to extract while selling to RIL. Note that there is not much difference in the price being offered by RIL to farmers on various products. “

For instance, price per kg of tomato at Chomu mandi as well as at RIL’s collection centre was about Rs 10 all through June,” says a spokesperson for International Food Policy Research Institute (IFPRI), which has conducted a study on the subject. “

One significant difference is in terms of transport and off-loading costs. When farmers sell to RIL, they spend Rs 5 for a bag of 50 kg. On the other hand, in the mandi it comes to Rs 10 for a bag of 50 kg plus Rs 2-to-4 per kg for off-loading for a bag of 50 kg,” the spokesperson said.

According to him, RIL paying direct cash is also perceived as a major advantage by farmers. “In the mandis, this might or might not be the case. At times, farmers have to wait for a couple of days or a week before receiving the money,” he said.

According to a study conducted on modern retail and marketing channels in India by agri economist Bart Minten of IFPRI, farmers also think that they save a lot of time while doing transaction at RIL’s collection centres. “Farmers estimate that they save 3-4 hours in every sales transaction in CC compared to a traditional mandi. Time needed for a transaction between leaving home and getting back is about 1-3 hours in CC and 4-7 hours in mandi, where they have to wait for auction, traders, clients, better price and so on,” the study says.

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India's Retail Industry - by Guest - 10-05-2005, 08:26 PM
India's Retail Industry - by Guest - 10-08-2005, 12:49 PM
India's Retail Industry - by Guest - 12-05-2005, 11:19 PM
India's Retail Industry - by Guest - 12-14-2005, 11:38 PM
India's Retail Industry - by Guest - 12-15-2005, 12:03 AM
India's Retail Industry - by Guest - 12-15-2005, 02:20 AM
India's Retail Industry - by Guest - 12-21-2005, 12:33 AM
India's Retail Industry - by Guest - 12-24-2005, 10:11 AM
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India's Retail Industry - by Guest - 12-24-2005, 01:20 PM
India's Retail Industry - by Guest - 12-25-2005, 04:40 AM
India's Retail Industry - by Guest - 12-25-2005, 09:36 AM
India's Retail Industry - by Guest - 12-25-2005, 02:42 PM
India's Retail Industry - by Guest - 12-30-2005, 05:06 AM
India's Retail Industry - by Guest - 01-18-2006, 10:53 PM
India's Retail Industry - by Guest - 01-20-2006, 04:41 AM
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India's Retail Industry - by Guest - 01-22-2006, 08:51 AM
India's Retail Industry - by Guest - 01-22-2006, 09:14 AM
India's Retail Industry - by Guest - 01-22-2006, 09:19 AM
India's Retail Industry - by Guest - 01-22-2006, 09:49 AM
India's Retail Industry - by Guest - 01-22-2006, 09:50 AM
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India's Retail Industry - by Guest - 01-28-2006, 07:09 AM
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India's Retail Industry - by Capt M Kumar - 05-18-2008, 01:44 PM
India's Retail Industry - by Guest - 12-22-2005, 01:56 PM

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