What the retail giants like Wal-Mart can do is a vertical integration in the supply chain, and there by choking the middlemen’s involvement from the system. It is already noticed from certain regions of the country, where deep pocket corporates like Reliance and ITC operate, that farmers have benefited from the organised retail giants’ venture. The model has succeeded because the organised retail has sourced the agricultural produce directly from farmers, which allowed them, to pay the farmers more than what the middlemen could have paid. It is often argued by the people opposed to it that the MNCs would require large farms and thus neglecting small farmers, or the retailers can leave a farmer for better opportunities, even flouting the contract with the farmers. In any of the cases the farmers are not really met with adverse effects. The moot point that is missing with the opposition is that in imperfect distribution channels the benefits of farm products’ price rise are mostly hushed up by the middlemen depriving the farmers completely on the financial gains.
Click Here to Read More......
No comments:
Post a Comment