The apprehensions continue despite a slew of reports from PricewaterHouse Coopers, KSA Technopak, ICRIER, CII et al, all stating that modern organised retail is an idea whose time has come. Irrespective whether you call these organisations “stooges of modern retail behemoths”, the fact is that most of them conclusively opine that modern retail will, in fact, not harm the 12 million mom & pop stores and hawkers that the protestors are routinely brandishing. “In fact, most of this 12 million small retailers affected are in small town and rural India, while the $35 billion proposed modern retail investments are specifically targeted at bigger cities and towns, as of now,” explains Sen, adding that even in these cities, a modern retail outlet will at best displace only the mom & pop stores in the vicinity and not all of them operating of them. “KSA Technopak believes that, in effect, only about 3,00,000 grocery stores across the country will be effected and certainly not all 12 million.” The buzz is that even the still un-tabled ICRIER report, commissioned by the government of India to study the impact of organised retail on grocery stores and vendors has ruled out any major negative impact on them, although an e-mail to ICRIER expectedly went unanswered.
What’s more, most reports go to great lengths to explain the benefits of modern organised retail on the economy. A CII-PwC joint study titled The Rising Elephant forecasts more than eight million additional jobs; increased investment in the economy by both domestic and foreign retailers; organisation of the last mile distribution and supply chain for Indian agriculture, reducing wastage due to the present fragmented supply chain; farmers benefiting from rising productivity and better prices; enhancing sourcing and exports from India, among others. As of now, a fragmented and ill-equipped supply chain causes over 40% of India’s farm produce to go waste. The only organised sourcing by domestic companies is being done by Bharti FieldFresh and ITC, most of it is for export market.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
What’s more, most reports go to great lengths to explain the benefits of modern organised retail on the economy. A CII-PwC joint study titled The Rising Elephant forecasts more than eight million additional jobs; increased investment in the economy by both domestic and foreign retailers; organisation of the last mile distribution and supply chain for Indian agriculture, reducing wastage due to the present fragmented supply chain; farmers benefiting from rising productivity and better prices; enhancing sourcing and exports from India, among others. As of now, a fragmented and ill-equipped supply chain causes over 40% of India’s farm produce to go waste. The only organised sourcing by domestic companies is being done by Bharti FieldFresh and ITC, most of it is for export market.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
