Our policies were based on (Protection Based):
◦ Acute shortage of food items
◦ Poverty and Poor Purchasing power
◦ Low level of Foreign exchange
Current Scenario (Market Driven):
◦ Surplus Food Items
◦ High Purchasing Power
◦ Changing preferences of Consumers
◦ Sufficient FOREX
In 1997, FDI in wholesale “Cash & Carry” allowed upto
100%under automatic route.
In 2006, 51% FDI in single brand retail allowed and
Louis, Vuitton, JimmiChoo, Christian dior and other
In Nov 2011, cabinet allowed 51% FDI in multi brand
and 100% in single brand.
A large disagreement and protest observed.
On Dec 07,2011, All party meeting was convened and
the matter was put on hold.
• Global Retail players: Walmart, Tesco, Carefour,
Metro, Ikea etc
• Global retail giant brings must trust their ability to
bring about a positive transformation in the lives of
Indian consumers, entrepreneurs and employs who
hope to become their direct and indirect associates.
• India’s economic future and its potential and capability
to offer a win preposition for the retailers and others
including the consumers , the producers, the
employees and government.
International retailers must also encourage their
global suppliers to also repose a similar level of
confidence in India by creating new manufacturing
capacities within India so that india’s
manufacturing sector gets a further fillip, create
new jobs beyond the retail shop floors and make
the producer- consumer supply chain more
They must invests in marketing infrastructure.
• Govt should remove bottlenecks and irritants.
• Antediluvian policies that serve the interest of no one while
creating value loss at various stages.
• Farm products must be given a border free/octori free pan –
India market in order to create efficient supply chain.
• Centre & State must simplify and modernize shop and
• For inclusive growth ,modern retail also calls for structural
reforms in Agril Sector which includes APMC Reforms by
states, Defragmentation of highly fragmented holding.
Formation of farmer’s cooperatives &Producers Company to
allow economies of scale.
• Incentives for post farm gate processing of Agril. Products.
• Keeping in view that Agri busuness enterprises look
for direct tie-up with farmers ,the Companies Act was
amended in 2004.
• Farmers are joining Indian industries and setting up
producers companies by pooling together the land and
produce of their shareholders.This provide economies
of scale & collective negotiation in the market.
• These companies are signing lucrative deals with
large retail chains, food companies and exporters
keen to establish reliable supply chains.
• More than 200 producers companies have been
formed with an average of 1000 members
Features Producer cooperative Producer Company
Registration Cooperative Society Act Companies Act
Membership Open only to individual and
Only those who participate in
Transaction based Producer & corporate entity
can together float a producer
Shares Not tradable Not tradable but transferable
Voting Rights 1 person one vote but Govt
& Registrar holds veto
I person one vote Those not
having transaction with
company cannot vote
Reserves Created if there is profits Mandatory to create every
Role of registering
Administrative Overbearing None
Stages in making producer Company:
Stage-1: aggregator, Input provider, Knowledge
provider stage present activity mostly.
Stage-2:Intermediating with corporate entities stage ,
Some activity seen
Stage-3:Own processing facility, Brands & market
Channel, future Action
Large no of Buyers (individual consumers, retailers,
processors,traders & Sellers(producers)
Free entry & exit (Domestically or Globally)
We must remember that we are founder signatory of
WTO and our corporate houses have made
investments in other countries also.
Based on current trend of growth and inflation Inda’s
nominal GDP will be about $ 8000 billion in 2026.
The size of india’s retail market would have also
moved up from about $500 billion in 2011 to $2500
billion in 2026.
Traditional retail account $ 475 billion of this market.
Even if modern retail attracts as $150 billion over the
next 15 years($10billion/yr), the size of modern retail
is not likely to cross $300 billion, implying the
traditional retail will account about $2200 billion by
2026 i.e more than 4 timesof current size.
Our urban or semi urban planner has no plan to
provide space for such a huge retail sector .
City Employment (in
Greater Mumbai 19.1
June 2011 % growth
No of Big Bazar Outlets 56 149
No of Food Bazar 20 149
No of Centrals 4 10
No of KBs’ fair Price
No of e zones 0 39
Provide credit Up & Down the supply
chain, from the farmer to the
neighborhood vegetable seller.
Stand ready to buy all produce from
farmers irrespective of quality, which
agribusiness companies are unwilling to
Deep understanding of market, products
Squeezing both ends of supply
chain, paying farmers low price &
forcing consumers to pay higher
infrastructure like cold chain etc
resulting post harvest losses upto %
Acting as a cartel and exploiting both (producer
It will invite many east India companies
The no of independent retailers and street hawkers is
more than 15 million, It will ruin local Kirana industries.