Retail can be a huge success in India: Minister
Thursday, 20 December 2007, 02:35 IST
Printer Print Email Email
New Delhi: Organised retail can be a huge hit in India provided big retailers do not follow the western model, and instead establish a model suitable to Indian conditions, Minister of State for Food Processing Industries Subodh Kant Sahai said Monday. "Currently, widespread debate is going on retail, which has also become an issue of political debate as it is believed that organised retail will dislodge the kirana stores (neighbourhood grocers)," Sahai told Indian industry leaders at a retail conference organised by the Federation of Indian Chambers of Commerce and Industry (Ficci). "This is a myth. Retail can emerge in a big way in India provided big retailers work out their own model suitable for Indian needs and conditions. The local retailers need to be put in the mainstream and be a part of the supply chain," he added. There is currently stiff opposition to the emergence of organised retailing by big corporate houses like Reliance and Bharti. "At present, farmers are not getting due value for their produce. They are forced to sell their produce to intermediaries at prices quoted by the intermediaries," he said. Sahai said this happens due to lack of direct linkages with markets, lack of processing facilities and lack of farm pre-cooling infrastructure. "Development of organised retailing is expected to reduce wastage, enhance farmers' incomes, enhance employment through food trade and generally increase rural prosperity," he said. According to a recent study by Ficci and Ernst Young, organised retail is likely to touch $30 billion by 2010 from the current $14 billion.
Source: IANS
siliconindia