Recently, I was invited to make a presentation on “Organized Retail : Advantage Farmers, Industry and Consumers” in an event held by Assocham, and deliver a valedictory address to the third International Water Summit organized by the Indian Chambers of Commerce, both in New Delhi. This column is based on the interactions at these forums.
In the first seminar, I gave an overview of the farm sector, the recommendations of the Saumitra Chaudhuri Committee Report, the initiatives taken by the Ministry with reference to the National Centre for Cold Chain Development, the Vegetable Initiative for Urban clusters and the PPP IAD (public Private Partnership for intensive agricultural development) under RKVY, and the policy regime which supports linkages from farm to fork.
The main thrust of the argument was that the proposition of Indian agriculture being a gamble with monsoons and markets was still valid – though some monsoon proofing had been achieved on account of interventions through the National Disaster Relief Fund, which now had very clear norms – both on trigger points and the scale of assistance. However, in spite of all the policy pronouncements on market issues, the farmers were still at the receiving end – both when production fell because of poor monsoon, and in cases of glut in a good year.
Organized Retail had an important role to play in integrating the supply chain, and ensuring that the farmers got a good share in the consumer’s rupee. However to posit that all the farmers’ woes would be sorted out because of retail, including FDI in retail was not a valid proposition. The real benefits to the producer would come because of reforms in agricultural marketing which was the main stumbling block, not just to organized retail, but also to farmers organizations trying to consolidate and sell the produce directly. In fact the Saumitra Chaudhuri report was clear that there was not just one ‘silver bullet’ to resolve all the problems of the farmers.