Home / Knowledge / News / Farmers & consumers favour FDI in retail - ASSOCHAM
Farmers & consumers favour FDI in retail - ASSOCHAM
06
Dec '11
A just-concluded random survey by industry body ASSOCHAM shows that an overwhelming majority of consumers and farmers in and around ten major cities across the country support the government's decision to allow 51 per cent foreign direct investments in multi-brand retail while 80% traders and middlemen are against it.

Over 90 per cent of consumers said FDI in retail will bring down prices and offer a wider choice of goods. Responses of over 2,000 people (500 each) covering farmers, consumers, kirana store and traders across ten major cities like Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Chandigarh and Lucknow were gathered earlier this week by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

With increased competition, stores will offer heavy discounts to increase their sales, according to 85 per cent of consumers. When a large number of micro, small and medium enterprises move to the organised sector, quality standards will improve and lead to good shopping experience, they said.

The entry of large retailers like US-based Wal-Mart, British giant Tesco and France's Carrefour will bring in branded goods in apparel, footwear, electronics, home appliances and various other sectors, said 86 per cent of consumers. Food retail will get a massive push as supermarkets start sourcing products directly from farmers.

Nearly 78 per cent of farmers too said they will get the right price from multi-format stores with the number of intermediaries being cut. Fruits and vegetables currently pass through five layers of greedy middlemen and each adds a margin, leading to substantial difference in farm gate prices, wholesale prices and what the consumers ultimately pay at the retail store.

Electronic weights, quality specifications and improved yields will also benefit the farmers. Foreign retail majors will set up their cold storage facilities, bring in investments in back-end infrastructure, reduce the huge wastages and ultimately benefit end-users.

However, over 82 per cent of the kirana stores said big stores cannot offer the convenience of kirana stores. The mom-and-pop stores sell products in the neighbourhood, offer free home delivery and offer monthly credit to regular customers.

Over 75 per cent of the traders said the companies producing consumer items depend on their marketing infrastructure and network to push sales through multiple channels. So the influx of foreign funds into multi-brand retail will change the rules of Indian industry as large retailers bring the new technologies, processes to bring down the costs. Many companies may have to accept lower margins for greater volumes, traders said.

Associated Chambers of Commerce and Industry of India (ASSOCHAM)


Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search