Monday, September 17, 2012

Ok mama ready !

After inaction for eight years, when pushed to the corner of being termed as a "junk", the Prime Minister wakes up and announces the "slew of reforms". Of course all the reforms mentioned by Government are highly commendable, and will really bring some foreign investment and foreign aid into the country

Some crisp takes on why it is actually necessary :

  1. More than FDI in retail sector, it is FDI in supply chain structure.As all the players are expected to spend 50 % on back-end infrastructure
  2. The inefficiencies in food supply are mainly due to the an ineffective supply chain. About 40% of fruits and vegetables produced every year are wasted before they reach the selling point. The foreign players alrady have experience in all other countries. So they can use this to provide better services in India too.
  3. Farmers get only 10-12% of the selling price of an horticulture product. With the advent of foreign players, this ratio will definitely be higher, as 30% of sourcing for these players should come from local SMEs
  4. Employment opportunities in retail, agro-processing, sorting ,etc. to the tune of 15 lakhs
  5. Despite 100% FDI in cold chain, it is not so efficient mainly due to the improper retail sector
Will it harm the people ?
  • Yes, it will affect kirana stores in the 53 Indian cities.
  • No, it will not harm kirana stores which are far off from these malls, because kirana stores provide a personalised experience to consumers and Indian consumers are unlikely to shift loyalty
  • No, it wont harm farmers, because Government reserves the right to first procurement. It will infact benefit the farmers by ensuring good price for their products
  • No, it wont affect SMEs at any cost
  • No, they cant eat out competition by providing very low prices. Because at very low prices they lose out a lot, in this restrictive policy
So dear politicians, stop playing game, stand up and support our Prime minister who has waken up after so many years, and who seems to be stubborn in his position for the first time after the N-deal

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