Tesco's $110m India expansion given go-ahead

TrueSpirit1

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And how are letting global retailers into the country going to get local farmers crops to market? They sell processed food. It isn't a farmers market. They will mostly likely import the vegetable isle and meat counter.

Their distribution chain is set up to move cheap crap from China, not domestic Indian products and produce. The expansion of these stores only kills your own local business to promote sweat shops and processed produce full of hormones and chemical agents from abroad.
Frankly, I do not have much data or info to analyse how much of the above is closer to reality & what percentage is rhetoric-driven. I believe, taking a subjective view & going by hearsay-driven sentiments wouldn't help our interests.

Why do you think Americans and Europeans complain about Walmart and Carrefour so much? They exploit everyone from their employees to their suppliers.
Heard enough on this front. But, they must still have enough customers & employees, isn't it ?

Is the local retailer always fair & honest towards its employees & customers ?

Think about it.
 

SilentKiller

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Right observation. Wrong solution.

All it takes is very very minor changes in the govt policy that will boost the profit to the farmers. The amount of wastage of food produce is very high and it mainly happens between the farm and the storage facilities. Secondly the govt policy restrictions cripple the farmers from getting the right price.

All it takes is around 3500 crores to build enough storage facilities for a state (or country i don't remember properly) which can store the food grains and not let it rot outside waiting for storage space before it gets to the market subjected to changing weather conditions. The govt can do it very easily but won't do it. Secondly the policy of govt to restrict export of food grains outside india despite having supplies exceeding the limitations (demand+an year's buffer)set. The extra food production can be used to get a lot of foreign exchange and that money can be used to improve agricultural facilities across the country if it's a market based govt. or use it for giving food subsidies to the poor if the govt is a socialist/populist one.

Also there is a Minimum Support Price issue without which farmers can't even cover the transportation costs of their produce and they had to dump their sweat by burning the produce. The solution is not FDI. FDI only bring in more dollars which empowers the companies to foreign companies to remove these bottle necks at a small cost and take most of the profits back to their home countries. What use is it to us. The amount of money needed to improve these conditions can be done by the govt at throw away prices instead of the stupid NREGA or Food Security bill dumping lots and lots of money. A clever govt would use the same conditions to make money and use the same to give it to their core vote bank even if one has to go by the politics of today. The current govt. is inefficient to the core to say the least. I now regret for not following through on the business plan 7 years back when i was full of risk taking. :tsk:
Well Sir you are wrong.
Reasons: MSP is already being given on cash crops and farmer is getting benefit in them. usually prices for cash crops are revised now and then, Production of cash crops and getting huge benefit from them is for large farmers, but for smaller farmers its not.
many farmers go for vegetables and other non-cash crop production as there is no MSP on them. Yes if we have MSP on them too, consumer will cry that they have got expensive, for e.g. onion will always be Rs 30/40 year long. Rainy season is when production of vegetable comes down and prices goes up but hording takes their price to Sky. but farmer gets prices below what it should be.

Well cost of building cold storage (- land price) is around 3-4 Crores, Farmers pay rent to store their produce there. Avg capacity of 4k-5k MT.
So some Districts with higher production needs 5-10 such stores in single district. which needs 200-300 crores for each district. So 3500 crore is not even enough for state like punjab and 000's of Tons is wasted in govt based mandis and storage houses.
As we don't trust govt with such big money projects, better they go into private hands, govt can make money by means of taxes.

NREGA or Food Security are good but its implementation is wrong. Lots of money gets wasted as real beneficial of these schemes never get benefit from them.

Export finished good not raw materials as one will always remain backward.
 

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