Click to play videoLudhiana: In the midst of the political cross fire over the impact of retail foreign direct investment (FDI) on small traders, the question is will FDI in retail benefit farmers who would be the back bone for the supply chain to hyper markets.
CNN-IBN traveled across villages in Punjab where Bharti Wal-Mart has been involved in sourcing directly from farmers.
Far from the raging retail debate, about 130 farmers from seven villages at Malerkotla tehsil in Punjab have been supplying their produce to Bharti Wal-Mart for more than two years now.
Farm products are picked up daily and directly and transactions are recorded in a passport given to every farmer. About 30 tonne of vegetables are picked up everyday. Earlier, farmers were at the mercy of middlemen at the Mandi.
"Whatever vegetables we take to Mandi, we get about Rs 10 bonus on them. Then those vegetables are taken to retail market for which we don't have to pay anything," said Sunny, a farmer.
Farmers who lose out to middlemen and absence of weather control storage also get some tips on crop planning and management. Once products are sourced and processed, it comes to one of the sprawling shop floor. Bharti Wal-Mart has about 14 such floors across the country.
However, there are some who are apprehensive that good times may not last for long.
"Big companies coming in will mean big clout in terms of procurement and big clout has been historically used to push prices downwards," said Gaurav Sahai, a farmer.
Garment makers of Punjab are also looking at the brighter side of FDI in retail and the coming in of Wal-Mart and other giants.
"We will benefit if FDI in retail is in as new outlets will open up and according to the rules they will have to source 30 per cent from people like us," said Ajit Lakra, a garment manufacturer from Ludhiana.
FDI in retail has already made its presence felt in Punjab. For now industrialists say it is a positive move, traders say it is negative and farmers are divided. It is precisely this uncertainty that is fuelling the controversy over FDI in retail in India.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)
More on IBNLive Right Now
TOP NEWS
MOST SHARED
PHOTOGALLERY
