SuperMarkets. Are They Really good For Agri?

(My Personal Views about Retail Chain....)

Friends,

This article is totally different from what I usually write on my blog….. This doesn’t have any recommendation nor will I discuss any stock here in this…… It comes from my inner-self to write something on SuperMarkets, like Wal-Mart, Big Bazaar…. I agree that I may be writing only in opposition of this culture, there may be positive aspects too…. But when I look at agriculture sector it give me immense pain ….. pain about how these markets are destroying farmers and their business……

This is very tough to write against a good businessman….. I believe what Kishore Biyani is Doing is totally not good… not favourable for india’s agriculture… Mr Sunit Mittal is shaking hands with Walmart and it is planning to enter in india in retail too… Walmart is biggest retail chain store…. I know that…. But in long term it will destroy our farmers earning……

Today there are sayings that Retail Chain boom witll give immense benefit to retail chain…. But we should check history of impact that has been imposed by retain chain on farmers of different country…. This is a very new concept for Indians and it is obvious everyone will like it due to facility to get each single thing under one roof…. But one has to think twice……

This article is not fully written by me… I have copied statistics and lot of numeric data from other sources as well… but I have tried to consolidate it here well..

The fact is that it will destroy the Indian farmers… that will be the beginning of the end of farming era in india…. This has happened in America(USA)…………. Once big retail chains like Walmart, Tesco and kefror has entered in USA, the farmers disappeared…… Now Today there are only 700000( Seven Lacs) of farmers are left in United States of America…, More-ever their number is now so less that from Year 2000 US government stopped counting farmers separately…. Its ridiculous…………In Europe, after the entry of big retail chain every one minute a farmer is leaving farming as his profession… the impact is much much much bigger then our imaginations…… According to a report there is a decline of 39% in income of farmers in france in Year 2009… and in year 2008 it reported a decline of 20% in income of farmers in same nation…. In Scotland Many dairy farmers left their profession due to Low Prices of dairy proeucts in Super Market Stores…… now believing that Super Markets will save India Farmers is worthless….

Despite of Mass level decline in agriculture output due to globalization of SuperMarket, our ministers are promoting high limits of FDI in Retail Space… Mr Binayi is one main man behind all this…. He want to increase FDI limits in Retail chain… If this will happen then Tesco and Walmart will rule Indian Market retail chain business…..

We need good agriculture output to increase the level of life and level of financial stability in Indian rural areas…. Lots of economist and researchers are appreciating the supermarkets idea implementation in india… But are supermarkets will prove to be a good supporter of agriculture output???? There is no evidence of any benefit provided by these super markets to Indian agculture… in fact they have destroyed agriculture in every aspects…….

India started opening doors for retail global players in year 2006.. from that year can anybody tell me any benefit that has been provided to Poor Farmers (Gareeb Kisaan) by these so called global retail chain???? I think nobody can answer this…. Simply nobody….. Anybody can answers this???????

It has been said that Supermarkets will remove mediaters and will provide high price for agri products to direct farmers…. But this has not been done……… nothing good has been done so far… nowhere in world…. I would like my readers to lookout statistics about this

Brazil, Urugvey, Argentina…. in these Latin America Countries supermarkets has forced many farmers to leave farming as their profession………….this is real.. this is not a fake statement.... if somebody wants then i can also provide the links on the various articles...

If Super Markets has really favoured Farming and has done good for farmers then why US is giving money to its farmers…… though largest supermarket chain is from US only so it should have benefitted US farmers already…. But it isn’t?

Shopping at supermarkets is destroying British agriculture and ruining the countryside. 60-70% of all food now passes through four companies; Tesco, Sainsbury, Safeway and Asda. This control over the food chain allows supermarkets to determine the price they pay to farmers, with farmers forced to take that price due to there being no other buyer left in the market place.Big farmers are getting bigger to survive while small farmers are going bust, leading to farming monoculture and unemployment....

Shopping at supermarkets damages local communities and undermines local economies
People only buy a set quantity of food, so if they buy it in a supermarket, they won't buy it in local shops as well. That puts village shops and high street stores out of business. Every supermarket that opens results in a net loss of 200-300 jobs, as a whole network of local shops and their suppliers is destroyed...

Supermarkets are owned by people who don't live locally, or even in the same country. The money you spend there does not go back into the local economy, whereas money spent in independent shops tends to stay in the local economy. Because the supermarket HQ and bosses live elsewhere, the money goes elsewhere, into the bank accounts of distant shareholders. Even the plastic bags are made en masse at central locations, sometimes in totally different countries...

One of the most shocking forms of exploitation is that farmers are frequently paid less than the cost of production for their goods. The UK dairy industry, for example, has been heavily hit by supermarkets who have used the oversupply of milk to their own advantage. It costs a small dairy farmer anything from 18p to 22p to produce a litre of milk. Until the Milk Marketing Board was abolished in 1994, they were being paid 24p per litre. Farmers are currently being paid 19p per litre, for what sells in the supermarket for 72.2p...... WOW... Supermarkets are buying in 19p and selling in 72.2p.. isnt it amazing.... this is a pure exploitation of a farmer

The supermarkets and big processors are increasing their share of the profit margin by squeezing the whole supply chain, and the farmers at the end of the chain are in the weakest position. Agricultural subsidies essentially go straight into supermarket profits...

The major setback. .. Climate change that nobody is observing...

Supermarket refrigeration is making a worrying contribution to climate change. About one quarter of the carbon footprint of supermarkets comes from the cooling gases used in their refrigeration systems – and that’s before take account of energy for powering equipment. The main cooling gases used by supermarkets – hydrofluorocarbons (HFC) are many thousands of
times more powerful than carbon dioxide (CO2) in terms of their global warming impact. In response to world concern about the destruction of the ozone layer, legislation was introduced to phase out the use of chlorofluorocarbons (CFCs) and other ozone destroying gases that were then widely used in refrigeration and air conditioning. HFCs were accepted as replacements because they do not destroy the ozone layer. However, their impact on global warming was not taken into account...

Many Peoples think that they are paying very less money to buy products... they think supermarkets as cheap stores.... bit real fact is well far from understanding of a common man

Cheap food is a big big myth. The consumer pays three times: ONCE the shop, TWICE through direct subsidies to farmers, and FINALLY indirectly in taxes cleaning up the mess left by industrial agriculture and subsidising transport infrastructure….. It has, for example, cost the government over a billion dollars to install the equipment necessary to remove nitrates and pesticides from water worldwide…

The current pattern of supermarket consolidation will not help matters. At a recent seminar help by the Grocer, ex-CEO of Somerfield, David Simon, claimed that the proposed takeover of Safeway will be a 'killing ground' for weak brand and private-label suppliers, and hence the farmers who supply them. They will face crippling reductions in margins and the possibility of losing their entire business...

There is lot lot more to write on supermarkets……

Personally I don’t like the evolution of supermarkets... i dont like big walmart, tesco and India Ones like Big Bazaar, Pantaloon, More, Aditya Birla Stores, Big Apples, etc etc......

My Views Can differ from others in this regard.....