Saturday, July 18, 2009

FDI restrictions to remain - Scindia

Scindia in a written reply in the Rajya Sabha, said "The government also fully recognizes the need to ensure that small retailers are not adversely hit by the growing organized retail and that there is no adverse effect on employment"

Scindia enclosed an ICRIER study to back his statement, which pegged the retail trade increase at 10 per cent per annum from US $10 billion in 06-07 to US$ 496 billion in 11-12.

The study nails the growth of the organised retail segment at a sizzling pace of 45-50 percent with an anticipated market share of 16 percent by 2011-12.

Interestingly, the study makes a pitch for opening up the retail trade sector as there was no grounds of employment in the unorganised retail segment being effected by the growth in the organized retail segment.

The study is also of the belief that Farmers and consumers both will benefit significantly by the farmers selling straight to the organized retail merchants.

The ICRIER report says that farmers selling direct to the organised retail merchants realizes upto 60% more profits than sellling to middlemen such as the mandi's (wholesale markets).

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