FDI in retail will be subject to a lot of discussions and scrutiny. To generalize and compare how other countries have fared and still let kirana (small shops in road corners) survive or bring about better returns to farmer is a futile exercise. The conditions in India are different. We need to clearly spell out some basic pre-conditions that have to be complied within a specified time-frame, failing which, the licensee will have to pack up and go home.
a) At least 30% of the indigenous farm produce will have to be retailed
b) Each FDI-R licensee be given the choice of seven to 10 locations where it can commence its actual retail operations
c) These operating centres will have to be supported by actual infrastructural development of warehouses, cold storage and transportation logistics in identified sources of supply at the produce points
d) The next set of new cities will be after successful performance, a minimum of 18-24 months later, with the same conditions relating to infrastructure development or by expansion of existing ones
e) The activities of the FDI-R licensee will be subject to a close check and follow-up by a regulator who will maintain a watchdog committee for keeping a track of purchase pricing to retail selling; of the actual commitments in terms of fulfilling employment growth and how these actually are benefiting the country in terms of taxes earned
f) These FDI-R licensees should not become the single largest selling point for marketing products of other countries when identical or similar products of indigenous makes are readily available.
These measures would be the first of many that one can think of as a start.
Source: www.moneylife.in
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