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FDI in Retail - Will really affect the farmers of India?

For

- Farmers might have to shut down their farms due to corporatization of the farming sector.

- It has divided India’s social, political and trading classes. It works on the “divide and rule” concept.

- It would mean depreciation of Indian money which will have a negative impact on the economy.

- The retailers will have an enormous control over their suppliers and indirectly affecting the farmers.

- This kind of structure would result in reduced farm prices and thus, closure of farms.

- It will have disastrous consequences on the Indian farmers as buyers will have total control over the sellers according to this policy.

- FDI will let some major players emerge in the retail segment. Big retail outlets will enjoy monopoly in selling and in buying as well. This means that the poor farmers will not have much optiona to sell their crop in the market causing them to lower their selling price and shrink the margins.

Against

- It will be profitable to the farmers as middlemen will give them a better price for their goods.

- Farmers will get an opportunity to supply their produce to the big chains directly rather than going through intermediate brokers.

- The induction of the foreign investors will definitely help the small traders i.e. the farmers.

- It will deepen the economic cooperation between India and US.

- Agricultural products will form a very small percentage of the products these retail outlets would sell. The majority of products will be the finished goods. Snce these retail chains will source these products from China and other countries, more than farmers this will affect our local industries.

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