GD-FDI

[Shifa S]

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 option to sell their crop in the market causing them to lower their selling price and shrink the margins. FDI as a whole-If competition increases it will certainly help the customers to get low price product. Products from IKEA are of very high quality. They make furniture and they keep low price also because they use steel instead of wood. Many such brands are there, who wants to enter India, and can offer low price products without compromising the quality. Supply chain management of Wall Mart is known to be best among the industry. They take agricultural products directly from farmers, so middle agent. Farmers will get the right price directly from Wall Mart. FDI will also provide employment. Yesterday Government has allowed 100% FDI for telecom and single brand products like IKEA and Apple. Now as these foreigner companies are going to open their stores or service centers across India, they will provide employment. 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. --

shifa