Walmart Takeover of US, Want it for India?

Comments

2 responses to “Walmart Takeover of US, Want it for India?”

1. 

   18 Aug 2012

   goks

   
   

   Sir, of all the topics that I have read from yours this is the only one I think I may have some difference of opinion. I am not sure what your opinion is really about Walmart because you have not explicitly mentioned that. When you say, “What about small retailers and producers”, am assuming you are not in favor of they coming to India. But, I have lived in the US for more than 4 years. We have travelled length and breadth of the country. The sheer convenience of having a Walmart around, cannot be expressed in words. It has to be felt. You can find almost anything out there and be rest assured it will be the cheapest for the same branded product. The way they have redefined logistics, Just in time, ease of access is unbelievable. If we can have the BigBazars right now in India why not the Walmart. if the small traders have not been affected now, why would they get affected when Walmart comes in? Afterall it is the same concept… Believe me, the farmers will benefit greatly if such retailers come in.. The procurement is at a good price, direct and get transported at the cost of the company. I am not denying that there may be some hits here and there and a proper system has to be worked out to bring them to India. But it has to be for everyone’s good.

   Loading…

   Reply
   1. 

      20 Aug 2012

      ramanan50

      
      

      No doubt there is convenience.
      When a big organisation starts entering basic operations, the greed takes the better place as against the survival of small farmers.
      Initially ,if you notice, the Retail Chains keep the price low for the consumers and also pay the farmers a high price to the extent of tying up the farmers’ entire production.
      Couple of big companies form a Cartel and then they start squeezing the Farmers out.
      The farm holding in India, as against the US, is very small per head, not even an acre in most cases.
      We might wonder that the price benefit they get by paying the farmer is being passed on to us, the Consumers.
      No.
      The Company’s profit margins increases, that’s all.
      Let me narrate an example.
      I buy from the ‘Big Bazaar ‘Retail Chain in Bangalore.( I personally visit),
      I find that the price of the Branded items are lower than the marked MRP, yet you pay less than this.
      They earn more on quantity discounts.
      We are deluded into believing we get at a cheaper price.
      But what they do is to charge exorbitantly on non branded goods like cereals, small plastic items,Crockery and you name it they do it.
      What I do is to buy the branded goods at these stores and buy the non branded at our regular Kirana shops.
      The result is I am looked upon as a freak in the Shop!
      Now, coming to the issue on hand, we seem to be thinking on our convenience alone , forgetting the problems of the farmers.
      As it is the cost producing paddy is uneconomical to the extent that my cousin brother who has huge tracts of lands in Tiruchi belt sells at the rate of one/two acres per year to offset losses.
      Reason ,the Building industry offers 300 to 400 rupees per day for labourers.
      Workers demand the same wage from Paddy cultivation and this becomes uneconomical
      Many small small paddy field holders sell their land and migrate to Cities like Chennai/Bangalore because thy earn better in building jobs.
      If people start selling away lands, who will produce Rice?
      We have to import.
      This is exactly what the US wants.

      Loading…

      Reply