GLOBAL RETAIL GIANTS-WILL THEY RUSH TO INDIA IN A HORDE?

The grand statement by the Commerce Minister of GOI extolling the virtues of opening the retail sector to foreign direct investment through a series of glittering advertisements in almost all news papers to day gives a rosy picture to the citizens about the advantages of major global retail giants coming to India. However a close look at the ground reality will tell a different story.There appears to be a goof up regarding the number of towns with more than a million population eligible for setting up shop by the MNC retail companies and now it turns out that in stead of 53 cities mentioned by the minister, only 46 urban entities exist in the country that are eligible to attract FDI! Besides 25 of the above are under the administrative control of non-UPA governments which are hostile to the new policy leaving only 21 urban entities available to foreign companies to invest. Here is a take on this interesting development for which GOI has to blame itself!

"With Tamil Nadu chief minister J Jayalalitha raising the red flag against FDI in multi-brand retail, nearly half of the 53 cities may slam the doors on global chains. According to the 2011 data on the Census of India website, there are 46 cities that had a population of 10 lakh, of which 25 are unlikely to allow the likes of Walmart, Carrefour andTesco to open stores since the political leadership in these states have gone on the offensive against the government's move to permit global retailers to set up shop in the country. The statement issued by the government after the Cabinet meeting on Thursday had said 53 cities would benefit from the new policy. Apart from Jayalalitha, the BJP-ruled states,Uttar Pradesh chief minister Mayawati, West Bengal CM Mamata Banerjee and Bihar CMNitish Kumar have made public their stand against the latest FDI liberalization move from the UPA, which is keen to shake off the perception of policy paralysis. Among the BJP-governed ones, Gujarat chief minister Narendra Modi has welcomed the opening up. Although in the past, he has been autonomous of the leadership, he is unlikely to deviate from the party's stand. That leaves the foreign retailers to tap into Congress-ruled states such as Maharashtra, Rajasthan, Haryana and Andhra Pradesh apart from Punjab, where BJP ally Shiromani Akali Dal has supported the move, and Orissa". 

Whether the Central Government will be able to survive with some of its coalition partners against the new FDI policy and whether the new policy will be implemented eventually cannot be predicted at this juncture. Assuming that the doors are opened for retail FDI, another million dollar question is how many major players will actually enter the country against the pre-conditions imposed and restricted areas of operation available to them. Any how the road ahead for the foreign companies may not be as smooth as they hope for and it may take years, if not decades, before they can establish any sizable presence on Indian soil!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

FARMERS' MARKET VS VENDORS" MARKET-A POLICY DILEMMA

One of the most visible changes taking place in some of the wealthy countries is the phenomenal growth of farmers' markets which are supposed to offer fresh produce directly from the farmers to the consumers in the neighborhood communities. The major factor for the large scale patronage of these markets by the consumers is the progressively ebbing confidence on the ability of organized retailing sector to provide products in fresh condition with assured quality and safety as expected by the consumers. Not that all farmers' markets are able to satisfy the consumer but majority of them are well organized and deliver products to the full satisfaction of the buyers. Generally the number of farmers' markets in an urban community is limited forcing many to travel quite some distance to reach them but with transportation never a constraint for citizens in wealthy countries, those who are particular to buy really fresh produce do nor mind this minor inconvenience. Many farmers' markets are organized in places and facilities provided by the civic authorities and sanitary conditions are overseen by them. Having convinced about the relevance of farmers' markets, there is a clamor for setting up more such centers in cities that will spare the customers the need to travel through busy city streets. Here is a view point from a citizen in Canada regarding the importance of farmers' market to the urban community.

"First off, the Calgary Farmers' Market is not a true farmers' market. Only about half of the vendors are farmers. It is as much a food court and craft market as a true farmers' market. I also don't buy the argument that the city should be supporting a farmers' market because it connects consumers with producers and will lead to a stronger sustainable food policy. It's a nice, altruistic idea, but I don't think the city should be in the behaviour modification business. As Jeremy Klaszus recently pointed out in the Calgary Herald, other cities subsidize their major markets. But in Calgary's case, if we were to do that, we would have to subsidize not only the Calgary Farmers' Market, but also the Crossroads Market and Kingsland Market because they have a similar business model. I recall one letter to the editor in the Herald asking about why there's all the media fuss over the Calgary Farmers' Market, as it's not the city's only farmer's market — good point. Rather than imitate what other cities are currently doing or looking to the past, I say let's look to the future and develop a new Calgary model for farmers' markets. I propose that instead of a major downtown market that requires Calgarians to drive across town to get to it, we develop more modest, year-round farmer/food producer-only markets in each quadrant of the city (all three current major farmer's markets are currently in the south)".

Whether one calls it farmers' market or by any other name the concept is very sound and world over such markets must come up to link the grower to the consumer. Of course there will be stiff resistance from whole sale distributors and large retailing giants as their business may be affected to some extent. In a country like India there are scattered road side vending practice in almost all cities while some rudimentary facilities are built in some towns and cities for selling fresh produce. Unfortunately those who sell the produce are not real farmers but vendors who get their materials from the government controlled marketing yards. What is required is a genuine farmers' market where individual farmers are allowed to bring their produce directly to the customers. Archaic laws which come in the way of implementing such progressive new ideas must be scrapped. Farmers' markets, functionally designed with all necessary facilities must be built in almost all townships in the country for the benefit of both farmers as well as the citizens of the country.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

GM FOODS-THEIR OMNIPOTENCE IN THE US

Genetically modified foods are increasingly getting into the main stream food processing field, especially in a country like the US where most of the manufactured foods in the retail shelves contain significant levels of ingredients derived from GM food sources. As there is no mandatory labeling to inform the consumer regarding the presence of GM ingredients, most of those buying these foods are blissfully unaware of what they are really eating. Thanks to persistent efforts by consumer activist organizations, there appears to be increasing awareness about the downside of GM foods in spite of claims by the GM lobby that these foods are absolutely safe to consume. Here is a commentary on the present status of GM foods in the US which tells its story.

"Little-known facts about GMOs: GMOs are now present in 75 to 80 percent of conventional processed food in the U.S., according to the Grocery Manufacturers Association. 58 percent of Americans are unfamiliar with the issue of GMOs in food, according to a 2006 Pew Initiative on Food and Biotechnology study. "Non-GMO" is the fastest-growing health and wellness claim on store-brand food labels, up 67 percent in 2009, according to Nielsen Co. 80 percent of Whole Foods Market shoppers surveyed said they would seek out non-GMO products with clear labeling, and would be willing to pay more for these products. The FDA does not require food with GMOs to be labeled as such, so avoiding them is hard to do. GMOs are banned or significantly restricted in 30 other countries around the world, including Australia, Japan and all of the nations in the European Union. Unfortunately, due to cross-contamination and pollen drift, very few products in the U.S. are completely free of GMOs. The Non-GMO Project standard is a process-based standard that avoids the intentional use of GMO ingredients by providing suppliers with procedures and best practices for minimizing the presence of GMO ingredients".

It is most unfortunate that in a democratic country like the US, the citizens are denied their basic right to know about the food they are eating, thanks to the mighty clout enjoyed by the GM technology companies that produce GM seeds and the food processing industry on the government. One is reminded of the fate of irradiation technology which is still in the limbo because of the labeling controversy. It is well established scientifically that irradiation technology is safe beyond any shadow of doubt and there does not appear to be any logic in insisting on inclusion of the words "Irradiated Foods" on the label. If such a logic is extended on all food packets the type of technology used will have to be declared on the label. In contrast GM technology has yet to reach a stage where there is unanimity regarding the safety of foods derived from GM sources. According to some observers, there exists a connection between the emergence of GM foods in the market and the rampaging health afflictions Americans are experiencing to day. One never knows!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com