MNC's Will Capture Food Security through FDI in Retail

(Dr. krishan Bir Chaudhary)

The rural India is facing an agrarian crisis and 68% population of the country is depend on agriculture. The 85% farmers are small and marginal and having less than 2 acre of land. In India the retail sector gives employment to 40 million people. We cannot compare with China because India's priority is national interest and poor people's welfare.

When the Government cannot provide the sufficient employment to the people than why the government is destroying the self-employed sector of the Country. There are many examples in the developed countries that FDI does not benefit farmers.

For MNC's it's agri-business but for us it's way of life. The FDI in Retail is nothing but a game-plan to control the food security of the country through the contact farming system. We will lose rights on our natural resources i.e. Land, Water and Environment. After their monopoly, the farmers will dance on the tunes of these MNC's. Even in US the Wall Street Movement is opposing the development model and policies of these corporations.

They always buy Cheap and sell highest is globally known and FDI is a root for corruption as MNC's are known for lobbying by using money power to gain advantages and favors. Independent Farming and Trading are the pillars of strong India. Why the government is not ready to develop the infra-structure in the country.

The agriculture needs better marketing, better infrastructure and effective network in the country. The traditional retail culture cannot replace by the MNC's system. If the food security of the country will be controlled by these MNC's, through there patented GM seeds and inputs in agriculture sector, the farmers will be exploited. The economy of the country will be controlled by them, because food is the main currency of India

If FDI in multi-brand retail is allowed in India, then our farmers will suffer the same fate as their western counterparts. In the US, dairy farmers share in consumer's dollar has declined from 52% in 1996 to 38% in 2009. Similarly, in the UK, the share of dairy farmers declined from 56% in 1996 to 38% in 2009. The wastage of fruits and vegetables due to poor storage in India is a false argument, because data clearly proved that wastage are much less in India than developed countries. .

The more of a commodity, the large retailers buy in bulk at lower prices from agricultural producers. The studies have proved that Wal-Mart and other retail giants create a monopolistic market and the existing markets disappear. Wal-Mart's large quantity of products comes from China and has an annual turnover of 422 billion dollars in 15 countries with 2.1 million employees.

The Wal-Mart's procurement from China is the major source of its profits. The Government is not worried about Indian jobs and is more concerned for the interests of global retailers. The argument that inflation will be reduced by reducing middlemen is false because they just replace small traders with a giant trader who collects higher profits. The Hyper markets displace diversity, quality and taste.

The giant retail will not just destroy our retail and farmers but also devastate our culture and very social fabric. The study of developed nations where global retailers have their business activities reflects that farmers are not benefitted by this policy. The high level and sophisticated standardization by giant retailers lead to immense wastage for farmers produce.

The huge subsidies for farmers in developed nations show that FDI does not benefit farmers and as a result the Farmers are perishing over the globe. As far as the consumers are concerned they will be negatively affected too because as seen from the experience in other countries like Mexico, Argentina etc, the supermarkets usually sell more expensive food than other small and informal outlets.

The protests in Arab Countries and other parts of the World amply reflect the destruction of small retail stores which has resulted in mass unemployment. Why global retailers are facing resistance in their own countries? The supporters are those people who have vested interests.



(Editorial : Kisan Ki Awaaz Magazine)