A recent survey from a Delhi-based think tank has revealed that Indian consumers prefer to buy their fresh fruit and vegetables from local stores and vendors as opposed to organised retail stores.
Based on inputs from 1001 respondents, the survey, which is part of a larger study on the country’s consumption pattern of fruits and vegetables to be released by ICRIER today 4 February, makes a case for allowing FDI in multi-brand retail of food and grocery.
“Our survey indicates that if the government allows FDI in multi-brand retail of food and grocery, it would not affect local stores and vendors as consumers prefer to source these items from them. On the other hand, FDI in the sector could give a big boost to food processing,” Arpita Mukherjee, Professor, ICRIER, told BusinessLine.
As per the survey, more than half of the respondents (534) preferred buying fruits and vegetables from the local market. A large number (192) bought from push carts, while around 100 respondents sourced the items from the wholesale market.
Of the 1001 respondents, only about 150 respondents said that they bought fruits and vegetables from the organised market such as Big Bazaar.
The respondents were interviewed across five cities.
The NDA government has so far not entertained proposals for FDI in multi-brand retail (despite the rules allowing 51 per cent FDI in the sector) because of concerns over the livelihood of thousands of small retailers and vendors. The government is, however, now considering opening up the sector to foreign investors, but is looking at excluding certain areas like food and grocery.
Building a case for allowing FDI in multi-brand retail of food, the study states that organised retailers and manufacturers globally not only help to set up the supply chain for fruits and vegetables, they also train farmers in best farm practices.
Source: thehindubusinessline.com
