This question....someone asked me, I guess, because I have been long in the business of retailing. But not being wise enough, I could not answer readily. But i continued to think deeply, and still do.
As long as I can remember, I have wondered if this can happen. India is too diverse for just one thing to transform it. But anything is a start. Transformation is too big a word I guess; "make a difference" is better.
Why not then start with the largest section of the country, the rural, 75% of this nation lives there? I have spent time, a little time, with the farmers in rural India to know how they struggle from crop to crop whether, it is aqua culture, horticulture or Agriculture
I have seen that they have very basic and uncomplicated needs. I refer to those farmers who are the vast majority, holding 1 to 4 acres of land.
They need:
1) Guaranteed off-take of whatever they produce.
2) Recover their cost of production-which in most cases as they articulate
it covers seed, manure, pesticides, labour, and sustenance.
3) Guaranteed payment in a reasonable time frame.
How can things get better? Where is the scope?
Well consider this to your surprise - Tomatoes sell at Rs. 29 on the pavement in Salt Lake in Kolkata, the farm gate price around Bangalore is Rs. 3 ! How much intelligence is required to make a difference to the farmer and the consumer at the same time...separated by 2k Km? Not much! But the will? And competence? And How? And Who?
Are we waiting for a Gandhi to arrive to tell us that it is possible or for someone else to say "yes we can" ?
Some, ONE retailer 4 years ago articulated that he would fly aircrafts from one end of the country to the other to arbitrage the costs and price to the benefit of the consumer and producer and everyone said ... "here he goes again, let see how he fails...".
Well I have always hoped that I could be part of that "difference making" to albeit a few. That would be an achievement. I just returned from visiting a part of Maharashtra, and met a farmer his name is Anil, who produces Coriander, brought 80 kg on his bike. On being asked, he said all he needs is the 3 things I have stated above. Here is his Photograph.
There is no dearth of technology or for that matter money, in the system. What the big picture lacks is extensive selling outlets that will reach his coriander in a fresh condition, with minimum wastage, directly to the consumer. We don't have to get emotional about the farmer; there are enough people with much time on their hands to do that. We have to get practical and Pragmatic.
As long as I can remember, I have wondered if this can happen. India is too diverse for just one thing to transform it. But anything is a start. Transformation is too big a word I guess; "make a difference" is better.
Why not then start with the largest section of the country, the rural, 75% of this nation lives there? I have spent time, a little time, with the farmers in rural India to know how they struggle from crop to crop whether, it is aqua culture, horticulture or Agriculture
I have seen that they have very basic and uncomplicated needs. I refer to those farmers who are the vast majority, holding 1 to 4 acres of land.
They need:
1) Guaranteed off-take of whatever they produce.
2) Recover their cost of production-which in most cases as they articulate
it covers seed, manure, pesticides, labour, and sustenance.
3) Guaranteed payment in a reasonable time frame.
How can things get better? Where is the scope?
Well consider this to your surprise - Tomatoes sell at Rs. 29 on the pavement in Salt Lake in Kolkata, the farm gate price around Bangalore is Rs. 3 ! How much intelligence is required to make a difference to the farmer and the consumer at the same time...separated by 2k Km? Not much! But the will? And competence? And How? And Who?
Are we waiting for a Gandhi to arrive to tell us that it is possible or for someone else to say "yes we can" ?
Some, ONE retailer 4 years ago articulated that he would fly aircrafts from one end of the country to the other to arbitrage the costs and price to the benefit of the consumer and producer and everyone said ... "here he goes again, let see how he fails...".
Well I have always hoped that I could be part of that "difference making" to albeit a few. That would be an achievement. I just returned from visiting a part of Maharashtra, and met a farmer his name is Anil, who produces Coriander, brought 80 kg on his bike. On being asked, he said all he needs is the 3 things I have stated above. Here is his Photograph.
There is no dearth of technology or for that matter money, in the system. What the big picture lacks is extensive selling outlets that will reach his coriander in a fresh condition, with minimum wastage, directly to the consumer. We don't have to get emotional about the farmer; there are enough people with much time on their hands to do that. We have to get practical and Pragmatic.
Great to see this blog, Radha..
ReplyDeleteFarmers, surely, are one major stakeholder in this whole evolution/revolution of organized retail as we call it here. And kudos to you for incorporating this social perspective to what is considered a very tough business to manage.
I am equally fascinated by the opps provided to so many sales folks at the store level (who could be typically undergraduates and graduates at best). These folks, if not provided this option, could have ended up in sectors where either there is huge exploitation or the growth opps are limited. And the very real possibilities of falling into drugs/crime etc..
At the end of the day, some amount of disposable income and dignity of labour is what 80% of our country desire, and Retail undoubtedly has been a catalyst to that process.
I foresee the Logistics industry (in India) also going thru similar trends in the coming years. Especially the Truck Drivers. They need to acquire the dignity and prosperity associated with a Fedex/UPS delivery person. And we will get there for sure !!!
Keep 'em coming.
Siva
Dear Siva. Agree with you totally. I think in the next 5 years Logistics is going to change beyond recognition, or rather it should. with GST coming, long haul trucking will become common. Your industry can be a huge enabler to creating dignity as you you say, as well.
ReplyDeleteWelcome to the blogging community!!!
ReplyDeleteDear Radha,
ReplyDeleteI totally agree and I am totally engaged on your views.
I believe success can be achieved through 2 routes:
1. Manufacturers / Brands have to also play a vital role, and have to embark on a long term journey to transform things.
2. Logistics / Transport Industry will not only go in for a major transformation but more importantly, will play probably the most critical role in the process of enabling you & similar organised trade players (if any) who want to achieve business objectives but with an intent of social development as well.
Upon reading your article, I was pursuaded to think that I should do my part in this process change, but have no idea as to how I can contribute.
Look forward to more such articles, it was great reading.
Kind Regards
Zaheer
Hi Radha,
ReplyDeleteCongratulations on your new Blog. I just read your recent post..."Can Indian Retail Transform India"...very interesting and thought provoking.
I agree with you entirely that the word "Transformation" is too big and sometimes too commonly thrown around. True transformation does not just happen by "flicking a switch" and having a magic solution. It is really the result of numerous initiatives, enhancements and innovations that all link to result in significant and lasting change.
Look at the "transformation" of the humble wheel...was once made of solid stone, then changed to solid wood, then to a wooden rim with wooden spokes, then to a solid rubber rim with wire spokes, then to inflatable rubber rims with graphite spokes...whats next.
My point is that transformation isn't a set point in time with one defining initiative, but it's a journey and a combination of multiple initiatives and changes all linked.
From my perspective, a long way away in Australia, I believe Indian retail can be the catalyst for change and as you say "make a difference". The evloution of Indian retail will no doudt rely on changes and improvements to infrastructure, roads, rail, transport, logistics, supply chain, construction etc etc. This will not only support retail, but will benefit India as a whole.
The greater and definitely the more difficult changes that need to occur will be the mindset of people not wanting to change from how they always done things. Small farmers can't keep doing things as they always have...they will ultimately need to change and work with modern retailers / wholesalers etc. The challenge for the change leaders (the modern retailers) is to "bring the farmers along the journey with them" and it's their responsibilty to do so. They need to communicate the vision ahead, educated the farmers, address their fears and ensure that the farmers can also benefit from the change...this will take time, commitment and perseverance.
Interestingly, in Australia we also have frequent media coverage regarding the large difference between farm gate prices and supermarket prices.
Anyhow, stay well and I look forward to your next post.
Regards,
Greg
Dear Zaheer. Thanks for your comments. You work for Mars, and this as a company lives on the 5 great principles, and inclusive decisions is one of them. So you just need to live the values of your comapny and I am sure are doing this.
ReplyDeleteGreg. Great comments.Indian Infrastructure development is well on its way, to transformation, roads that greatly benefit long-haul quick trasportation.But do share how Australian farmers and retailers work together.