Best Buy: Demand for quality produce has increased recently

Come and pick up any fresh fruit, vegetable, or agro-product of your choice at competitive rates, have an enjoyable time shopping in an air-conditioned market and experience the revolutionary field of agriculture retail, where the mandi is at your doorstep. Retail companies pick up produce from the farmers, store them in warehouses and transport them directly to retail outlets, thus eliminating the need for middlemen.

The concept of agriculture retail is heralding the country’s latest green revolution. Fourteen states, including Maharashtra, Punjab, Andhra Pradesh and Rajasthan amended the Agricultural Produce Marketing Committee (APMC) Act this year, which allows farmers to sell their produce directly to buyers offering them the best price. Sectors such as horticulture, floriculture, development of seeds, animal husbandry, pisciculture, the cultivation of vegetables and mushroom, and services related to agriculture and allied sectors are now open to 100 per cent foreign direct investment.

What do I have to do?

The emergence of organised retailing in recent years and the creation of quality retail space have led to an increased demand for quality produce and for investments in supply chain infrastructure by private players. Agriculture retailers partner with farmers, logistics operators and traders to enhance their purchasing power. Supply chains and logistics, and information technology infrastructure also support agriculture retail outlets.

As large retailers, Indian and global, enter the food retailing business, there will be huge investments in supply chain logistics, processing, cold chains and contract farming, which will eliminate wastage, improve quality and farmers’ margins, and provide world class produce at affordable prices to consumers.

Companies such as ITC, Mahindra and Bharti are assisting farmers to gain an awareness of better produce and market practices.

What should I study?

You could do your MBA in retail management or agribusiness/ food management. A graduate degree in agriculture will give you an edge.

What next?

The middle class of the world’s second most populous nation is growing wealthier and seeks greater diversity in food products. Since the average Indian household spends about 55 per cent of its income on food (a much higher share than in developed countries), changes in food prices resulting from new domestic and trade policies are also driving changes in food demand patterns. Export potential and a rapidly growing domestic demand for reliable produce from new supermarket chains is driving change. With 77 per cent of India’s population relying on agriculture for a living, improved efficiency and new markets can benefit a large number of people. Indian producers are responding to the rising demand with some success.

Some recent developments in the area of agriculture retail are:

Reliance Retail will establish links with farms on several thousand acres in Punjab, West Bengal and Maharashtra with a multi-year investment of $5.6 billion in agriculture and retail.

FieldFresh, aiming to become India’s first large-scale exporter of produce, will annually pay farmers over $ 30,000 to lease land for vegetables, hire tractors and to pay their workers.

PepsiCo has introduced farmers to high-yielding basmati rice, mangoes, potatoes, chillies, peanuts and barley for its Frito-Lay snacks, apart from its five-year programme with the Punjab government to provide several hundred farmers with four million sweet orange trees for its Tropicana juices by 2008.

US-based home delivery and logistics company, Specialised Transportation Inc., will enter the Indian market through a strategic alliance with Patel Retail.

Wal-Mart has announced its plans for India in partnership with Bharti.

The most prominent retail group started in recent years is the Future Group of Kishore Biyani, which runs the popular Big Bazaar and Food Bazaar chains.

where to study

• Mudra Institute of Communication, Ahmedabad.
• K.J. Somaiya Institute of Management Studies and Research, Mumbai.
• Chaudhary Charan Singh National Institute of Agricultural Marketing, Jaipur.
• Indian Institute of Management, Ahmedabad.
• Indian Retail School, New Delhi.