ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Implications of FDI in Food Supermarkets

This survey of the global and Indian experience with retail supermarkets, against the backdrop of a recent official paper on foreign investment in retail, highlights malpractices due to buying power, employment loss in the value chain, and an unwillingness to share the risk of the growers. In this context, it would be prudent to slow down supermarket expansion by using mechanisms such as zoning, business licences and trading restrictions. Measures to ensure smooth functioning of the contract farming system should include strengthening competition laws to limit buying power, providing legal protection to contract growers and encouraging farmer cooperatives and producer groups.



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