Wednesday, March 29, 2006

Food processing: Big corporates romancing with Rural India

According to this news:
There are big plans being drawn up to link India’s farms to the world markets by companies, particularly those venturing into the domestic retail sector like Reliance, Godrej, Field Fresh (Sunil Mittal’s 50:50 joint venture with Rothschild), Snowman Frozen Food, a joint venture with the Mitsubishi group, Amalgam foods and HLL, Radhakrishna Group, DCM Sriram, Gufic Labs, Jain Irrigation, Tata Group, Godrej, Dabur, Blue Star and Voltas, among others.

Tax incentives being given by the government for food processing, including income tax and excise holidays for industries involved in the processing of fruits and vegetables have led to interest in the sector. These companies are establishing direct contact with farmers to source their requirements, by eliminating middlemen, and cutting down costs to offer higher yields to farmers.
My question is : will this move make sure that farmer gets benifited more than now?? Hope so.


villageboy said...

I don't think they are choosing for the real benifit of the farmers. They all corporates do anything for thier self benifits.

But may be, the residula may be given out the farmers, which in the present condition might be better than the best they might get in the market.

But it is the co-operative sector that should be improved, its the farmers who have to manage the markets, and not the corporates. For which the govt. should have a level playing role, it should facilitate and encourage more and more co-op sectors. First Milk sector how successful it is!

Na.Su.Krishnan said...

Travel towards the "best" should go via the "better".Corporates do add value to the system in Vilages.

Yes! a better way is the co-operative way. Educated like minded people may form a co-operation which stands as a bridge between Corporates & Villages.This will eradicate the fear of possible exploitation by corporate power.

chetan said...

Exploitation is inevitable.Corporates will turn the farmers into daily wage labourers.The best way would be to do the same through (unselfish)co-operatives.