Today Sharad Pawar argued that by bringing FDI in retail they are helping the farmers but simple economics does not buy his stand.
Say Today there are 100 Wholesalers (Buyers) and 100 farmers (Seller) add to this 8 foreign retailers hence there are 100 sellers and 108 buyers. Now say a product is sold at Rs.10 now this 8 buyers shall offer Rs.15 and hence this 100 sellers would obviously like to sell their product @ Rs.15 where our wholesaler although capable of purchasing @15 but compel not to do as they shall sell the product @Rs 17 to retailer who in turn shall sell the product to end consumer @ 19 whereas the big retailer shall sell the product directly to end consumer @ Rs.17 and hence both the farmer and end consumer are benefitted This is short term. Now say after 10 years this wholesaler shall die out and now in market economy there are 100 sellers (farmers) and 8 buyers (forign FDI now they shall start the bargain and ask farmers to sell @ Rs.8 and sell their product @ Rs.17 or Rs.19 the price they like (Monopolistic situation in both the market) Hence in long term it is suicidal for both the farmers , Indian retailers and end consumers and remember Chinese product are still at our doorstep awaiting entry thru the Wal-Mart and like.
Please don’t allow FDI in retail.Vote out Congress from UP in near election and from centre in next loksabha election
Please forward this message if you agree with this logic.
Re: FDI so dangerous
by cooldrango on Nov 28, 2011 10:46 AM
I agree with you. I was in US around four years back and wanted to get gifts for kids in India. Visited almost all super market chains and could not get a single product with MADE IN USA TAG except for Ketchup and almonds.No wonder US is in such a state today.
Re: FDI so dangerous
by cooldrango on Nov 28, 2011 10:46 AM
I agree with you. I was in US around four years back and wanted to get gifts for kids in India. Visited almost all super market chains and could not get a single product with MADE IN USA TAG except for Ketchup and almonds.No wonder US is in such a state today.
Today Sharad Pawar argued that by bringing FDI in retail they are helping the farmers but simple economics does not buy his stand.
Say Today there are 100 Wholesalers (Buyers) and 100 farmers (Seller) add to this 8 foreign retailers hence there are 100 sellers and 108 buyers. Now say a product is sold at Rs.10 now this 8 buyers shall offer Rs.15 and hence this 100 sellers would obviously like to sell their product @ Rs.15 where our wholesaler although capable of purchasing @15 but compel not to do as they shall sell the product @Rs 17 to retailer who in turn shall sell the product to end consumer @ 19 whereas the big retailer shall sell the product directly to end consumer @ Rs.17 and hence both the farmer and end consumer are benefitted This is short term. Now say after 10 years this wholesaler shall die out and now in market economy there are 100 sellers (farmers) and 8 buyers (forign FDI now they shall start the bargain and ask farmers to sell @ Rs.8 and sell their product @ Rs.17 or Rs.19 the price they like (Monopolistic situation in both the market) Hence in long term it is suicidal for both the farmers , Indian retailers and end consumers and remember Chinese product are still at our doorstep awaiting entry thru the Wal-Mart and like.
Please don’t allow FDI in retail.Vote out Congress from UP in near election and from centre in next loksabha election
Please forward this message if you agree with this logic.
