Six Men, Elephant and FDI in retail….

Watching the circus on TV  for the last two days since FDI in Retail has been announced I could not but help comoparing the situation to the famous parable of the elephant and six blind men. While each has its own opinion based on what part of the elephant they are holding ( like the opinions of our learned media,business men and politicians) , no one exactly knows what the animal ( in this case quite literally ! ) looks like. For someone like me who has worked closlely with the farmers as well as in retail for a long time the picture is quite clear. We are talking two different business models here : one is based on scale and the other is based on service and convenience. If you just look around : has a single mom and pop store closed down even when you have a number of so called organized big box retailers are all around them. Within a Km radius of my place in Bangalore I have a Big bazar super centre, a More Super centre and a number of Nilgiris, MK Retail,Reliance and others but I still order from the store next to my place or go and buy it from there for day to day needs : No ques therefore quick transaction or homedelivery that gets the store to your doorstep being my simple drivers.

For farmers there is absolutely no link between FDI and what they will get for the price of their produce. They sell to the mandis governed by APMC act today or just sell their produce to anyone that gives them a better price. On what basis are people debating that farmers will be adversly effected beats me completely.Typically in all economies with dominance of organized retail farmers realize 2/3 of the retail price of their produce vs. just 1/3 or lower in economies where such a mechanism does not exist.It’s quite simple if You know that at what price the retailer is going to sell what he buys from me and if all farmers know what price their produce sells in organized retail are they fools that they willl give it up to a Wal Mart just like that ?? It is this non transpareny that kills them today.When we are buying Onions at Rs50 a Kg the farmer is still getting just 5 Rs for it , so where does the Rs. 45 go ??No one knows or those who know are crying wolf wolf !! I don’t even want to go into the efficiencies in supply chain etc which will of course add a lot o value to consumers, producers and retailers alike. I have seen Wal Mart very closely and I know that it is one of the most hoenst, forthright and efficient companies in the world. What a lot of people say about Wal Mart is mostly out of ignorance or their own selfish interest. It’s a giant that competition is afraid of and fear always brings in insecurity.

Anyways you enjoy the poem and try to figure out which of the blind men is Politicians, Media, Businessmen, shopkeepers, farmers and general public :

It was six men of Indostan

To learning much inclined,

Who went to see the Elephant(Though all of them were blind),

That each by observation

Might satisfy his mind

And so these men of Indostan

Disputed loud and long,

Each in his own opinion

Exceeding stiff and strong,

Though each was partly in the right,

And all were in the wrong!

So oft in theologic wars,

The disputants, I ween,

Rail on in utter ignorance

Of what each other mean,

And prate about an Elephant

Not one of them has seen!

For the complete version click here : http://www.wordfocus.com/word-act-blindmen.html

Let’s first see the elephant and then we can talk about it.

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