Farmers and Traders

You are supposed to play the role of either a farmer or a trader (intermediaries/commissioning agents/distributors). Following brief for these roles give some pointers for your role during the war game. You are free to incorporate additional information that, you feel, will add value to your arguments. Farmers It is argued that farmers, along with consumers, are going to be the prime beneficiaries of FDI in retail. Major benefits are likely to accrue due to investments in cold chain infrastructure by foreign players. This will results in better procurement process and returns for farmers. As a farmer representative you are required to bring out arguments that are critical from farmers point of view. Given FDI, you need to come up with strategies and plans that safeguard the interests of farmers. Some of the arguments made in favour of famers are as follows (non exhaustive list) a) Investment in supply chain and procurement infrastructure is likely to improve the returns on farm products. The income is likely to be substantially enhanced due to reduced losses that are currently occurring in perishable commodities.
b) It is also argued that the integrated supply chains of the organized

retailers are directly going to procure goods from the farmer thus eliminating non value adding intermediaries. This is predicted to improve the price realization of farm products. The implication of APMC act and other related regulations can also be explored.
c) New farm technologies are likely to improve yields and help farmers

upgrade and diversify the products. This is will be possible due assured uptake of products by organized retail. Rural economy is likely to boom with increased incomes.

Certain arguments against the FDI are as follows (non exhaustive list). a) Evidence in countries where organized retail has matured indicates that the claimed benefits are not realized in long run. b) It is also feared that FDI in retail would be the precursor to large scale unsustainable food systems and biodiversity loss. c) Negative effects are likely for small and medium farmers. As farmer representative you are supposed to take a 360 degree view of FDI in retail and articulate your position along with substantial supporting evidence. The above brief gives you some pointers and you are advised to conduct comprehensive research for your role play.

Traders As representative of trader community you are supposed to cover the concerns of intermediaries, commission agents, wholesalers distributors and other stakeholders in the traditional supply chain who are likely to adversely affected due to FDI in retail. Please consider both farm and non farm supply chains while developing your arguments for the role play. Please refer to some of the points that will help you develop your ideas. This list is non exhaustive and merely meant to indicate the nature of the arguments. You have full freedom to come up with idea and plans that will help augment your role play. 1) Farm products supply chain
a) There exists a symbiotic relationship between traders and

farmers. This is likely to be destroyed post FDI in retail due to economies of scale. b) Intermediaries are critical for small farmers as they are likely to be left out by organized retail players.

c) The

primary and secondary markets (mandis) for farm

products are major source of employment in rural and semi urban areas.
d) Many arguments relating to benefits of FDI are directed

towards non value adding intermediaries. You are expected to challenge the same by coming up with arguments to the contrary.
2) Non-farm product supply chain a) Pan India network of suppliers and distributors ensure that

products reach to the remotest corners of the country. Large consumer goods companies also bank on these channels to reach traditional retailers.
b) Due to segmentation of buyers there is a need for a wide

range of product quality and prices in each product category. This can only be catered to by traditional channels.
c) Independence of thousands of SMEs across country is

dependent on the traditional supply chains. With organized retail these SMEs are likely to become dedicated supplier of private labels. d) Many argue that FDI in retail will provide better quality and price to consumers. You are expected to come up with counter arguments and strategies. While playing the role of intermediary representative you have to come up with persuasive and logical arguments to reflect on the value that traditional channels deliver in Indian context.