Retail Sector Revolution in India and Agricultural Marketing: Issues and Concerns

By : Deepak Shah

Page No: 18-25

Abstract
A paradigm shift in the retail sector of India is taking place owing to phenomenal growth in organized retailing over the past few years, which has emerged from the shadows of unorganized retailing and is contributing significantly to the overall growth of retail sector. The new format of agribusiness is expected to reduce inefficiency in agricultural marketing, which arise due to multi-layer intermediaries. Though the agricultural logistic management is expected to improve consequent upon reduction in market functionaries and higher participation of private sector players, long-term profitability and sustainability of retail sector can be achieved only if supply chain is realigned into efficient, agile and adaptable network. While extending scalability, such supply chain should have capability to handle larger volumes, expand reach, balance costs and address the demographic variations. Indian companies are now concentrating on logistic services to reduce costs. It is expected that liberalizing the retail sector will usher in investments into the developing and improving food supply chain. The entry of new companies in the retail space will also benefit the exchequer. It will result in greater employment and will offer the consumers greater choices and competitive prices.

Author :
Deepak Shah : Faculty Member, Gokhale Institute of Politics and Economics (Deemed University), Deccan Gymkhana, Pune, Maharashtra, India.