IIPM MANAGEMENT INSTITUTE
...Bharti-Walmart, Adani Enterprise and many more are betting big on Indian farms & on retailing of fruits, veggies, poultry, dairy products, staples and processed foods
India’s GDP is growing at a fast pace of 9.4% in 2006-07 with a high tide in all key sectors, except agricultural industry that has reported a mere 2.7% growth, as against 6% in 2005. In spite of being the pulse of our nation, the government’s focus has shift ed from agriculture to the manufacturing and services sector, in order to expedite the growth of the country. Apart from this, the decline has some of the same old reasons that the North-East monsoons that aid the growth of Rabi crop fell almost 21% below expectations.
But not all is gloomy in the agricultural sector. For instance, the food processing industry happens to be the priority sector this year and the government has granted a generous amount of Rs.10 billion, especially for agro-processing infrastructure & market development. Corporations, such as ITC with Aashirvaad and Kitchens of India, Bharti Field Fresh et al, have also penetrated this industry with an exotic range of premium quality fresh fruits and vegetables to offer to the markets worldwide. Of course, ITC’s e-choupal supply strategy is the most hyped one currently in the agriculture sector. ITC officials commented to B&E, “We will have more rural coverage through our e-choupals and we are also planning to make cold chains in many of these areas near agri-lands. This becomes important as agriculture will play an important role in achieving our export targets. ITC is also testing the option of having agri-retailing presence in all the areas of the country within a few years.”
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Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative