Mukesh allays farmers' fears

Under attack from small shopkeepers and farmers in several states for the retail initiative, Mukesh Ambani today took great pains to explain how Reliance Retail has always been a friend of these two important constituencies.

"We are sensitive to the interests of small shopkeepers. Our retail initiative will in no way jeopardise their interests and those of small vendors who service consumers," Ambani said.

On the contrary, Reliance Retail would enable them improve their income and serve consumers better as it would generate significant employment opportunities "" both full time and flexible time "" particularly in rural India for those who are weak on employability, said Ambani.

"There have been concerns in some quarters on the roll-out of the organised retail initiative, which seeks to change a system that has been in place for centuries. Transformational initiatives always come with challenges. We stand committed to what we have set out to achieve. It is my conviction that the organised retail initiative will gain momentum once the benefits are fully understood," he said.

Asserting an example, he said Reliance was bringing to farmers, to begin with in Gujarat, Maharashtra and Andhra Pradesh, high-quality tissue-cultured banana plants that yield 35 to 40 kg a bunch of fruits as against 20 kg with conventional cultivation.

Reliance directly buys these bananas from farmers at prices that are 10 to 15 per cent higher than what they get through conventional channels. Reliance also uses ripening processes that result in safe-to-eat bananas.

Reliance will also shift its focus from industrial and services sectors to cover agriculture and rural sectors, to become the first Indian company to focus on the agriculture and rural sectors as fulcrums for growth. "Our recent emphasis on bridging the farmer with global consumers, through the organised retailing initiative, is a precursor to an agro-driven strategy. Reliance will work with farmers in creating economic opportunities," he said.