Permission sought to buy from farmers

Mukesh Ambani-led Reliance Retail has written a letter to the Punjab government seeking permission for procuring fruits and vegetables directly from the farmers for its retail stores Reliance Fresh.

The approval from the government would help the consumers in getting fresh fruits and vegetables at competitive rates.

This was disclosed by President and CE (Agri and Food Supply Chain) Reliance Retail Sanjeev Asthana to Business Standard. At present, the company is procuring fruits and vegetables through mandis of the state.

Tamil Nadu, Kerala and Madhya Pradesh government have allowed the chain to procure directly from the farmers.

Commenting upon the retail size, Asthana said the size of retail market in India ($ 300 billion) offers huge potential. It is pertinent to mention here that the company would invest Rs 25,000 crore in retail infrastructure and supply chain pan India.

The Punjab operations of Reliance Retail would start on Wednesday with the launch of 5 pilot Reliance Fresh stores in Jalandhar. The Reliance Fresh stores will carry fresh fruits and vegetables, staples, top up grocery, dairy products and will also offer staples under brand name "Reliance Select."

The company intends to open 100 Reliance Fresh stores in Punjab in this financial year in five major cities. It would open these stores in Jalandhar, Ludhiana followed by Amritsar, Patiala and Chandigarh

The company intends to target 3,000 household in a 2 km catchment area. He further added that once the store is established, the free delivery option would also be available.

He added the company initially would set up 35 collection centres across the state. At present, the company has set up 9 collection centres across Punjab, out of which 7 are operational. Apart from that, the company would also create 40-50 rural hubs in different part of the state.

When asked whether the company would enter into contract farming with the farmers, he said, " We would work closely with the farmers to impart latest technical know how to them. We would also build cordial relations with the workers by working closely with them and providing them with latest agro-technology".

Also, the company is in talks with several institutions like universities research centres to pass on latest agro technology to the farmers.

He refuted the apprehensions that the entry of Reliance might give a setback to the small shopkeepers, he said, "This is not true, as at many places they are buying from us."