In fact, entry of big retailers has created a new dimension in the commodity market, particularly in the last two years. The small traders hold them responsible for the current scenario in the market, including steep rise in prices. A rice trader, S K Mishra says many small businesses have come to suffer with big retailers entering into the market. They are virtually creating a monopoly in the market, driving the small traders out of business. |
"Having abundant capital, these companies are investing heavily in contract cultivation. They are entering into agreements with farmers by making advances and fixing rates in 500-600 acres. Consequently, these commodities are not reaching the operators, either the wholesalers or the retailers in the local market.
Even commission agents are losing business in the APMC," narrates Mysore Agricultural Product Market Committee (APMC) ex-President N Nagaraj.
"The local traders cannot compete with these company retailers. They are investing crores of rupees and causing price fluctuation and scarcity in the market, by stocking huge quantities and releasing it to the market when it is advantageous for them," adds APMC Secretary M R Satish.
Explaining the recent price trends, he says the price of rice has risen by Rs 300 per quintal in a single month. The Andhra variety rice is sold around Rs 2000 from the earlier Rs 1,800 a quintal. A better quality is priced between Rs 2,400 and 2,500 as against Rs 2,100-2,200 per quintal earlier.
"Small traders are not in a position to invest huge sums the market demands today. They are unable to indent stocks by making heavy advances. The position has turned worse since eight months," he laments and cites the example of rice, the best quality of which has reached Rs 26 a kg this year from Rs 15 last year.
He criticises the government for failing to tackle the situation and protect the small traders, who were the key operators in the grain market so far.
"What is the government doing? Why is it keeping its eyes shut? There is no shortage of commodities today. It is artificially created for earning more margins. Why is the government not doing anything to check the growing monopoly," he asks.
Surinder Singh, another trader, wonders why the big retailers should enter even the vegetable marketing.
"Why should the big companies be allowed to enter into the poor man's domain," he asks.
"Today, our position is like the 'old barber and his old knife.' We have to patronise existing customers by extending loans and recover it as and when they pay. Once, a buyer finds the accumulated dues are beyond his capacity to pay, he disappears, leaving us in a total lurch. This is the present scenario in the APMC," bemoans Nagaraj.
