Sunday, January 14, 2007

RBI encourages retailers to involve smaller farmers

The Reserve Bank of India is pushing for the inclusion of small farmers in the retail industry so that the effects of the boom in retailing can be felt in the areas that sorely require them. The Economic Times reports that in the interest of the retail industry’s growth being inclusive, the Reserve Bank of India (RBI) has asked retailers to include small and marginal farmers to be part of their plans. The RBI executive director VS Das said tht FMCG companies that plan to leverage its brand equity by selling branded agri-products should source products from small and marginal farmers.

At present, retailers must go through a mandi to buy produce according to the Agriculture Produce Marketing Committee Act, an outdated law. He added that by reducing the supply chain would benefit both retailers and farmers.

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