More on the Organized retail debate

The earlier post spoke about the demand from the government to increase the base of the study to evaluate the impact of organized retail on smaller mom-n-pop stores. The suspicion that the report was not coming out with negative news was confirmed in a news item in the business standard which says that the interim report was pointing towards benefit to farmers and not much impact on the smaller shops. The benefit for farmer’s because of organized retail can be seen from the price which Kellogg’s is supposed to be paying to farmers for wheat in MP. The minimum support price (msp) of wheat is 850/- per quintal and Kellogg’s is believed to be paying upto 2700/- per quintal in the face of competition from Reliance fresh in the wheat procurement.