International Journal of Research in Finance and Marketing
Year : 2014, Volume : 4, Issue : 1
First page : ( 18) Last page : ( 33)
Online ISSN : 2231-5985.

Farmer's perception towards FDI in retail in India

Singh Khujan

Assistant Professor, Haryana School Of Business, Guru Jambheshwar University Of Science & Technology, Hisar

Online published on 5 June, 2014.

Abstract

After battling stiff opposition, on 14 Sep 2012 Government of India allowed 51 percent foreign investment in multi-brand retail. This move was backed by the corporate as well as the large farm lobbies by saying that FDI will be helpful for the required growth in the retail industry, farmers and consumers. Today, Small Indian farmers realize only 1/3rd of the total price paid by the final Indian consumer. According to the Farmer leaders biggest problem of farmers is marketing. The FDI in retail can open alternative avenues for the farm product of farmers. Therefore, this study is an attempt to know the farmer's thinking towards FDI in retail. This study is based on primary data collected through a questionnaire consist of 10 statement on 5 point likert scale. The farmers who are linked with Mother dairy, WalMart and reliance freash of Haryana and Himachal Pardesh constitute the size of the population. The data has been analysed with the help of one way – ANOVA for testing equality on the basis of farmer's area, company, age, education and agricultural land of respondent. No significant difference has been found among the 05 area's of respondent with regard to the MNC retail sourcing supply of farm goods direct from fields, FDI in retail should be implemented immediately. No significant difference has been found among the 03 groups on the basis of respondent retail company at any level with regards to Retail MNCs buy the quality vegetables and fruits. No significant difference has been found on the basis of age in the perception of famers with respects to the statement like -Wall mart like MNC will use their monopsony power to keep farm produce price low and no significant difference has been found on the basis of education of respondent in the perception of farmers towards- Wall mart like MNC will use their monopsonic power to keep farm produce price low, MNC will disrupt long and tested time based channels of trade and MNC buy quality vegetable and fruits. Hence, in all these cases null hypothesis is acknowledged.

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Keywords

Single brand, Multi brand, Organized retail, Foreign direct investment.

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