Inclusive fresh food retail chains in India: a case study from Punjab

Abstract

Linking primary producers with global and national markets through fresh food retail chains has been identified as one of the emerging agricultural marketing practices in India to improve the livelihoods of small producers. The fresh food retail chains are developing linkages from farm to fork to buy fruits and vegetables directly from farmers. However, the retail chains everywhere are, generally, found to be working with only large farmers and excluding small farmers from the value chains for various reasons. In this context, this chapter examines the inclusiveness and effectiveness of fresh food retail chains in linking farmers with end markets with the help of a case study of a retail chain (Reliance Fresh) based on a primary survey of growers of two major crops—cauliflower and cabbage in Punjab. The study reveals that the fresh food retail chain primarily works with relatively small intensive vegetable cultivators and procures only a part of their produce. The farmers were left to sell the rest of the produce in the local markets. The retail chain farmers realized higher profits compared to non-retail chain (traditional market supplying) farmers mainly because of higher yield and higher price realization. Using the evidence and inference from this study, a number of strategies are proposed to further facilitate the marketing of farm produce.