IndiaRetailBiz

‘Fresh’ retailers, notably Reliance and Spencer’s, who were asked on 23rd August,2007 by Mayawati government to shut down their stores in the state, now have reasons to smile as farmers have begun organisiing in their favour in Uttar Pradesh.

Realising benefits of direct dealing with large retailers, which seeks to bypass several layers of middlemen, each one of which adds up 30 to 40% margin, farmers in the state have organised protest under the banner of powerful Bhartiya Kisan Union (BKU). They want the closed stores reopened.

The Nawabganj unit of BKU organised a protest on 27th August, 2007 and submitted a memorandum voicing dissent against the government’s policy to the District Magistrate, according to an ENS report.

BKU also wants representation of farmers on the government’s committee of secretaries that will submit its recommendations on whether or not to allow big retail to sell groceries and farm products in the state. BKU members warned of harsh steps if the government turned a deaf ear to their demands.

Similarly, on 2nd September, 2007, main streets of Lucknow witnessed formation of a human chain by a few thousand farmers, who were demanding reopening of the grain and vegetable retail stores that were closed by the state government ten days ago, IANS reports.

Farmers, during the BKU protest, have also asked for revival of the new ‘farm’ policy that the Mayawati government had announced earlier, which among others would have allowed large corporates to deal with farmers directly for their procurement as well as to enter into contract farming agreements. This would besides eliminating middlemen would have minimised the role of Mandis.

The chief minister had earlier cited law and order problems to close down the retail outlets and rolled back her new farm policy citing intelligence reports that suggested farmers’ opposition of the same.

“It was the state’s misfortune that some undesirable people managed to convince the government that both farmers and common public were not in favour of the new policy” said the farmers memorandum submitted by BKU.

“Mayawati should not get misguided by such misnomers spread by unscrupulous elements and order revival of the discontinued policy together with reopening of the shut retail stores, so that the unabated exploitation of farmers by middle-men and unscrupulous traders could be brought to an end,” the Memorandum further added.