To my mind the current handling of the
FDI issue has similarity with the Colva Margao taxi service. Hundreds
of commuters are put through immense hardship on a daily basis when
they commute from Colva to Margao and vice versa. 10 to 15 passengers
are stuffed in each Ambassador Taxi and transported like cattle. The
logic of not introducing a bus service on this buzy route is simple,
the few taxi drivers who eke out a living on this route will have
their livelihood effected.
It is a pity the Tonga walas of Belasis
Road in Mumbai, had no such benevolent policy walas. Otherwise today
in Mumbai we would be moving around in horse drawn carriages. Another
example is the Premier Padmini, why was a car manufacturer exposed to
the ravages of competition and be allowed to die, was the company not
taking care of a few thousand mouths all along the louzy roads in the
form of unskilled roadside mechanics.
The current FDI policy therefore seems
to sacrifices “Greater Good” for a few. Actually “seems to”
is the correct word because in reality nothing is sacrificed everyone
benefits. The Kirana store by itself is going to die a natural death.
Why? Simple, look at the cost of real estate across the country, can
anyone in his right mind consider starting a Kirana store in Patto,
Gurgaon or Nariman Point. Given the cost of the shop, the scale is
just not there. The other aspect is aspirational, every kirana store
owner has his kids studying and not many want to finish and go back
and take over dads kirana store, they will prefer starting an air
conditioned computer store but surely not run a kirana store. The
third reason is that the kirana stores in the lesser developed areas
are not going to be threatened by a big store, their customers do not
buy for a month at a time, they buy just for the day, that is why
Re1/-sachets of shampoo sell in huge nos in rural India and large
size bottles sell only in the west. Can you imagine how many sachets
a Walmart would have to sell to break even. They will not even try.
So the opponents of the FDI policy are
creating a hype for their own selfish purposes and the CUSTOMER is
not on their radar. If FDI comes in and prices fall why should anyone
complain. Are the opponents of FDI going to give an undertaking that
they will only buy more higher priced items from kirana stores and
ignore the lower price at large format stores. The kiran store is
smarter, go to the METRO store in Mumbai/ Bangalore, the customers
are kirana store owners, they buy from Metro at a lower price better
than the distributor that supplies them and shares this benefit with
their customers to build more loyalty. Win Win I would say.
With large format stores in operation,
demand for capital goods viz racks, trolleys, baskets, ofocurse
personnel will be in big demand. Ask yourself, if you were a shop
assistant in a shop in any market in India today, would you not jump
at the opportunity to work in a large format store with better
working conditions, a nice uniform, clean toilets and drinking water.
The conditions of shop assistants in our stand alone stores is
pathetic, not to mention the pay is peanuts. Have those opposing FDI
considered this.
Services for printing, Point of
Purchase material, entertainment industry will get a fillip because
of the demand that will be generated by the large format stores. Any
aspect that is currently utilised by a kirana store will be
multiplied, unheard of items and services will find markets and
finally the customer will be able to get a clean environment to shop
with reasonable comfort or simply pass his time walking around.
Does this all spell the death knell for
the lowly Kirana store. Not at all. Go to England the home of TESCO
and you will find at every junction in residential neighborhoods a
convenience store packed with daily necessities. You cannot will away
competition, but the Kirana store will reinvent itself. They do not
need the services of self centered politicians who are thinking of
their own electoral brownie points. Unfortunately for India, and
fortunately for the opposition, we have a wishy washy Prime Minister,
undermined by corrupt party men and therefore “Margao Colva” taxi
type decisions are taken.
However India and Indians are made of
sterner stuff, so sooner that later decisions will be taken which
benefit the citizen and customer. FDI will be allowed.
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