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This is an archive article published on September 30, 2008

German giant says its model will benefit farmers

While the Forward Bloc opposes the issuance of a trade licence to Metro Cash & Carry claiming that it will hurt the interests of farmers and small shopkeepers, the German major claims that these communities will be hugely benefited by its Business to Business model.

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While the Forward Bloc opposes the issuance of a trade licence to Metro Cash & Carry claiming that it will hurt the interests of farmers and small shopkeepers, the German major claims that these communities will be hugely benefited by its Business to Business model.

The model is quite unlike the marketing system prevailing in Burrabazar, the largest wholesale market in the city, and other markets.

In Burrabazar, anyone can buy commodities in a large quantity, whereas the consumers of the Metro Cash & Carry must have a proper trade licence issued by the company itself. People without a proper business establishment like hotels, restaurants and kirana shops, cannot purchase commodities from the distribution centres of the company.

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The German giant will issue identity cards to its customers who run business establishments. The company has constituted several teams to verify credentials of the applicants.

The unique business model, a first in the state, will streamline the entire supply chain between the farm producers and customers. It will bypass several middlemen, who have been taking away the profits of agricultural produce by duping farmers.

Under the model, the German company will procure its agricultural commodities and other food items from several cooperatives and marketing committees registered under the Agricultural Marketing Board. The company’s spokesperson, Vishal Shegal said, “We have already tied up with some local cooperatives for procuring the farm produce.”

He further added: “Farmers will be hugely benefited by this model as it will eliminate the wastage of commodities. We have our special trucks for carrying agricultural produce that will reduce the logistic cost for farmers and small shopkeepers, besides keeping the produce fresh. We will also train farmers and shopkeepers on how to preserve agriculture products.”

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To ensure that no retail business is undertaken by the company in future, the authorities have also limited the quantum of sale by fixing certain quantity below which commodities cannot be sold off.

President of Aloo Byabsayi Samiti, Sanatan Santra said: “Cooperatives and registered marketing committees will benefit from this because the farmers will be able to sell at a higher price than they presently do.”

The Forward Bloc, meanwhile, is yet to decide on the conditions that will be imposed on Metro Cash & Carry for issuing the APMC licence. “We have not yet decided the rules for the company. We will certainly protect the interests of poor farmers and small shopkeepers, “said Naren Chatterjee, a Bloc leader.

Hawkers protest Cash & Carry licence
Kolkata: To protest against the issuance of the Agricultural Produce Marketing Committee trade licence to Metro Cash & Carry, the Hawkers Sangram Samity staged a demonstration at the company’s office on the Eastern Metropolitan Bypass on Monday and burnt the effigy of the comapany’s managing director. “We will continue our protest if the government issues a licence. This kind of organised wholesale trade will destroy the livelihood of poor farmers and small shopkeepers,” said Shaktiman Ghosh, general secretary of the samity. The company’s spokesperson Vishal Sehgal said: “I really do not understand why the hawkers are protesting because our business does not affect their businesses.”
— ENS

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