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Mangalore: Reliance’s Entry – Fruit Vendors’ Worry

Melka Miyar
Pics – Ganesh S Perla
Daijiworld Media Network Mangalore

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Mangalore, Aug 13: The central market located in the heart of Mangalore City which is usually a bustling arena, busy with buyers and sellers of vegetables and fruit, looked totally deserted. The place bore an eerie silence on Monday August 13. The sellers here observed a total ‘bundh’ by closing the shutters of their shops thereby opposing entry of ‘Reliance’ into retail marketing in the city.




The sellers staged a protest in front of DCs’ office at about 11 am and showed their resistance against Reliance, which is all geared up and counting the days to enter into the lucrative Mangalore retail market. 

The protestors here alleged that, owing to the entry of multinational companies like Reliance and Birla into retail marketing, the local vegetable and fruit sellers will be hit the most and thrown on the streets. Hence they vociferously demanded that the city corporation should not allow these companies to enter into retail marketing.
 
Statistics indicate that around ten thousand people in the city depend upon the retail vegetable and fruit markets segment for their livelihood. Their contention is that if Reliance starts retail business in the city they will have no other source of business to fall back on and their families would be shattered.




They further rued the fact that companies like Reliance and Birla will directly purchase vegetables and fruits from the growers. And therefore will be able to sell these goods at a cheaper rate. This in turn will lead to the closure of the present retail markets in the city the protestors averred,.expressing their deep concern.

Elaborating on the matter the fact is that Mangalore is today growing rapidly. Hence people in the city too, are also shifting their tastes as per the new trends. Against this background the multinational companies is all set to capitalize on the changing tastes and interests of the people of Mangalore. This is the major cause for the agitation by the local sellers.



The billion dollar question now is “What will be the status and position of the local sellers after the flood of globalization begins?” 

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  • francis, mangalore

    Sun, Aug 19 2007

    Why the local sellers are worried? as long they sell cheaper then big retails shops there is no worries for them, because people will always go to them to buy fruits and vegetables

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  • MOHAN H NAIK, MANGALORE

    Sun, Aug 19 2007

    Well its good news that quality fruits and vegetables will be made available at reasonable rate,( If really it happens and stand for a long time !!! ). Public memory is very short. We have forgotten how our poor farmers are squeezed and being squeezed badly and exploited and the same product through agents reach the market, there by filling the pockets of middle man,Let it be vegetables, fruits, coconut, red chilly, vegetable oils, whatsoever.

    Are these reliance people have their own farm, do community farming, harvest, and send the product to malls with reasonable profit ? Absoulutely not. Its the same story 'Exploitation of poor (Farmers,roadside hawkers,small scale transporters) by Globally organised,professional,hi-tech companies.The poor farmer sells out his product to these big whales, and the product nicely wrapped and presented to the customer with a sticker on top 'A Reliance product' In early 70's we had craze for community farming, co-operative farming and even we have a so called Agricultural department, which can very well play the roll of ten such malls in a city like ours.

    This can address the issue of Quality of product and also the affordability to all section of people apart from socio-economical related issues, un-employment many on and many more. If one look at the road side or Small vegetable/fruit open market or shops do we get the feeling that these poor women sitting under the scorching heat trying to sell the product are trying to exploit us ? We bargain even to last 'aanee'. Its only the moneyed middle men who takes away the butter. Definitely I dream for more comfortable, most advanced, developed,India. But not at the cost of poor soul. Lets us not forget 'Green revolution and White revolution were achieved by common men under Government sponsorship.

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  • Edwin D'Souza, Angelore

    Sat, Aug 18 2007

    US companies enter India. Indian companies too enter different cities in Mangalore and around the world. Many Indians studied in US and they saw US style of trade. Some of these youngsters returned to India after their studies. Not that they wanted to but couldn’t succeed to remain in US.

    In Mangalore we see many new developments. Reliance and…. few other big organizations bring vegetable trade in a big way. The small traders are worried. They think their business will be ruined when these big companies arrive. I would welcome these big businesses in Mangalore. The consumers in Mangalore are not less intelligent. There should be choices for the consumers to go to someone of their choice for the reasons best known to them.

    People live in Villages and people live in Towns and cities. People also live in Gulf Countries and people live in other parts of the world. Everyone has his or her own opinion. People returning from Gulf countries now should be happy to learn that there are changes in consumer products in Mangalore. Remember, Smile- Product- price- cleanliness – surrounding make the consumer happy to deal with the trader.

    Mangalore International Airport is advancing. More traffic will be headed to Mangalore and all traders in Mangalore will have their own share.

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  • Nelson Lewis, Kingdom of Bahrain

    Sat, Aug 18 2007

    Does India really need the Super Malls and the SEZs? Are Indians, as a race, so sophisticated and enjoying a standard of living like U.S.A., Switzerland, etc., to have these things or shop in swanky set ups? There are millions upon millions of Indians who do not get one square meal a day? Instead of controlling the country's population, which would solve most of our ills, the Indian politicians are indiscriminately giving permissions and licenses for setting up these Super Malls and SEZs. Why?

    Obviously, because they get huge kickbacks. Have the politicians thought about limitless agricultural and fertile lands being used for these monoliths and the number of people who will be deprived of their livelihood and will be on the streets soon or resorting to a life of crime? Why cannot they set up these Super Malls and SEZs in unarable, hilly and desert terrain, where these infertile grounds would be put to good use and there would be enough land for parking, restaurants, etc.? What is Dr. Manmohan Singh, an eminent economist doing? Why does he not arouse himself from his slumber? Is the philosophy of this Government to make rich, more richer and poorer to die.

    Well, then the consequences will be disastrous for the country with riots, etc. I still prefer to buy things in shops, streets, flea markets, because I can then haggle and get things at a cheap rate. If the buyer is a good judge, then he can buy the best things and the cheapest price. I have bought very good things, including second-hand books on the foot paths of Bombay and very old items like manuals typewriters, compasses, clocks, horns, etc. from Bombay's Chor Bazaar, which left my recipient friends in Bahrain with amazement and awe.

    One of my friend could not believe that I had purchased a 60 or 70 year old manual typewriter for mere BD 1.500 (less than Rs. 150) and therefore I was refusing to accept money. Whereas the same typewriter was costing a fortune in this part of the world.

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  • Purushottama, Byndoor

    Sat, Aug 18 2007

    If opening of malls by Reliance, Wal- Mart etc. had converted India into another USA , it would be definitely a welcome step- but is it going to happen that way ? I doubt. USA is what it is because the average income is very high compared to India and not because there are few billionaires and the rest poor, as we are planning in India.

    Unless the income level of a large section of population grows the market can not grow. On the contrary, if , even the daily bread of common man is snatched that system may not last long. Regarding the cheating by vendors and ugly conditions in the market it is because we go there and buy .

    Dont we have stalls by Hopcoms which are a little better.Stringent conditions as USA may be introduced but will add to cost. It is fallacy to believe that the corporates are not going to squeeze you. Take for example the entry in the commodities market by the corporates which has resulted in speculative trends leading to soaring prices of essentials. Ask Vanilla and Jathropa and Tomato farmer about their experiences with corporates.

    It is not that the present system should continue but needs improvement particularly in ensuring remunerative yield to farmers. But any step aimed at depriving the vendors from their livelihood may be undesirable considering the long term social consequences. American formula is really worth emulating, but whether under present Indian conditions can it be done in toto ? Can development be through employment generation or employment deprivation - is the question.

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  • Maria, Marcia

    Fri, Aug 17 2007

    Joe, you dont know what you are talking about !! This is not buying kandike fish in the market!!

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  • Walter, Mangalore

    Fri, Aug 17 2007

    I totally support the Supermarket concept to buy food and groceries. Consumers are generally assured of reasonable price, reasonable quality, convenience and customer service. The protesting fruit and vegetable vendors should stop wasting their time attempting to convince the govt. that the public is better off consuming their unhygenic and unsanitory products of dubiuos quality.

    Just look at the pictures. Vegetables laid on the ground next to a huge pile of dirt !! Consumers deserve better. It appears to me that the vendors are not interested in competing with Reliance. I would suggest that if they can't or don't want to compete they might still be able to stay in business if they sell their produce to Reliance.

    In a country like India where roads and general infrastructure is inadequate and deplorable, Reliance will have to depend on local producers for perishable items like fruits and vegetables. Hmm.... bad roads might actually be a blessing in disguise Some persons have suggested that Reliance and other MNCs should confine themselves to high-tech businesses and not venture into retail food.

    I think this notion is ridiculous. Reliance, Wal-Mart or other MNCs have an obligation to their share holders to run a profitable business. In a capitalistic society such as ours, every opportunity to earn profit (ethically and legally) should be seized upon.

    I agree that, often times, capitalism doesn't seem fair to everyone. However, it's the best system we have thus far. A whole lot better than socialism and communism. In a capitalistic society, the CUSTOMER IS KING.

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  • prakash n rao, mangalore

    Sat, Aug 18 2007

    Vendors have felt the heat, because the golden goose which was laying eggs will not be there. See the quality of vegetables and fruits these vendors sell and the price at which they sell. These people will realise only when somebody brings good quality goods and also sell them at a reasonable rate.

    I think the Govt. should allow competition in every field and permit such big companies to enter market hitherto managed by small vendors. There is nothing wrong.

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  • Yasin Baig, Vittla

    Thu, Aug 16 2007

    Big business houses have their own vast fields for activities, they should not enter small retailers fields. All should leave small retailers to live with respect on their established business.

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  • Joe, USA

    Thu, Aug 16 2007

    It's a pity to read that the vegetable vendors in the city had to go on strike because of so called globalism.I have visited the Mangalore central Market many times while I visit my beloved and loving country.The way the vendors loot you is unthinkable.

    Right from the fish seller to the fruit vendors.Its the other way around in most of the western world. You get in to one shopping mall finish your shopping in an hour or two pay your bill at the counter and you are good to go.The price is the same where ever you go.It will really benefit the common man in Ma galore. TRY IT AND YOU WILL LIKE IT.

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  • Loveline T Rego, Manglaore Kulshekar / Muscat Oman

    Wed, Aug 15 2007

    Did any-one think of the farmer who is producing all these vegetables in his farm gets it to the so called vegetable market and sells to the rate of what these so called middlemen or vegetable vendors buy it from the farmers? belive it or not sometimes the farmers dont even get what they have even spent on that particular item.

    But the real profit makers are these vendors who take advantage of the situation and buy at a throw away price and then sells the same at double or tripple the rate of original value. In this case I think that Multinationals are good to give a healthy competition.

    If farmers are getting thier Due and they dont have need for any hassles, its good that they arrive. Also its good for Consumers, they get their products at very reasonable rate. If vegetable Vendors have to sell these items then let them keep a low profit margin and sell it. definitely the clients will come to them. What is the overhead of a vendor in a vegteable Market? So they can afford to sell at a very reasonable price.

    Let them do it. Its not justified they do all these protests and waste thier time, instead let them plan thier own strategies and come up with a tough competition as a tough competitor to reliance. This is my personal view

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  • Stephen, Shirva

    Wed, Aug 15 2007

    This s a act of foolishness. customer looks for better quality and price.and retailing provides that which locals merhants cannot. Lets we customers decide.

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  • Sumit Agarwal, Mangalore

    Wed, Aug 15 2007

    Small fruit vendors have to learn to compete, rather than cry. They have taken it for granted that they cannot provide better quality fruits at cheaper prices ! Why ??? Why don't they bargain harder with the middle men for better prices. Provide free delivery to the door step. Ensure that only good quality fruits reach the customers.

    In China, small mom and pop stores have already done it. There big retail industry and small mom and pop shop co-exist ... because the mom and pop shops "learnt" to compete in the market with big retail. Most small retailers are big cheaters. They deserve no mercy or sympathy. They always charge goods at MRP, while bigger shops always sell below MRP. The small shops do not keep their shops clean. Do not even let the customers touch any product.

    One has to buy without even being able to have an unhindered look at the product (because the product shelves are out of reach for the customer). These small retailers don't treat all customers equally - those who buy large quantities are given respect ... but relatively poor customers are kicked and bad-mouthed. Atleast big retails are fair to all customers and treat all of them equally. I will never touch these dirty mom and pop shops, as soon I have options in big retail shops where I get better quality and lower price.

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  • Achu, Suratkal / Saudi Arabia

    Tue, Aug 14 2007

    Multinational companies should maintain its product line in big industries like IT, Petroleum etc. and not to shopping malls, which hits the daily bread of small retailers. So, we need our government to intervene in this issue to save the rights of the poor vendors.

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  • Jitesh Kumar, Moodbidri

    Tue, Aug 14 2007

    This is one more new challenge thats it!! we need to accept it, as we accepted previous challenges...

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  • Purushottama, Byndoor

    Tue, Aug 14 2007

    It is generally belived that if a man's wishes are fulfilled he will be content unless he is too greedy. I do not understand why Big industrial houses like the Reliance are not content with their role in big projects like Petroleum, Cement iron and Steel etc. that they stoop to the level of usurping the daily bread of vegetable and fruit vendors.

    May be later on they will usurp the fish market ,repair shops, photocopy shops, leather kiosks, telephone booths, autorickshaws, cycle shops, tailoring shops....etc. etc out of which lakhs and lakhs of families are earning their daily bread.It may look improbable today but nothing is impossible.

    The money and muscle power have virtually usurped our democracy and the general public are fed with the opiums like religion,cricket, cinema, celebrity issues as food for thought so that real issues may be obscured. Where we are leading? India is shining while the common man is whining.

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  • preetam, USA

    Tue, Aug 14 2007

    The consumer will get better quality of fruits and vegetables. Smaller shops will have to give better quality and keep the prices down.

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  • A.D'Cunha, India

    Tue, Aug 14 2007

    As expected one of the many fallbacks of globalisation is the elimination of mom and pop shops where small family owned and run businesses make their living. Its sad but true the so called western style large mega stores, be either in food or other retail, will eat away the little ones.

    Of course, these mega stores certainly offer slightly cheaper goods and produce in the short run, in the long term, the prices will rise and an ordinary consumer will have no one to go to as small retail shops are alerady gone from the picture.

    On a personal basis, I prefer a small retail shops where I enjoy better relationships and a better bargaining power. Silmilarly, I enjoy eating local food because I know where it is coming from. Mega stores whether Indian or like Wal lMart entering Indian retail is really threat to the ordinay consumer in the long term.

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  • ruchir agarwal, Mangalore

    Tue, Aug 14 2007

    Already many smaller shops have closed down shops after the opening of large outlets in these new age malls.This is not a healthy trend for the economy. And now if vegetables and groceries also are marketed by MNC then situation is going to be worse.

    We have heard of large scale protests in other cities and violence.To avoid all this the authorities must give it a second thought.

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