UPSC Mains 2013 · GS III · Q9(a) · 5 marks · 100 words

Discuss the impact of FDI entry into Multi-trade retail sector on supply chain management in commodity trade pattern of the economy.

हिन्दी में

अर्थव्यवस्था के माल व्यापार पद्धति में बहुव्यापार खुदरा क्षेत्र में विदेशी प्रत्यक्ष निवेश के प्रवेश के प्रभाव की विवेचना कीजिए।

How a topper answered the closest question

Toppers wrote this one in a test series: “Do supermarkets contribute to small farmers' income by reducing the number of market intermediaries in India? Argue”

ApsaraAIR 192 · CSE 2024 · 121 wordsTheir whole copy

Opening · a definition

Super markets are the final hub in supply chain linkage of farm produce, where products are sold to the consumers at retail price. Role of supermarkets:

Body · points

] -> [ Farm produce ] -> [ Intermediaries ] -> [ Whole sale ] -> [ Retail ] -> [ Consumers ] | | v v less price More price realisation paid.

vs

[ Farmer ] -> [ Farm produce ] -> [ Super Markets ] -> [ Consumers ] | | v v Effective Effective price realisation price payment.

Role of supermarkets:

(1) Direct procurement from farmers reduces role of intermediaries → checks ineffective price fixation

(2) Helps the farmers in preventing distressed sales at the farm gate

(3) Reduces the transportation cost for farmers, as produce is directly procured by supermarkets.

(4) Effective price realisation of farm produce benefitting both farmers & consumers.

(5) Provision of cold storage infrastructure in supermarkets helps in effective procurement.

Close · a way forward

Further clustering of small & marginal farmers into Farmer Producer Organisation & linking them to Super Markets & food processing industries helps to achieve the goal of doubling of farmer's income.

How toppers approach this question, and more on its topic: open the question.

Source: UPSC, Civil Services (Main) Examination 2013, General Studies Paper III, Q9(a). The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.