Impact of modern trade(Retail) on agriculture in India

The success of any retail format largely depends on the efficiency of its supply chain. India has a fairly organised and developed non-food manufacturing supply chain, thanks to the presence of large local and multinational corporates that have built significant experience and scale by following best practices in their respective fields. Like most other developing economies, however, India continues to be lacking in the last mile distribution segment. The supply chain in India is fairly unidimensional. There is very little valueadded activity as the distribution remains fragmented and unorganised. This can be primarily attributed to the geographical and cultural diversity and complexity of the region and the lack of capital available for investing in technology and modern retail formats. Given the existing fragmented distribution system, organised suppliers are happy to retain the bargaining power they have over retailers, especially in the case of FMCG products.