Producer Companies and Modern Retail in India—Current State and Future Potentials of Interaction

Abstract

A policy environment that builds on the emerging business models of Farmer Producer Organizations (FPOs) that give producers control over value addition and improve their bargaining power could be married to the benefits to consumers of well-organized value chains operated by big retailers. Considering the most recent steps taken by the Indian government to open India's retail sector to further foreign direct investment (FDI), more direct cooperation between Indian farmers and big international retail chains is imminent. This chapter gives a quick overview over recent transformations in the global agro-food system in general and the impacts on small farmers. It then looks at the current state of Producer Companies in India as well as of modern food retailing in the fresh foods segment in India. After that, current links between this specific form of Farmer Producer Company (FPO) and supermarkets in India are being examined. Finally, conclusions are drawn.