HAWKER

Rehriwala( Hawker)

retailers and rehriwalas( Hawkers) who are  overcharging the customers not the middle men. A study shows that the middle man who are called aarti only charge 3% from the rehriwalas as authorised by government and retailers who buy vegetables and fruits from the mandi (Vegetable market), and the retailers and rehriwalas are charging 100% to 300% to customers to make both ends meet.


 " A retailer is one who stocks the producers goods and is involved in the act of it to the individual consumer, at the Margin of Profit ".. 

As such retailing is the last link that connects the individual consumer with the manufacturing and distribution chain.  A market fee is collected by government @3% during the sale purchase of eatable items through grain and vegetable market and money so collected is spent for construction of grain and vegetable markets in the states besides constructing sheds, roads and providing potable waters. The customers has to burn their  hands from retailers but before blaming the retailers we shall have to study  the economics of retailers also.

When the inflation was not so high, a hundred rupee was enough to make both ends meet for poor man.  At that time he was selling his products at a margin of 50% to 100% but when government failed to control the inflation-to survive he had to raise his margin of profit from 100% to 300% e.g. to subsist his family he need at least 300/- per day.

The WSP of onion was 4 rupees while it is being offered to customers between 15-20 rupees per kilogram, similarly the WSP of turmeric is nearly 50 rupee while it is being sold by retailer at rate of 150-200 rupee  per kilogram.

The high rates being charged  to customers are  acidic too middle class now and roaring  that the eatable items have became very costlier without know the facts that the real prices increased after the implementation of 6th pay commission recommendation to government employees. The high salary coupled with arrears fuelled the economy and inflation become an incurable disease.

ARE RETAILERS MAIN CULPRITS FOR PRICE RISE ?

Graph for Retailer Market Size

 According to one study, the total turnover of the hawkers in India was approximately Rs 8,000 crore per day, with the hawkers selling 75 per cent of the vegetables in urban Indian market. The detail study of retail scenerio in India and globe gives complete statistics of retail business to GDP and total retail business in Indian economy is around 350Billion dollar. According to economists, India is emerging market for retail business since the income of many people has increased multi fold, so FDI are putting pressure on Indian government to open gateway for them so that they could do business.

SOLUTION

If you actually consider the government itself is responsible for food and pulses inflation besides others general consumable goods because till date the government has not enacted any law which prohibit the unethical profit and fix the band of profit at all level. We are of the opinion once the law for margin of profit is enacted, the markets will have factual prices based in demand and supply factor, and may remain uniform through out in India for majority of items.

If government at any time allow FDI retail in India, than it must be allowed that the few items specially milk and dry milk franchisees should be necessary for distribution through out in India.

Having given permission to FDI in retail business have raised hue and cry in many sectors but the real culprit for rise in price is