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Trade induced growth impacts of corporate entry in the food sector: A case study of fruits and vegetables sub sector in the Punjab State of India

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  • Goel, Veena
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    Abstract

    Study indicated that the entry of corporate sector in the Punjab State is both in retail and wholesale trade of the fruits & vegetables sub sector. At the organized retail stores these companies have provided its consumers a single window service for the various product assortments while within the fruits & vegetables category (have minuscule scales) widened the product selection choices. Corporate entry in wholesale trade has linked several product specific production belts with medium to high income consumers through various market segments such as organized stores, traditional wholesale/retail markets and the food service. These companies have also provided product variety through imports while opportunities for crop diversification towards higher value crops through exports. In the fruits & vegetables sub sector companies engaged in the retail trade have adopted for short to medium while those in wholesale trade for medium to long-term more sustainable approaches for the sourcing of supplies to build up competitive advantages. This has started generating growth in the Punjab state that has manifested in terms of higher incomes for as the partner farmers and creation of employment for the skilled, semi-skilled and unskilled manpower throughout the supply chain. As the market sizes of these companies expand and diversify in the domestic/global markets it shall enhance growth thereby magnify its impacts. --

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    Bibliographic Info

    Paper provided by Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth with number 24.

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    Date of creation: 2011
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    Handle: RePEc:zbw:iamo11:24

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    Keywords: Fruits & vegetables trade; corporate groups; growth;

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    1. Chang, Roberto & Kaltani, Linda & Loayza, Norman, 2005. "Openness can be good for growth : the role of policy complementarities," Policy Research Working Paper Series 3763, The World Bank.
    2. Michael A. Clemens & Jeffrey G. Williamson, 2001. "A Tariff-Growth Paradox? Protection's Impact the World Around 1875-1997," NBER Working Papers 8459, National Bureau of Economic Research, Inc.
    3. Bergès-Sennou Fabian & Bontems Philippe & Réquillart Vincent, 2004. "Economics of Private Labels: A Survey of Literature," Journal of Agricultural & Food Industrial Organization, De Gruyter, De Gruyter, vol. 2(1), pages 1-25, February.
    4. Arora, Saurabh & Romijn, Henny, 2009. "Innovation for the base of the pyramid: Critical perspectives from development studies on heterogeneity and participation," MERIT Working Papers 036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence," NBER Working Papers 7081, National Bureau of Economic Research, Inc.
    6. Jagdish N. Bhagwati, 1978. "Anatomy and Consequences of Exchange Control Regimes," NBER Books, National Bureau of Economic Research, Inc, number bhag78-1.
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