NEW NORMAL PREDICAMENT OF FARMERS IN THE FDI RETAIL DOMINION

The 1991 economic reforms of the country led to the increase in income in the manufacturing and the service sector both. This has led to changes in the food habits of the consumers. On the other hand there has been a decrease in the GDP and income growth of the farmers. In the growing middle class, a shift in dietary preferences began to take place. The demand for wheat and rice decreased while the demand for fruits, vegetables, fish and meat and dairy and processed food grew. At first the government thought of expanding the production of food grains by going away from the cereals and moving towards the fruits, vegetables and other high valued products. The decision makers thought that shifting to the higher valued products would lead to an increased prospect in the food processing. But this did not take place because the agricultural sector did not have the infrastructural link that is necessary between the farmers, retailers and the food processors that helps in bringing the high valued processed food product to the middle class. There has been a growth in the food processing industry in the last decade and there are many ready to eat and ready to cook food products in the market.