Can the retail sector accommodate everyone?

The Hindu Business Line reports that with the big guns of retail focusing on Hyderabad and opening multiple stores, local vendors worry that the market might not have room for them anymore. With Reliance, Subhiksha, FoodWorld and Spencers buying fresh fruits and vegetables directly from the farmers, local vendors who cannot source directly for farmers and have to use middlemen might become more expensive then modern retail outlets.

Another concern is that modern format retailers will purchase all the good quality produce, and only second grade produce will be left for the lower-income groups. Mr Madhu, a senior CPM leader and Rajya Sabha member said that

"They (the organised players) sell at low rates initially. But once their supplies are streamlined, they will increase prices sharply."