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FDI in Retail

Before liberalisation, the difference between wholesale prices and retail prices was a mere six per cent.

After the removal of Quantitative Restrictions, which opened up India to dumping of subsidised products, wholesale prices started to go down while retail prices continued to climb. The entry of retail giants will further push wholesale prices down, without taming the price rise. It is not the number of middlemen that matters but the size of a middleman. A giant retailer is a giant middleman. It might be a single player, but it harvests super profits at the cost of society.


http://www.asianage.com/columnists/no-therapy-retail-391

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