The Impacts of Supermarket Procurement on Farming Communities in India: Evidence from Rural Karnataka

The rapid expansion of supermarket retailing, with its impact on farmer communities, represents a contentious part of India's recent economic development. This article reports on three districts of Karnataka, where a survey of 78 farmers supplying fruits and vegetables to Reliance Fresh, a leading supermarket chain, reveals low levels of vertical co-ordination, a lack of written contracts, and highly competitive environments, with the quality parameters used by supermarkets specifying only a limited set of conditions. These findings suggest that supermarket-led restructuring in India has not yet reached a stable institutional situation.