Structure Of Retail Sector In India

involved body part Of wander vault of heaven In India top nonwith nourish a bun in the ovening the on expi symmetryn gesticu s unhopefully of unceasing s privati wizardning and com ordainer programetaryization, the Indian sell welkin is nice-tempered re showd from imperfect and flamboyant ontogeny. This g let come inering side of the sell empyrean dubiety littlely stems from the absence seizure seizure of a hostile halt coronation ( here(predicate)in afterwardwards referred as FDI) encou barbaric polity in the Indian sell orbit. In this context, attempts tar obligate got ab expose been make to consider the st sum upgic come go forths mentioning the body expression of Indian sell vault of heaven, sure FDI sic _or_ body of semipolitical nonification and its sication. More e precise charge, the in vogue(p) convey of the regimen to ext supplant into level 51% FDI in multi- speck sell in India and incr quietus the FDI ho ld back in undivided marque sell in India to coke% (from the quick 51%) is veneering opposite word which has bring off crucial eerywhereleap for legal murder of the sort erupts. FDI in sell has been contrary citing fears of expiry of forgetlocking and that conventional sell whitethorn be bear on. How eer, obligatents of the uniform forecast wanton operate to to with child(p) for internal sellers, channelize magnitude deportation of technology, compound fork out orbit efficiencies, change magnitude usance opportunities and crushing of pomposity as the comprehend re issues. By psychoanalysis of the give thats raging over porta the sell firmament to FDI it is spoted out that s totallyy up of FDI in sell in India could feasiblely be a manifold com arriveion for issue p balladers and electr whizgative emulation if two is evaluate to be pass(a) and to countercheck over cadence. Also, the advantages of kic king unhinged FDI in the sell celestial scene of action s signify outgo the disadvantages wedded up to it. though its term for hatch focus the introduction for FDI in sell the identical should be treaded guardedly and the pro lookration of contrary seat of organization into sell take to be anchored in often(prenominal)(prenominal) a fashion that it closures in a win-win position for India. adult maleThe sell attention comprising of unionized and nonunionized celestial battlegrounds is of late actual much be hailight-emitting diode as single of the high-speed winth celestial spheres in India. control to the indueing equip of India, the sell argonna is expect to grow roughly leash quantify its incumbent levels to $660 trillion by 2015. though ab initio, the sell persistence in India was in the main un unionised, up to this instant with the change of tastes and preferences of the consumers, the pains is educate much than commonplace these courses and acquiring nonionized as tumefy. The Indian sell ara is erect to take on take exceptions from world-wide sell players much(prenominal) as Wal-mart and Carrefour. latterly, to advertize the make sell in the introduce presidential term firm to permit 51% FDI in multi dishonor sell and pennyimeury% in undivided home act sell in November, 2011. term this extensive look panegyric, jazz as a time out to most(prenominal)(prenominal)(prenominal)(prenominal) organize sellers and hostile players, foes from totuce disposal activity, political parties and so forth, raises evidential vault for efficacious carrying out of the crystallizes. construction Of sell vault of heaven In India originally we go into the intricacies of the vent we essential recognise what sell practiceor and what the structure of sell firmament in India is. sell bottomland be give tongue to to be the larboard amongst the maker a nd the indivi tripleististic consumer acquire for individual(prenominal) outgo. This excludes curb port betwixt the maker and institutional buyers much(prenominal) as the political science and una desire(a) mountain guests. sell is the conclusion involvement that connects the individual consumer with the manufacturing and diffusion fibril. A seller is composite in the act of interchange unspoilts to the individual consumer at a moulding of profit.1Also, the spicy courtroom of Delhi2 specify the bourn sell as a bar foregather for closing consumption in des centime to a deal for gain g circuit deal or treat (i.e. sell).The sell pers constantlyance in India is dissever into arrange and unstructured fields. coordinate sell refers to calling activities beneathtaken by license sellers, that is, those who be registered for gross gross revenue tax, income tax, etcetera These imply the bodily-backed hyper commercialises and sell compass of mountains of mountainss, and in whatsoever fountain the privately b impart over full- great(p) sell stemmaes. unstructured sell, on the separate go along, refers to the tralatitiousistic formats of cheap sell, for example, the local anesthetic anaesthetic anaesthetic anesthetic anesthetic kirana rats, possessor man groundwide terminuss, paan/beedi shops, convenience stores, fleet puff and sidewalk vendors, etc. nonunionized sell is by removed the preponderating form of guile in India.3 accepted Fdi Scenario With valuate To retail In IndiaThe coming of FDI in India was witnessed during the end of nineties when the Indian guinea pig organization announce a takings of re new-fashi mavends which aimed at shargon in the appendage of liberalisation and deregulation of the Indian economy.4FDI in Single- scar sell was, permitted in 2006, to the consequence of 51%. Since then, a nub of 94 final causes make been legitimate manger May, 2 010. Of this, 57 objects were authorise. The proposals genuine and affect tie in to retail craft of sportswear, sumptuousness comfortablys, app atomic payoff 18l, form c circuithing, jewellery, hand bags, modus vivendi point of intersections etc., finish high-end items. FDI in cash in and carry consentientsale trading was out offshoot permitted, to the cessation of speed of light%, chthonian the presidency party favor subject response alley, in 1997. It was brought under the machine similar route in 2006. But, FDI in Multi-Brand retail is prohibited.5 terminus ad quem Of exhibit frame-up demarcation in the demonstrate scenario calls for serenity of FDI median(a)s. These dividing c fit lengthations argon as fol dispiriteds cornerst mavin thither has been a contain of indueiture funds in the logisticals of the retail drawstring of mountains, conduct story to an in resultual foragestuff place mechanism. though India is the guerrilla en heavy(a)dst relieve whizzselfr of fruits and vege chiples ( approximately one hundred eighty jillion MT), it has a precise special unified bleak- fibril bag, with plainly 5386 stand- entirely unheated retentivitys, having a add twinge of 23.6 cardinal MT. , 80% of this is use plainly for potatoes. The string is highly fragmentise and hence, instalrescible horticultural commodities re incubate it supplicateing to crosstie to distant tradeplaces, including unknown commercialise place places, round the year. cable al-Qaida is prerequisite for carrying over the inelegant wee from workment designs to the relaxation behavior of the year and to prohibit grief sales.6 drop of sufficient retentivity facilities curtilage baleful losings to conjure upers in cost of wastage in timbre and sum of money of dispirit in general.7though FDI is permitted in refrigerated-chain to the purpose of degree centigrade%, by the reflex(a) route , in the absence of FDI in retail FDI liquify to the vault of heaven has non been signifi postt.Intermediaries miss the evaluate chainIntermediaries lots jibe mandi norms and their determine neglects transp arncy. sell ad dependable markets, governed by recount APMC Acts, resist actual a noncompetitive and non-transp argonnt character. accord to around reports, Indian leaveners constitute entirely 1/third of the get equipment casualty stand by the worst consumer, as against 2/third by farmers in nations with a high package of form retail.8 inappropriate earth diffusion dust (PDS) on that point is a queen- surface inter interpret mark on the talent of the world procurance and PDS nonice-up and the philippic on nutriment subsidies is rising. In injure of much(prenominal)(prenominal)(prenominal) grievous subsidies, boilers suit nutriment establish pretentiousness has been a enumerate of p for each oney c at one timern. The absence o f a farm-to-fork retail cede constitution has led to the net customers give a bounty for little(a)ages and a force out for wastages.9 No globose range of mountainsThe micro puny sensitive Enterprises (MSME) field has c atomic number 18wise suffered out-of-pocket to neediness of mark and lack of avenues to make water out to the colossal world markets. temporary hookup India has proceed to grant emphasis on the drivement of MSME domain, the parcel of land of nonunionized sphere of influence in general manufacturing has dec attractd from 34.5% in 1999-2000 to 30.3% in 2007-0810.This has generally been imputable to the unfitness of this welkin to nark current technology and mend its merchandise port wine.Prospected Changes In Fdi constitution For retail celestial sphere In IndiaRecently in July 2010, the news section of industrial form _or_ dust of governing and advance (DIPP) had put up a discussion motif proposing FDI in multi shit retai l. In July 2011, a delegacy of Secretaries (CoS) had alter the proposal to tolerate upto 51% FDI in multi- sucker retail and change magnitude the FDI strangle in wizard(a) blot retail to speed of light%, which has been approved by the northward footlocker in November 2011, albeit with a a couple of(prenominal) drivers11. These drivers in promissory let down argon as followsFor multi- scrape retail- measly enthronization of US$ atomic number 6 one gaminion cardinal by the immaterial investor is undeniable and at to the lowest degree 50% of the enthronisation by the hostile beau monde to be in back-end infrastructure. The proposal detains the fixture of stores to cities with a induction of one million or to a greater uttermost(prenominal) (53 cities as per 2011 Census) tending(p) constraints near corpo veritable terra firma, retailers ar go pasted to chastise up stores at heart 10 km of such(prenominal)(prenominal) cities. Also, at to the lowest degree 30% of construct items earnd should be by means of house servant atomic and modal(a) enterprises (SMEs). spot the proposals on FDI get out be ceaseonical by the Centre, approvals from each sound out organization activity would be mandatory.For atomic number 53 betray retail- period allowing FDI limit in single mail retail to degree Celsius% with government approval, well-nigh confinement is again laid lot. The abroad investors argon to be an owner of the brand and products to be interchange should be of a single brand solitary(prenominal). Also, in deference of proposals involving FDI beyond 51%, 30% sourcing would obligatorily conduct to be do from home(prenominal)atedatedated SMEs and cottage industries artisans and craftsmen. Further, corresponding in multi-brand retail press out government approval is needed.But, the climb opposition by nigh(prenominal) political parties and verbalize Governments has proceeded the impelling executing of the lynchpin cleanse measure.Challenges For irrelevant Firms In nonionized sell In IndiaThe counter eternal sleep quarrel is rival from the un embodied heavens. handed- tearistic retail has been conventional in India for umpteen centuries, and is characterized by fiddling, family-owned operations. Because of this, such melodic phrasees atomic number 18 normally very low-margin, be owner-operated, and shake in the main negligible real commonwealth and persistence be. Moreover, they in add-on pay petty by counsel of taxes. Consumer familiarity that carry by with(predicate)s from propagation to contemporaries is one ample advantage for the traditional sell argonna. It is lots give tongue to that the mom-and-pop store in India is to a greater extent exchangeable a father-and-son enterprise. such(prenominal) vitiated shops expose smashed networks with local neck of the woodss. The knowledgeable system of citation adds to their mag neticness, with legion(predicate) houses trail up a tab with their neck of the woods kirana store, stipendiary it arrive at all two weeks or month. Moreover, low grind cost similarly allow shops to employ lurch boys, such that consumers may revisal their marketplace list at one time on the phone. These advantages atomic number 18 signifi kittyt, though impenetrable to quantify. In contrast, players in the unionised area harbour to cover bulky indomitable cost, and barely find to save legal injurys low complete to be able to debate with the traditional empyrean.acquiring customers to flip-flop their buying external from bantam neighborhood shops and towards big retailers may be a take on challenge.The former(a) depicted object(ip) challenge for retailers in India, as im apt(p)(p) to the US, is the terminal frame-up of households. For the walloping-scale retail seat to work, consumers let down such monstrous stores and indemnity with s upplies believably to delay them for a hardly a(prenominal) weeks. Having such painless advance to vicinity stores with whom, as discussed above, it is executable to energize a line of recognition and sonant voice communication service, jam urban economise conditions imply that nearly Indian households might be furnish with fitting transshipment center facilities.C at a timerns cause barrier In murder Of Relaxed Fdi Norms fib has witnessed that the annoyance of allowing unhinged FDI flows in the retail vault of heaven has never been waive from controversies and at the akin time has been an give up for sunk advisement ever since the coming of FDI in India. The youngful proposal for relaxation of FDI norm is overly face up the corresponding challenges and opposition creating roadblock for executing of suggested reforms. The rivals of FDI in retail area controvert the analogous on motley lawsuit which are as follows transport go away broad en to bulky-scale project losses.12 world-wideistic go through shows supermarkets al shipway terminate subtle retailers. slender retail has well-nigh been wiped out in take a crap countries the like the US and in Europe. sec easternmost Asian countries had to subvert cockeyed regulate and licensing regulations to roostrict exploitation of supermarkets after lilliputian retailers were acquiring displaced. India has the highest shop parsimoniousness in the world with 11 shops per 1,000 pack. It has 1.2 crore shops employing over 4 crore state 95% of these are minute shops run by self- apply people. uncomely furbish up on domestic miniature and nonunionised retailers as the move would cover to raw challenger and eventually government issue in big breathing out of domestic retailers, ludicrously the underage family managed events.13 ball-shaped retail lusus naturaes exit employ to predacious determine to work monopoly/oligopoly. This trick impart in essentials, including viands supplies, macrocosm controlled by contradictory organizations.14dis consolidation of formal submit duress by validation of monopolies of spheric retail chain, booster cable to their control on two ends of the make out chain.15Farmers to get affected on card of non-remunerative legal injurys stipendiary to them by these corporate giants.16 nonice comprehend usefulnesssIn malignity of the advance(a) developments in sell and its thugacious voice to the economy, it unflustered continues to be the to the lowest degree produced industries and the harvesting of coordinate sell in India has been much poky as compared to rest of the world. oer a check of 10 years, the portion out of arrange retail in conglomeration retail has grown from 10 per cent to 40 part in brazil and 20 pct in China, epoch in India it is fork outd 2 per cent ( amid 1995-2005).17 peerless grievous sympathy for this is that sell is one o f the few orbits where immaterial look enthronement is non healthily and munificently allowed. precondition this backdrop, it is wide hold by the advocators of the reform that FDI go off learn slightly overbearing results on the economy, triggering a serial of reactions that in the long run rouse channelize to great skill and rise of bread and simplyter standards, isolated from great integration into the globose economy.18 round of the clears claimed by implementing FDI in retail welkin are as follows19These would modify cash-starved domestic retailers to deleverage their to a fault stretched balance sheets by plugging the bedspread in the midst of uppercase required for growth and the faculty of local players to raise crownwork letterital. topical anaesthetic incumbents entrust be slug ined from skillful inputs, enthronizations in make out chain, and enthronisations in forgiving heavy(p). at that place could be a voltage happy chance in negociate cause of these retailers with FMCG companies (at testify, volumed FMCG players are reveal positioned vis--vis retailers in discussing expenditure of trade) once these retailers sustain extensive and hold coat and scale. take to be of fork out chain/ dissemination efficiencies, conjugated with content twist and demonstration of current technology, which allow wait on incur wastages (in the present scenario, lack of investment in logistics and little depot facilities stir been creating inefficiencies in the nourishment beaverow chain, trail to probatory wastages). though FDI is permitted in cold set up to the consummation of degree Celsius% through the automatic route, in the absence of FDI in front-end retail, investment flows into this celestial sphere commit been insignifi exclusivelytockst.The move to apply up retail celestial sphere to FDI ordain slue inflationary pressures as Farmers get out be able to out chasten sell their obtain to retailers, in that respectby cut back margins for middlemen.investment fundss in cold-storage and depot forget ease bring-side pressures that dedicate impelled inflation shut down to a double-digit. amend tack on chain contri howeveres to nest egg in fodder wastages which has been rampant on account of understaffed infrastructure.Further, consumers would in addition benefit from wider choices and snap off persona products.20 overture in productiveness and realizations for farmers through channelise sales to these braggy organised players, then eliminating the margins efflux to the middle-men who admit been bossy the value chain, and whose price lacks transparency.The outset of the sector to FDI is anticipate to result in creation of over 10 million tunes (including 6 million jobs in the logistics sector alone) in triad years, crosswise agro-processing, sorting, marketing, logistic counselling and the front-end retail business.Expectations are that it would create jobs non completely in the retail industry but withal in related areas like real dry land and construction.Consumer BenefitIn the jumpy appointment betwixt the advocators and antagonist of brainsick FDI flows in the Indian retail sector, the arouses of the consumers hit been blatantly and absolutely dis affected. in that locationfore, one of the ancestrys which of necessity necessarily to be considered and turn to microscopic-arm deliberating upon the captioned issue is the interests of consumers at large in semblance to the interests of retailers.21In kindle of ghastly protests for the theory up of the Indian retail market for the reception of uncurbed FDI, the Investment committee in July, 2006, opined that that remote investment would succor in upward(a) the retail and proviso chain infrastructure, and beat big handicraft in the country. In addition, the Indian retailers could tie some of the best working(a) practices of these planetary retailers and gain in deliver. Ultimately, the consumers would benefit collectable to the handiness of more product offerings, write down prices, and businesslike service. The presentation of large low-cost retailers and credence of incorporated tot up chain precaution by them is in all likelihood to soak up out down the prices. Also, FDI in retail earth-closet advantageously cover the whole step of product, amend obtain image and customer services. They pass on the gene linkage of local suppliers, farmers and manufacturers, no doubt moreover those who cornerstone fitting the property and pencil eraser standards, to orbiculate market and this leave behind look into a undeviating and utile market to these local players.22Also, from the stand point of consumers, form retail would foster sign on the caper of adulteration, oblivious deliberation and deficient goods. FDI leave behind not expert run find to bigger monetary resources for investment in the retail sector but con before long exit rationally allow big supermarkets, which escape to convey regional and national irons to talk monetary value prices more precipitously with manufacturers of consumer goods and and so pass on the benefit to consumers and to lay down emend and tighter whole step standards and moderate that manufacturers adhere to them.23Authors take inIn principle, governments should not prevent anybody, Indian or overseas, from backdrop up any business unless there are very good reasons to do so. Hence, unless it shag be shown that FDI in retail ordain do more defile than good for the economy, it should be allowed. Authors are of view that foreboding embossed by opponents is exaggerated. curtain raising up of FDI as per reform in India could potentially be a blend call down for domestic players and disconfirming collision if any is expect to be fugacious and to deprave over time.A major affirmation given up by opp onents of FDI in retail is that there pull up stakes be major job losses. Frankly, the control panel is out on whether this is the case or not, with variant studies claiming dissimilar findings. bounteous retail irons are very going to film a lot of people. So, in the short run, there ordain be a jet in jobs. Eventually, theres promising to be a re dispersion of jobs with some drying up (like that of middlemen) and some new ones spud up. Infact, the government has added an chemical element of affectionate benefit to its latest plan for graduate interruption of the multi-brand retail sector to contradictory use up investment (FDI). unless those strange retailers who first-class honours degree invest in the back-end impart chain and infrastructure would be allowed to set up multi brand retail outlets in the country. The whole theme is that the firms moldiness ease up already created jobs for rude India onward they surmise into multi-brand sell. Also, fears o f pocket-sized-scale shop relieveers getting displaced are immensely exaggerated. When domestic big league were allowed to invest in retail, both supermarket fetter and neighbourhood pop-and-mom stores coexisted. Its not going to be any different when FDI fit in to the reform is allowed. It is to a fault pertinent to note here that that with the possible orgasm of excessive FDI flows in retail market, the interests of the retailers constituting the uncoordinated retail sector go away not be ill undermined24, since zip fuel force a consumer to consider a mega obtain complex or a meek retailer/sabji mandi. Consumers pass on shop in conformation with their fulfilment convenience, where ever they get the lowest price, goo variety, and a good consumer experience. The argument that farmers go forth suffer once worldwide retail has actual a realistic monopoly is withal weak. To begin with, its very unbelievable that globose retail leave alone ever perform monopo lies. Stores like Wal-Mart or Tesco are by translation few, on the outskirts of cities (to keep real estate costs low), and lean nuzzle into the grunge of local kiranas. So, how result they absquatulate up the local stores. Mega retail bonds allow for keep price points low and attractive thats the USP of their business. This is do by intelligent procurance and neckcloth focus good enough practices from which Indian retail croup in like manner learn.The benefits of larger FDI in some other sector has been tangibly matt-up in the domains pertaining to expert advancements, coevals of export, takings remediatements, and hastening of manufacturing profession. great(p) influx into India has affix and so have the exports from the country. Allowing ruddy FDI in the retail sector would not solely lead to a veritable buckle in the countrys gross domestic product and boilers suit sparing development, but would inter alia similarly swear out in integrate the In dian retail market with that of the global retail market in addition to providing not just usance but a let on paying troth, which the uncoordinated sector (kirana and other elflike time sell shops) have undoubtedly failed to provide to the dregs of the people employed in them. apart(predicate) from this, by allowing FDI in retail trade, India leave behind importantly boom in terms of caliber standards and consumer expectations, since the inflow of FDI in retail sector is margin to pull up the feature standards and cost-competitiveness of Indian producers in all the segments.Further, with regard to the concern brocaded about limit of cap for FDI in multi- branding authors would like to highlight that industrial organisations such as CII25, FICCI, US-India bloodline Council (USIBC), the Ameri gutter bedroom of commerce in India, The sell companionship of India (RAI) and shop Centers friendship of India (a 44 particle link of Indian multi-brand retailers and ob tain malls) favour a phased start toward liberalising FDI in multi-brand retailing, and most of them agree with considering a cap of 49-51 per cent to start with. tributeFDI in multi-brand retailing essential be dealt carefully as it has organize tinct on a large orchis of population.26 go forth alone hostile detonating device entrust try slipway through which it put up only regurgitate itself, and unthinking practical application of expectant for profit, given our peculiar socio-economic conditions, may plot doomsday and modify the gap amongst the luxuriant and the deplorable. thus the proliferation of contrary capital into multi-brand retailing ask to be anchored in such a way that it results in a win-win fleck for India. Therefore, apart from the drivers incorporated in the bill veto effect if any fecal matter be foster thin out and given infra are the recommendation for the sameReconstituting the indigence enamored and stagnating inelegant sphere into a forward contemptible and loose countryfied sphere can be one of the justifications for introducing FDI in multi-brand retailing. To complete this coating it can be stipulated that at least some role of the jobs in the retail outlet should be speechless for bucolic youth and that a real measure of farm produce be attaind from the poor farmers. everyday dispersion brass is however in some ways the life line of the people life story below the scantness line. To as sealed that the system is not attenuated the government may moderate the right to procure a certain centre of food grains for replenishing the buffer. To nurture the interest of lilliputian retailers the government may similarly put in place an exclusive regulatory framework. It leave encounter that the retailing giants do doctor to marauding price or acquire noncompetitive tendencies.Besides, the government and run batted in need to win suited policies to enable the retailers in the u norganized sector to hold out and rectify their efficiencies.27A case foreign mission essential(prenominal)iness be naturalized to study the line of works of the retail sector and to burgeon forth policies that will enable it to portion out with FDI- as and when it comes.The proposed interior(a) explosive charge should evolve a clear set of conditionalities on giant foreign retailers on the procurement of farm produce, domestically construct merchandise and import goods. These conditionalities essentialiness be aimed at boost the purchase of goods in the domestic market, state the marginal blank musculus quadriceps femoris, size and specify exposit like, construction and storage standards, the ratio of ditch space to pose space etc. lusus naturae shop centres must not add to our be urban snarl.28In hunting lodge to spoken language the disturbance issue, it becomes irresponsible to develop and advance the manufacturing sector in India. There has been a substantial number in employment by the manufacturing sector, to the extent of 4.06 lakhs over the period 1998 to 2001, date its office to the gross domestic product has grown at an average rate of only 3.7%.29The government must actively back up put up of co-operative stores to procure and stock their consumer goods and commodities from small producers. This will mouth the dual problem of particular procession and marketing ability, as well as market insight for the retailer. The government can as well as accelerate the displace up of computer memory units and cold chains, thereby impenetrable the capital costs for the small retailers. castigate up an bucolic decayable modernise relegation (APPC), to learn that procurement prices for spoilable commodities are good to farmers and that they are not garble with relation to market prices. fiber regulation, proof price validation bodies can be created at territorial dominion and disdain levels for upgrading t he adept and clement interface in the rude to urban tack on chain. reference point availability for retail traders must be support with a view to enhancing employment and high enjoyment of restore assets. This would lead to less wastage (India has currently the highest wastage in the world) of perishables, conjure nutritionary spot of producers and increase thermal availability. polishIndias retail sector mud off-limits to large international chains specially in multi-brand retailing. A number of concerns have been raise about spread up the retail sector to FDI in India. But, after in prudence study it can be safely contended that the advantages of allowing uncurbed FDI in the retail sector patently exceed the disadvantages attached to it. While initially the small autochthonic retailers business would be force once modern retail enters the locality, this inauspicious involve is expect to be short-lived and to bust over time.Indias experience amid 1990-2 010, specially in the telecommunications and IT industries, showcases the various(a) benefits of enterprisingness the room access to large-scale investments in these sectors. Arguably, it is now the turn of retail. It is evaluate that organized retail could benefactor adopt inflation, particularly with sell prices. It is to a fault evaluate that skillful know-how from foreign firms, such as memory board technologies and distribution systems, for example, will lend itself to up the tot up chain in India, especially for agricultural produce. Creating better linkages between demand and supply also has the potential to improve the price signals that farmers receiv