While barter would be considered to be the oldest form of retail trade, since independence, retail in India has evolved to support the unique needs of our country, given its size and complexity. Haats, Mandis and Mela’s have always been a part of the Indian landscape. They still continue to be present 'in most parts o[ the country and form an essential part of life and trade in various areas.
1. Traditional Indian Retail-Some Facts:
• Haats: Haats are periodic markets that form a major part of the rural market system in India. This is a location which witnesses a public gathering of buyers and sellers at fixed times and at fixed locations.
Some interesting facts about Haats are:
Average sale per day: Rs. 2.25 lakh
Number of sales outlets per haat: 300
Number of visitors per haat: 4,500
Average sale per outlet: Rs 900
Villages covered by a 'mat: 20 – 50
• Melas: Melas are fairs, and they can range from commodity fairs to religious fairs. Virtually every state in India has melas for which it is known; it is estimated that more than 25,000 melas are held annually in the country. It is also estimated that the average outlets in every mela would be more than 800 and the average sale per mela would be Rs.1431akh.
• Mandis: Mandis are market set up by the state government for the sale of agricultural produce directly from the fanners. Close to 6,800 Mandis exist in India and are believed to cater to a population ofl.36Iakh.
The PDS or the Public Distribution System would easily emerge as the single largest retail chain existing in the country. The evolution of the public distribution of grains in India has its origin in the 'rationing' system introduced by the British during World War II. The system was started in 1939 in Bombay and subsequently extended to other cities and towns. By the year 1946, as many as 771 cities/towns were covered. The system was abolished post war, however, on attaining Independence, India was forced to reintroduce it in 1950 in the face of renewed inflationary pressures in the economy.
The system, however continued to remain an essentially urban oriented activity. In fact, towards the end of the first five-year plan (1956), the system was losing its relevance due to comfortable food grains availability. At this point in time, PDS was rell1trooucedand other essential commodities like sugar, cooking coal, and kerosene oil were added to the commodity basket of PDS.
The Khadi & Village Industries (KVIC) was also set up post Independence. Today, there are more than 7,000 KVIC stores across the country. Retail Snapshot 2.2 focuses on the growth of KVIC as an Indian retailer. The co-operative movement was again championed by the government, which setup the Kendriya Bhandars in 1963. Today, they operate a network of 112 stores and 42 fair price shops across the country. Mother Dairy, another early starter, controls as many as 250 stores, selling foods and provisions at attractive prices. In Maharashtra, Bombay Bazaar, which runs stores under the label Sahakari Bhandar and Apna Bazaars, runs a large chain of co-operative stores.