In India, Wal-Mart Goes to the Farm

         Despite the fact that government and its policy do not allow Wal-Mart Stores to sell directly to consumers. In the past two years, Wal-Mart establishes a good relationship with farmers in India, trying to open this market where modern stores make up just 5 percent of the country’s retail industry. Wal-Mart operates in India through a 50-50 joint venture with Bharti Enterprises. Their partnership, known as Bharti Wal-Mart, supplies retail stores that are fully owned by Bharti and runs a wholesale store that sells to shopkeepers, hotels and other businesses.

        Wal-Mart has succeeded their relationship with the framer. Many farmers in India say they like working with the company. It typically pays them 5 to 7 percent more than they earn from local wholesale markets and they don’t have to worry about the transportation. Other farmer state that his yields have risen about 25 percent since he started following farming advice from the company and its partner, Bayer CropScience. And other said they trust Wal-Mart because Wal-Mart has been paying on time. We would just like them to buy more

        Wal-Mart relationship with the farmer and supplier had set up its supply system in the India. It is the relationship that Wal-Mart trying to built with farmers and suppliers give them good supply and distribution center. Farmers are more willing to provide their product to Wal-Mart, because it is Wal-Mart that helps them to increase their margin.

http://www.nytimes.com/2010/04/13/business/global/13walmart.html?pagewanted=1&sq&st=nyt&scp=2