Supermarkets, Smallholders and Livelihoods Prospects in Selected Asian Countries

Abstract

Recent literature (Reardon et al., 2003; Reardon et al., 2004; Swinnen, 2005, 2006; Trail, 2006; von Braun et al., 2005) has drawn attention to the speedy rise of supermarkets in different regions of the developing world and forecast their rapid spread. The emergence of supermarkets has transformed agrifood markets, but at different rates and to a different extent across regions and countries. This transformation is a challenge for smallholders.¹ While the risk of the exclusion of smallholders is real, it is argued that there are opportunities as well.

This study has been prepared under the overall guidance of Thomas Elhaut, Director, Asia and the Pacific Division, IFAD. The econometric analysis has been competently carried out by Raj Bhatia. The study has also benefited from discussions with Alain de Janvry, D. Byerlee, M. Ryan, P. Mudbhary, Vani S. Kulkami and K. Imai and the valuable research assistance of Valentina Camaleonte and Sundeep Vaid. The present version has also benefited from the constructive suggestions of two reviewers, Raul Hopkins and Raghbendra Jha, and participants at 60 Years of India’s Independence conference, organised by Australia South Asia Research Centre, Australian National University, Canberra. The views expressed are, however, personal, and any deficiencies that remain are the responsibility of the authors.