UP CM Yogi asks Walmart to create synergies with traders, farmers

Urges US retail giant to aid global branding of UP's horticultural crops

Uttar Pradesh chief minister Yogi Adityanath has asked US retail giant Walmart to create synergies with local traders and farmers for mutual benefit.

Adityanath said the company should proactively engage with traders and farmers for seamless business operations and leverage the vast agricultural potential of the state. Recently, Walmart had bought a majority stake in Indian ecommerce major Flipkart.

The chief minister advised Walmart, which has already announced plans to expand its cash-and-carry operations in India and hike its local farm procurement, to help in the global branding of the state horticultural crops, including mango and guava, so that farmers get remunerative prices and consumers enjoy quality products.

Last evening, Walmart International President and CEO, Judith McKenna, and Country President and CEO, Krish Iyer, had called upon the CM here to brief him about the company’s activities in the state.

Adityanath said while UP itself had a consumer base of 220 million, the state could serve as the virtual gateway for an overall consumer market of almost 300 million owing to its proximity to Bihar and Nepal, and the traditional trade and commerce ties it shared with the two regions.

Meanwhile, the CM reiterated his government’s focus to double farm income and the pole position that UP enjoyed in various agricultural and horticultural crops, such as wheat, paddy and potato. He said the state had unlimited potential in food processing owing to high farm productivity and a large consumer base.

McKenna informed him that Walmart was planning to increase its commercial footprint in UP and launch more outlets, to partner the state in its development journey. She underlined the company would work closely with the state farmers for their economic empowerment even as she lauded the policies of the government.

Walmart has announced to more than double its standard Best Price Modern Wholesale stores from 21 at present to about 45 in 3 years. Besides, the company plans to source more farm produce to engage with farmers and facilitate lucrative prices. Currently, agri produce account for 20% of Walmart’s total procurement in India with large number of farmers linked in the backend value chain.

Walmart has projected to launch 12 stores each year over the next few years across different geographies in India especially UP, Punjab, Haryana, Andhra Pradesh, Telangana, Maharashtra etc. In UP, it targets to launch 15 new stores in 5-7 years covering all the major cities, including Gorakhpur, Varanasi, Moradabad, Kanpur, Ghaziabad, Saharanpur etc.

Meanwhile, the Walmart team today visited a village on the outskirts of Lucknow to engage with farmers. Walmart Foundation has planned to invest Rs 1.8 billion to improve farmer livelihoods over the next 5 years. Additionally, Walmart will grow its direct sourcing from farmers to 25% for hawking through its wholesale stores.