Farmers' to take on Wal-Mart in India

By Krittivas Mukherjee

MUMBAI (Reuters) - Indian farmers and traders, opposed to the entry of private retail giants such as Wal-Mart, are building a chain of superstores as part of efforts to sell their produce directly and stop prices being set by a few big players.

The effort is being backed by authorities in the western state of Maharashtra, which says infrastructure costs for the project could be subsidized.

"It's a viable idea to counter private players, and if everything goes to plan the first of the superstores can come up in a few months," Sunil Pawar, general-manager of Maharashtra's agriculture marketing board, told Reuters.

"We are talking to the farmers' cooperatives and traders and the government is very supportive of the idea."

Fearing the loss of livelihood, traders, farmers and small shopkeepers oppose plans by foreign and local companies to introduce western-style supermarts into India's fragmented $350 billion market, expected to double in size by 2015.

Farmers worry the influx will lead to prices being dictated by a handful of large retailers.

Their protests reflect wider social tensions in the fast-growing Asian giant, where private investment is frequently opposed by traders scared of new retail competition and villagers worried their land will be taken for factories.

Maharashtra's farmers are hoping they can take the fight to the private giants with their superstores and chain of outlets that can sell vegetables, fruits and a range of farm products.