Govt must protect Kiryana retail sector

22 September 2024

Follow Ziraat Times on Whatsapp - Join Now

The rapid expansion of e-commerce in India, projected to surpass $350 billion by 2030, poses a significant threat to the traditional Kiryana stores that form the backbone of our retail sector. As noted in the Economic Survey 2023-24, modern retail’s share, including e-commerce, is expected to rise dramatically to 30-35% of the total retail market in the next 3-5 years. This shift is more pronounced in states like Jammu & Kashmir, where local livelihoods are intricately linked with small retail businesses, deeply embedded across both rural and urban areas.

Kiryanas are more than just shops; they are part of our cultural and social life. Local retailers often know their customers personally, which adds a level of service that no online giant can replicate. However, the convenience and competitive pricing offered by e-commerce platforms like Amazon and Flipkart are undeniably attractive, particularly to the younger demographic, thereby pulling the rug from under traditional retailers’ feet.

The concern is not just about cultural erosion but the significant impact on jobs and livelihoods. Kiryana shops employ a vast number of people across India, including J&K. As these small shops face closure due to the inability to compete with the technological and logistic might of e-commerce giants, these jobs are at risk without equivalent new employment opportunities being created in the rural and semi-urban areas these stores service.

Moreover, while e-commerce offers variety and convenience, it lacks the community engagement and support that Kiryanas provide. During crises, local stores often extend credit lines and support to the neighborhood, something that is unheard of in the digital marketplace. The personal touch, the credit facilities during tough times, and the immediate availability of goods are vital during emergencies, underlining the indispensable role of Kiryana stores.

Indeed, some Kiryana stores are adapting by leveraging digital tools, such as UPI payments and partnerships with e-commerce platforms. The Open Network for Digital Commerce (ONDC) initiative is a significant step in helping smaller players participate more equitably in the digital economy. However, these adaptations require resources and knowledge that many small retailers do not possess.

It’s crucial that any further technological advancement or policy development, such as the Digital India program or the new foreign trade policy, includes provisions that support and protect these traditional businesses.

Additionally, policies must ensure that e-commerce growth does not come at the cost of traditional retail jobs. For instance, imposing regulations that require e-commerce platforms to contribute to a fund that supports small retailers and their employees could be one way to mitigate the impact.

To preserve the fabric of our local economies, particularly in culturally rich states like J&K, there must be a concerted effort from both the government and the community to support Kiryana stores. As we embrace the convenience of digital commerce, let us not forget the value of human connections and the critical role these small shops play in our lives and livelihoods. The future of retail in India should not be a zero-sum game but a more inclusive one that preserves the best of both worlds.