Walmart Foundation to invest Rs 180 crore in Indian producers over the next five years

By

Isabelle Crossley

Published
Sep 27, 2018

The Walmart Foundation has pledged to invest Rs 180 crore ($27 million) in Indian farmers and Walmart India will separately increase its direct sourcing from farmers to 25 percent which will reduce transportation costs.

Walmart has experienced heavy criticism for both its own India expansion and its acquisition of Flipkart from a number of traders’ bodies including the Confederation of All India Traders (CAIT) that has organised several pan-India protests against the US business.

Although the Union Government was convinced by Walmart that its acquisition deal would not adversely impact domestic production of products ranging from textiles to foods, many famers feared otherwise. In an attempt to show its commitment to Indian farmers and domestic production, Walmart will work to improve farmers’ income, according to a statement by the business.

Walmart India will increase direct sourcing from farmers to 25 percent of total sourcing. This will create business opportunities for farmers and cut down on Walmart’s transportation and logistics costs. This will be facilitated over the next five years and will pertain to the business’ Cash and Carry stores which sell products including makeup, personal care items, and groceries.

The Walmart Foundation will invest Rs 180 crore in a separate venture in order to deepen its commitment to Indian farmers, according to the organisation. This constitutes an expansion of the foundation’s current work to raise rural incomes through working with farmer producer organisations.

The funds will help such organisations develop knowledge of sustainable farming practices, business practices, and improve access to finance services.