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This has reference to the article “Opening the Black Box” (Business Line, May 24).

The article mentioned that organised retail can promote food security for the urban poor and dampen food price inflation.

Formation of agri prices takes place among the set of entities comprising the wholesalers, processors and the retailers — the ‘black box’ between farmer and consumer.

It was found that in the urban areas the goods bought from organised retailers were cheaper than those bought from traditional retailers — vegetables 33 per cent, sunflower oil 17 per cent, fruits 15 per cent, parboiled rice 14 per cent, mustard oil 6 per cent, atta 5 per cent and channa dal 1 per cent.

Economies of scale in mass procurement, distribution through modernised centres, etc., can create price advantages that, combined with cost-cutting procedures can reduce inflation.

Contribution of organic agriculture to food security is also of great importance in attaining the multiple objectives of production of high-quality goods, farmer empowerment, household nutrition and sustainable management of natural resources.

T. V. Jayaprakash Palakkad

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