Industry minister Nurul Majid Mahmud Humayun has apparently posed an innocent question, if large conglomerates produce muri (puffed rice) and chanachur (spicy snack mix), what will small entrepreneurs do? Indeed, corporate business culture has over the past few years bloated beyond the known boundaries to aggressively penetrate the production system at the grassroots and microeconomic level. But this is a distorted corporate culture where farmers and small manufacturers are either deprived of their rewards or profits or face an unequal competition. The business sharks are now on the lookout to devour the small fries. There is not enough legal protection against such attempts to monopolise business and market -- one of the reasons behind market manipulation.
In the United States of America, such moves or acts are considered corporate malfeasance and even the internationally reputed companies are held accountable for any such business digression. Companies like Google, Microsoft, Apple were summoned to appear before the congressional committee where their CEOs were grilled by Congressmen. When smaller companies come up with innovative and superior allied products, the corporate giants simply buy the smaller entities to cut short the challenges posed by the former. They offer a price which the smaller enterprises cannot refuse.
In Bangladesh where research, innovation and development are limited and hardly encouraged, the propensity of large companies is to focus on areas where an array of homemade traditional snacks, foods, pickles and sauces including those of tomato, tamarind and kasundi (made from mustard seeds) completes the cuisine culture. Or, how can one explain the commercial mass production of 'jhal muri' (pepper- and snack mix-treated puffed rice)? Also, green legumes are mass produced and packaged. In a way, the large companies' involvement with production of different traditional snacks has posed a threat to the individual 'ghati-garam (pot kept warm) chanachurwallah' who makes his daily round in the afternoon at crowded places in cities and towns or in busy street corners.
The industry minister has not elaborated how the aggressive corporate infiltration at the grassroots level has harmed microeconomic and small and cottage industry. There is no harm if the large companies invest in agribusiness for diversification of crops and boosting production. However contract or corporate farming has its danger also as it takes away farmers' right to cropping leading to monopolistic agriculture. In Bangladesh, though, the big corporate houses are more interested in procuring crops and fruits from farms and orchards either to produce the finished products or simply process those for packaging.
Is it legally permissible to package rice, including the aromatic, procured from millers with brand names? This does not add much value except ensuring bigger margin of profits for the companies. Let the corporate houses doing food business focus on export of their products. Following the readymade garments, the next sector going strong in terms of demand from abroad is that of foods and soft beverage. That way there will be a far greater value addition to agriculture produce. At the same time, perishable produce like tomato, pineapple, mango, guava, water melon can be saved from going waste in peak season. If quality juice, jam, jelly and any innovative product can be produced, those will fetch not only hefty profit for manufacturers but also revenue for the country.
Better it would be to diversify the production base in other areas. Walton has set an example of how the technology can be used for remodelling and tuned to various needs with the price tag remaining highly competitive. When invention proves to be a far cry, the best option is to take advantage of the available scientific knowledge and technology to produce gadgets that are not as good as the original but offering much of the services at an affordable cost. For example, an iPhone has features that are unrivalled but few can afford such a smartphone. So, Chinese and South Korean companies have facsimiled many of the features in their sets never to match those of an iPhone but to be convenient enough for people who cannot afford the landmark phone. This is where business has high potential and big companies should think big instead of focusing on snack mix.
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