No Place for Street Vendors in India: The Erosion of Local Markets and the Rise of Rent-Seeking Hubs

In India, the bustling streets and vibrant markets have long been the lifeblood of local economies. Street vendors, small traders, and informal markets have historically provided affordable goods and services to millions, while also offering livelihoods to those who might otherwise be excluded from the formal economy. However, in recent years, the landscape of small-town markets in India has been undergoing a troubling transformation. Market complexes, once thriving hubs of commerce, are increasingly being converted into rent-seeking hubs, where small vendors are forced to pay exorbitant fees to survive. This shift is not only undermining the financial autonomy of small vendors but also transferring ownership and control of these spaces to the wealthy and politically connected.

The Case of Bhadrak: A Microcosm of a Larger Problem

Bhadrak, a small town in Odisha, offers a poignant example of this transformation. A year ago, the fish market in Bhadrak was located near the city center, within walking distance for most residents. It was a bustling, accessible space where people could easily purchase fresh fish. However, in the name of solving traffic congestion, the local authorities decided to widen the roads. While road widening is often touted as a solution to traffic problems, evidence from around the world suggests that it rarely achieves its intended goal. Instead, it often leads to increased car usage, higher emissions, and the displacement of local businesses.

In Bhadrak, the road-widening project did little to alleviate traffic. Instead, it displaced the fish market to a location 1.5 kilometers away from the city center. For many residents, this meant that shopping for fish was no longer a simple walk but required a bike or other means of transportation. The fishermen, who had traditionally sold their catch by the roadside, were left with no choice but to relocate to the new, less accessible market.

The Supermarket Model: A False Solution

The situation worsened when the local authorities decided to move the fish market to a newly constructed supermarket, located a staggering 5 kilometers from the city center. This supermarket, built in an isolated area with no nearby settlements, was touted as a modern solution to the problem of informal markets. However, the reality has been far from ideal.

To secure a spot in the supermarket, vendors are required to pay an initial fee of Rs 21,000, followed by a monthly rent of Rs 1,000. These costs are prohibitively high for many small vendors, who operate on thin margins. Moreover, the rent is subject to the whims of politicians, who can increase it at any time. This rent-seeking model has effectively transferred ownership of the market space to the wealthy, leaving small vendors with no financial autonomy.

A Male-Dominated Space: Excluding Women from the Market

The relocation of Bhadrak’s fish market to a remote supermarket has created a male-dominated buyer base, disproportionately excluding women due to societal restrictions on their mobility and the market’s inaccessible location. In a culture where women often face barriers to traveling long distances, the 5-kilometer journey to the isolated supermarket is impractical and unsafe, forcing many to rely on male family members for shopping. This shift has marginalized women from a space where they once actively participated as buyers, undermining their role in household decision-making and community interaction. The new market, devoid of the vibrancy and inclusivity of the old one, highlights how urban planning that overlooks gender dynamics can deepen existing inequalities and exclude women from public and economic life.

Low Sales and Dystopian Shopping

Despite the authorities' claims that the supermarket would modernize the market and boost sales, the reality has been quite the opposite. The remote location has deterred customers, and the market lacks the vibrant atmosphere that once characterized the old fish market. Sales are low, and the fish sold in the supermarket are not as affordable as they were in the informal market. For many residents, the new market is not a convenient shopping destination but a dystopian reminder of how urban planning can fail to meet the needs of the people.

The Need for 15-Minute Cities

The situation in Bhadrak is not unique. Across India, small towns and cities are witnessing the erosion of local markets and the displacement of street vendors in the name of modernization and development. However, this approach is fundamentally flawed. Instead of creating isolated, rent-seeking hubs, urban planners should aim to build "15-minute cities," where essential services and markets are within a 15-minute walk or cycling ride from people's homes. Such an approach would not only make cities more livable but also ensure that small vendors can continue to thrive.

Conclusion

The displacement of street vendors and the conversion of markets into rent-seeking hubs is a troubling trend that undermines the economic autonomy of small vendors and excludes large segments of the population from accessing essential goods and services. The case of Bhadrak is a stark reminder that urban development must be inclusive and responsive to the needs of all residents, not just the wealthy and powerful. If India is to build cities that are truly livable, it must prioritize the needs of its street vendors and small traders, who have long been the backbone of its local economies.