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LATEST NEWS UPDATES | Farmer groups back FDI in multi-brand retail: Anand Sharma

Farmer groups back FDI in multi-brand retail: Anand Sharma

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published Published on Dec 3, 2011   modified Modified on Dec 3, 2011

-The Times of India

 

A delegation of farmers from north India met commerce industry and textiles minister Anand Sharma on Saturday and backed the government's move to allow 51% foreign direct investment in the multi-brand retail sector.

The farmers said the policy removes middleman and will bring better prices for the farmer's products. They said a progressive move that is expected to benefit the farm economy should be supported.

"As far as FDI is concerned, farmers have welcomed it and they want the government to stand firm because they feel that it is in their interest. There will be investments that will lead to creation of infrastructure, warehousing, cold storage and generate employment and they will get a good price for their produce," Sharma told reporters after his meeting with the farmers' delegation.

The government has met traders and others groups and have explained the rationale for the policy. The Cabinet decision has met with stiff opposition as political parties have slammed the government move saying it will lead to massive job losses.

Sharma said the decision to allow FDI in the multi-brand retail sector had been taken after wide-ranging consultations with all stakeholders.

"It is unprecedented. We are a constitutional democracy and this should not have happened. We have done it after consultations, trying to generate an understanding and a consensus. There are some states who do not want it who are at least not ready for it. We respect their rights but the states who do not want it cannot deprive those states who want it," Sharma said referring to the political opposition to the Cabinet decision.

The policy has evolved after a process of intense stakeholder consultation that began on July 6 when a discussion paper was floated by the ministry. Comments from a wide cross-section of stakeholders, including farmers' associations, industry bodies, consumer forums, academics, traders' associations, international investors, were analyzed in depth before the matter was discussed by the Committee of Secretaries on July 22. Sharma had unveiled broad contours of the policy in the Rajya Sabha on August 3.

"The Consortium of Indian Farmers Association, All India Vegetable Growers Association, Bharat Krishak Samaj and Shetkari Sangathana have lent their support to the government policy," a statement from the ministry said.

The Times of India, 4 December, 2011, http://timesofindia.indiatimes.com/business/india-business/Farmer-groups-back-FDI-in-multi-brand-retail-Anand-Sharma/articleshow/10975096.cms


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