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LATEST NEWS UPDATES | FDI in retail will harm small farmers, says agri marketing body

FDI in retail will harm small farmers, says agri marketing body

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published Published on Mar 5, 2012   modified Modified on Mar 5, 2012
-PTI

State agriculture marketing boards today said FDI inmulti-brand retail will harm farmers, particularly small and marginal peasants.

"Farmers are certainly going to be affected if FDI into multi-brand retail is given a go-ahead. It will mainly cause concerns to small and marginal farmers who have less than four hectares of land," the National Council of State Agricultural Marketing Boards (COSAMB) Managing Director S S Randhawa said while addressing a farmers' meet on the issue organised by CII here today.

Noting that foreign direct investment (FDI) into multi-brand retail would come with only "profit motive", he said the presence of foreign retailers in the sector would create a monopolistic situation that would yield lower realisations to farmers.

"Purchasing will be at low prices, while selling will be at higher rates. As a result, farmers will not greatly benefit from the arrangement," he said.

He further said buying of only high-quality farm produce through contract farming arrangements would have a negative impact on other farmers who could be harassed to become part of the foreign retailing system.

"The sudden halt of procurement of a particular crop by a retailer from a farmer will also lead to a vacuum as there will be no other alternative for the farmer at that time to produce another crop," he said.

Randhawa said that retailers must purchase commonly-grown crops only through contract farming at a price linked with market rates.

COSAMB has a mandate to bring efficiency in agricultural marketing system.

The Economic Times, 3 March, 2012, http://articles.economictimes.indiatimes.com/2012-03-03/news/31119534_1_multi-brand-marginal-farmers-contract-farming


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