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LATEST NEWS UPDATES | Punjab: Politicians, Farmers Divided Over FDI Issue

Punjab: Politicians, Farmers Divided Over FDI Issue

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published Published on Sep 26, 2012   modified Modified on Sep 26, 2012
-Outlook

Amid furore over FDI in multi-brand retail, the politicians and farmers in the leading agrarian state of Punjab are speaking in different voices over the issue.

While Chief Minister Parkash Singh Badal said the concept may be successful in developed countries like USA, he feared that it may not work in this country.

"If the FDI comes, big players will eat into the share of small traders and that will be against the idea of social welfare," 84-year-old Badal said while interacting with reporters in Sirsa.

He was in Sirsa, Haryana, yesterday to inaugurate a hospital in the memory of former Deputy Prime Minister Devi Lal on the departed leader's birth anniversary.

However, speaking on the Centre's decision to allow up to 51 per cent stake in the multi-brand retail sector to foreign firms, Badal's son and Deputy CM Sukhbir Singh Badal said the issue was a very important one as there were a number of stake holders.

Sukhbir said in Mansa, Punjab, that the UPA government should have taken into confidence all stakeholders before taking this important decision.

"If a consensus can be built now, no one will have an objection. But a consensus over the issue in entire country is a must," Sukhbir, who is president of the Shiromani Akali Dal, which returned to power in January this year in alliance with the BJP, said.

"The interests of small farmers and traders must be safeguarded," Sukhbir asserted.

Sukhbir Badal's comments on FDI assume significance in the wake of opposition by his party's ally BJP, which is totally opposed to it. Punjab Congress president Amarinder Singh has accused Sukhbir of taking a U-turn after having earlier written a letter to Union Commerce Minister Anand Sharma in support of the concept.

Punjab Mandi Board head Ajmer Singh Lakhowal had yesterday welcomed the allowing of FDI in multi-brand retail, saying it will benefit the farmers.

"It will be good for the state, particularly the farmers," Lakhowal, whose Board manages all the grain and vegetable markets in the state besides funding the maintenance of roads in Punjab's rural areas, said.

"The big firms will purchase directly from the farmers and this will also help to diversify the farm sector," he said, adding that intermediaries will be wiped out.

Lakhowal, who is also President of BKU (Lakhowal), claimed that the majority of farmers supported FDI in retail.

However, president of another farmers' body, BKU (Rajewal), B S Rajewal, claimed that it was only initial euphoria and hype being created around FDI.

"The farmers are not going to gain anything out of this. It is just a big talk, nothing else. The step will destroy our marketing system and the talk that farmers will earn big bucks is just a sham. A large number of farmers are poor, with loans on their heads and with small land holdings. What are they going to gain?" Rajewal asked.

His organisation will oppose the FDI "as it is anti-farmers," he said.

"If our policies are right, we can prevent wastage of fruits and vegetables here. We can improve our system," Rajewal said.

In neighbouring Haryana, the state government has said allowing direct purchase of horticulture produce and setting up of primary processing facilities by private players will help farmers gain from foreign investments in the sector.

"Allowing direct purchase of horticulture crops from farmers and setting up of processing facilities, will set the foundation of FDI in retail," Chief Administrator of Haryana Agricultural Marketing Board, T V S N Prasad, said.

However, Om Prakash Chautala, president of main opposition party INLD, said they will oppose any move by the state government to allow FDI in multi-brand retail as it will "destroy small traders and farmers."

Outlook, 26 September, 2012, http://news.outlookindia.com/items.aspx?artid=776345


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