Farmers, a holy-cow constituency considered more valuable than small traders to the political class, have begun to ask uncomfortable questions to those opposing foreign direct investment (FDI) in retail. Several farmer groups, some of them led by politicians with ties to the Congress, have asked why some parties are standing in the way of a measure that is expected to reduce the clout of middlemen and increase farm earnings. Although Prime Minister...

Large farm lobbies are backing the government's decision to allow foreign supermarkets to set up shop in the country, saying it will shorten the supply chain and get growers a larger share of the final selling price.  Most farmers, however, want the government to go a step further and make it mandatory for retailers to buy 75% of their produce directly from farmers, bypassing the restrictive 'mandi' auction system.  "Traders and middlemen...

In the winter of 2009, Vilam Singh, a young tribal farmer from Chhattisgarh's Kawardha district, applied for 100 rupee-a-day work under MNREGA, the rural job scheme.  One year later, the same below-the-poverty line farmer bought land worth 3.36 crore rupees in another district, Janjgir Champa.  What explains the sudden turn of fortune?  "He did not turn rich overnight. He was simply roped in to act as a front by a power company that...

-The Economic Times The entire political opposition to allowing overseas investment in retail is focused on the assumed plight of traders and small merchants in India. How about consumers, who outnumber sellers by many multiples? And what about farmers, the bulk of India's population? The idea of organised retail is to get quality stuff to buyers at reasonable prices. To do that, retailers employ technology, storage and logistics to cut overhead...

In the backdrop of political uproar over government’s decision to allow FDI in retail, N C Saxena, member of National Advisory Council (NAC), on Wednesday said there was no economic rationale against the decision and the opposition to it is guided by political whims. “Opposition to FDI in retail is based on political whims which has no economic rationale,” he said. Saxena reasoned that FDI in retail would only incentivise efficiency and...