Press Information Bureau

Government of India

Ministry of Commerce & Industry

03-December-2011 17:55 IST

A large delegation of farmers from North India met the Union Minister of Commerce Industry and Textiles Shri Anand Sharma, here today, to register their support for the Government’s decision to allow 51 per cent FDI in retail sector. The farmers expressed their happiness that the policy removes middleman and aims to bring better prices for the farmer’s products. They also appreciated the fact that the government kept the farmers on the loop and worked for their benefit while bringing this important policy. Farmers informed the minister that current agrarian economy is exploitative for farmers and middleman corners all the profit. A progressive measure like FDI in retail should be supported. The also said that in case of undue pressure being applied against the policy, they will be constrained to come out on streets in its support.

Shri Anand Sharma told the mediapersons after the meeting “as far as FDI is concerned, farmers have welcomed it and they want the govt to stand firm because they feel that it is in their interest. there will be investments which will lead to creation of infrastructure, warehousing, cold storage and generate employment and they will get a good price of their produce” on the political opposition to an executive decision, Shri Sharma said “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”

The policy has evolved after a process of intense stakeholder consultation which commenced on 6 July 2010, 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 deliberated by the Committee of Secretaries on July 22, 2011. On August 3, 2011 the Minister explained the broad contours of the policy in the Rajya Sabha. Organizations like Consortium of Indian Farmers Association, All India Vegetable Growers Association, Bharat Krishak Samaj and Shetkari Sangathana have come out in support of the policy.

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Foreign investment in retail supported by farmers to remove middlemen and bolster infrastructure, prices, and market access. Farmers endorsed the government's decision to permit foreign investment in retail, arguing it will remove exploitative intermediaries, improve farm price realisation, and bring investment in infrastructure such as warehousing and cold storage; they warned that undue pressure against the policy could provoke street protests and stressed the policy followed extensive stakeholder consultation while the government recognised differing state positions but maintained implementation where desired.