Whether one likes it or not, FDI in retail is going to directly impact Indian agriculture in a big way.
Some feel that change is for good, while the others complain that it will hit farmers very badly and lead to ‘Wal-Mart Phenomenon'.
Small and marginal farmers are not yet aware about the development and its impact on the farm sector.
Mr Nani of Matysapuri in West Godavari district, who has lost this kharif season as he observed crop holiday, is one such farmer. He is perplexed whether the FDI decision by the Union Government would help him or further sink him in problems.
Mr S. Malla Reddy, Vice-President of CPM-affiliated All-India Kisan Sabha, sees a big threat to farmers in India.
“As it is they are not getting MSP (minimum support price) on several crops. If you allow multi-national companies with huge capital, they will call shots and decide at what price farmers should sell,” he said, reacting to the FDI decision.
“MSPs itself are not protecting cost of production for farmers. Instead of protecting farmers from market forces, the Government is exposing them further. This will hit the farm sector very badly,” he said.
Wal-Mart Phenomenon
Mr Kiran, who runs non-governmental organisation Asha that works with farmers, warns of the repeat of Wal-Mart Phenomenon in India.
“They move to sources that offer them the cheapest produce. They would control the entire supply chain right from farm inputs like seeds to the final produce. This ultimately will put huge pressure on farmers, particularly small and marginal farmers,” he said.
The opinion, however, is divided. There is a section of farmers which feel that the move would help farmers discover higher prices and organise themselves into producers' groups.
Consortium of Indian Farmers' Associations (CIFA), which is promoting formation of commodity-wise groups, says that the move would bring in a sense of quality.
Mr P. Chengal Reddy, Secretary-General of CIFA, feels that the decision would bring in standardisation of farm produce as big retail players would go to farmers and tell them about the quality requirements that includes better handling of produce at farm gate, reducing post-harvest losses.