Indian farmer and Industrial Alliance (IFIA), a joint venture of Consortium of Indian Farmers Associations (CIFA) today said the Government move to allow 51 per cent FDI in retail will be helpful to the farm community as it would provide backward and forward linkages.
Contrary to the general perception that this would be detrimental to the interest of farmers, it will help them in establishing producer groups and supplying them to retailers directly. More importantly it will eliminate middlemen at various levels in the chain, Mr P. Chengal Reddy, Secretary General of CIFA, said.
He said that no MNC can take a farmer for a ride as he knows how to tackle such a situation. Addressing a press conference here today along with the Chairman of CII, Andhra Pradesh, Mr Jay Galla, and Mr T.T. Ashok, Chairman CII South (over conference call), Mr Reddy felt that several politicians have begun to oppose this as if they were the protectors of interest of farmers.
Agriculture sector
Instead of focussing on retail FDI, which would do good, they should work on other aspects particularly opening up of the agriculture sector and its produce.
“Agriculture is the most protected sector in the country, where over 60 per cent of the population is dependent upon. Politicians are worried about few lakhs of small stores while the future of large population and their produce is dependent on this move as it would fetch better returns eliminating middle men,” he said.
Far-reaching impact
Mr Jay Galla said the CII would take it up with various State Governments and see that this is implemented as it would have far-reaching impact on the retail sector in the country and also the end consumer.
Citing the example of Brazil and China where similar initiatives were taken, he said it has strengthened the retail sector and increased investment, which is beneficial to the consumer.
Mr Ramesh Datla, Chairman of CII National MSME Council, said that this would augur well for small and medium enterprises as 30 per cent is to be procured from them.