Congress-ruled Kerala will take some more time to accept FDI in multi-brand retail, Food and Consumer Affairs Minister K V Thomas said today.

In a bold decision, the government has implemented its decision to permit 51 per cent foreign direct investment (FDI) in multi-brand retail despite stiff political opposition.

“States like Kerala are not accepting this policy. The state will take some more time,” Thomas told reporters on the sidelines of an event here.

Asked if he would convince the state government to implement the policy, he said: “It takes its own time. When computer came, it was opposed by Kerala. When mobile phones came, it was again opposed. Later, it was accepted.”

The centre is not imposing its decision on any state to implement the FDI policy. States are free to take their own decision on the issue, he said.

Stating that there are apprehensions among small traders and distributors about the policy, Thomas said that a committee, headed by him, will study in detail all the issues facing small traders and come out with a solution.

“A committee has been formed. I am the chairman of the committee. We will go through in detail all problems. We will find out a solution,” he said.

He said that the government’s aim is to ensure better price to farmers and reasonable price of farm items to consumers. “States like Haryana have welcomed this (policy) because they think farmers will get a better price. States like Kerala are not accepting this...”

As per the policy, foreign investors are required to invest at least $100 million (about Rs 540 crore) and their outlets may be set up only in cities with a population of more than 10 lakh.

At least 50 per cent of FDI should be invested in ’back-end infrastructure’ within three years of the first tranche.

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