Retail FDI: Who cares about the farmers?
01 Dec 2011
Even as traders (encouraged by political parties and trade unions) launch an all-out protest against further foreign investment in retail, farmers – the actual producers of the goods – do not seem to be on board.
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.
They are sick of the 'mandi' system where the government-run Agriculture Pricing and Marketing Committee (APMC) has a virtual monopoly on purchasing.
"Traders and middlemen are sucking our blood. But no political party is talking about our interest because we are not organised like labour unions, nor have deep pockets like traders," P Chengal Reddy, secretary-general of Consortium of Indian Farmers Associations (CIFA), told The Times of India.
"India has 600 million farmers, 1,200 million consumers and five million traders. Both farmers and consumers benefit from FDI in retail," Reddy said.
Bharat Krishak Samaj, a farm lobby with more than 75,000 members, said it supports FDI in retail on the condition that direct procurement from farmers is made mandatory. "Till it is made a law, nobody is going to follow it. Everyone is bothered about shopkeepers," BKS chairman Ajay Jakhar said.
