Survey bats for FDI in multi brand retail
15 Mar 2012
Foreign Direct Investment (FDI) in multi brand retail business and developing a 'farm-to-fork' retail supply system will go a long way in addressing the investment gaps related to post-harvest infrastructure for agricultural produce, according to the Economic Survey 2011-12.
According to the survey, the outlook for agriculture in the next fiscal remains bright, but given the rapidly rising levels of demand for food there is a need to consider some policy options to ensure brighter medium-term outlook.
These options could, inter alia, be regular imports of agricultural commodities, though in relatively smaller quantities and with an upper ceiling on quantity, depending upon the likely domestic situation in terms of production and consumption requirements.
The government has long been advocating FDI in multi-brand retail as a solution for rising prices of essential commodities.
''Improving mandi governance, promoting inter-state trade by eliminating multiple levies, taking perishables out of the ambit of the APMC Act, developing a 'farm-to-fork' retail supply system, and addressing the investment gaps related to post harvest infrastructure for agricultural produce, including through FDI in multi-brand retail'', may help in improving agriculture commodities management in the country, according to the survey.
While higher levels of agricultural output and ample food stocks augur well for bringing down headline inflation in the next fiscal, the survey finds that the growth rate in agriculture sector has fallen short of planned Plan estimate of 3.28 per cent and the target of 4 per cent in spite of the record food grain production.
