FDI in Retail: Farmer Body Warns of Agitation to Manmohan Singh.

AHMEDABAD: A group of farmer leaders on Monday asked Prime Minister Manmohan Singh to implement the decision to allow foreign investment in multi-brand retail, or else face a nation-wide agitation.

Leaders representing the Consortium of Indian Farmers Association (CIFA), which has 4 lakh farmers' organisations from across 12 states as members, on Monday met the prime minister and stressed the need for foreign investment in supermarkets.

"The system of going through dalals, adithiya/commission agents to sell farm produce is highly exploitative as they charge 10% commission for auctioning and also deduct 10% on the pretext of quality deficiency. They manipulate prices and cheat in weighing of the produce. They do not give official receipts to the farmers. Invariably, they evade taxes to governments as all the transactions are unaccounted for. Also, another 3-4 middlemen are involved in the chain of marketing system and take away 30-40% of retail price without adding any value," said CIFA president Satanam Singh Behru.

"FDI in retail will be helpful to farmers, as it will establish producer groups and arrange for forward-backward linkage between the farmers and retailers. The existing producers under ATMA and the new producer groups will have facility to get quality inputs, extension services and packing facilities," he added.

CIFA leaders later said the PM was supportive of their concern but did not give any assurances. "The prime minister conveyed to us that he is all for reforms in Indian agriculture but has to carry along political consensus and consumer perspective in issues like sugar export de-control," said CIFA secretary general P Chengal Reddy.

While lobby groups such as CIFA are demanding FDI, there is no unanimity yet on the issue. Unions like the Bhartiya Kisan Union (Ekta- Ugrahan), the CPMaffiliated All-India Kisan Sabha and others see FDI in retail as a big threat to farmers. "We oppose FDI in retail and are now educating farmers at state level about it," said S Malla Reddy, V-P, All-India Kisan Sabha.

Source : economictimes.indiatimes.com