Retail FDI to Help Boost Exports: Fieo.

MUMBAI: Even as the move to let 51 percent FDI in retail has created yet another friction between the government and the Opposition, the national exporters' body hailed the move saying it will spur exports and also called for more such reforms to prop up the sagging economy.

The Federation of Indian Exporters Organisation ( Fieo) president Ramu S Deora, while complimenting the government in general and the Union Commerce and Industry minister Anand Sharma in particular for permitting 51 percent foreign direct investment in multi-brand retail, besides 100 percent in single brand retail, said economic reform process should be re-initiated with full vigour as was done in 1991 for inclusive growth.

He also said the move will help the farmers get better prices, to the tune of double of what they get today, as farm to fork procurement can eschew middlemen who now squeeze the farmers.

"Today our farmers receive only 30 percent of price paid by consumers compared to 50-70 percent in developed markets," he said.

"A structured retail will therefore, enable better price discovery for farmers as FDI will be able to access the world market as efficient producers sellers linkage will be established which will be more remunerative for producers," Deora said.

Source : economictimes.indiatimes.com