Farm sector will benefit from FDI in retail greatly, says Kamal Nath

Union Minister Kamal Nath today strongly defended FDI in multi-brand retail, saying the agricultural sector would benefit from the move in a big way.

"As many as 40 percent of vegetables are rotting as there is no backend. Multi-brand retail is a model that will work and the advantages outweigh the risks. Advantages of a backend and cold-chains being formed, sourcing, quality standardisation, etc are going to mainly help our agricultural sector," Kamal Nath, Union Urban Development and Poverty Alleviation Minister said.

Reuters

He was addressing the All-India management Association summit. Stating that the worries of mom-n-pop stores being gobbled up by the big players were unfounded, Nath, who in 2009 had pushed for retail FDI, said, out of all the cities we had only 21 cities that were eligible for the model.

"I think small and medium retail can live with large retail. I don't see people abandoning their local shops and drive 15-20 miles to a large retail outlet unless he is getting some real benefit out of that," he said.

On September 14, the government allowed 51 percent foreign holdings by multi-brand retail chains with two caveats- one foreign retail chains like Wal-Mart, Tesco, etc will be allowed to set up shops only in those cities with over 1 million population; and secondly, they can operate only in those states, which allow FDI in retail.

Stating that the real issue was not about the FDI but about the big versus the small, he said, "The issue is not FDI in retail. It is a misinformation. The issue is big vs small. We have said FDI is allowed only in cities with over 1 million population. How many will qualify? I think only 21 cities in all the states will be able to avail of this."

PTI


Updated Date: Dec 20, 2014 13:09 PM

Also Watch

Watch: Firstpost test rides the new Thunderbird 500X in Goa and walks you through the Royal Enfield Garage Cafe
  • Tuesday, April 17, 2018 Varun Dhawan on Shoojit Sircar's October, 5-star reviews and working with Anushka Sharma in Sui Dhaaga
  • Saturday, April 14, 2018 Ambedkar Jayanti: Re-visiting Babasaheb's ideals exposes fake Dalit politics of Rahul Gandhi and Congress
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See