A re-orientation of the policy framework was the need of the hour and enhanced foreign direct investment (FDI) in multi-brand retail would transform the rural economy and generate massive employment and opportunities for both rural and urban youth.
This was stated by Union Commerce and Industry Minister Anand Sharma here on Wednesday. This was his first comments to a discussion paper released by the Department of Industrial Policy and Promotion (DIPP) on Tuesday.
Mr. Sharma ruled out loss of jobs or displacement of small vendors. Instead, it would give a big thrust to the rural economy and small townships where infrastructure would come up and value addition would take place. “This will generate amazing number of opportunities to the rural and urban youth and also provide remunerative price for their produce to the farmers. I do not agree that it will displace small vendors and lead to job losses,” he told a group of Indian journalists.
Policy formulation was a dynamic process and could not be rolled backwards. The purpose of releasing the discussion paper was to trigger a national debate as was done in the case of the defence sector. “We have not released a policy. It is only a debate and we will study the inputs and comments of the stakeholders and then take a sensitive view of the situation. This sector has a potential for tremendous growth and we need to tap that to give a new and dynamic director to India's economic growth,” he said.
Mr. Sharma said interests of all sections would be taken into consideration while finalising the policy. Its focus would be to get investments into sectors such as cold storage chains, agro-processing, food processing and drastically bring down post-harvest losses that now stood around 35-40 per cent.
He said:
“Back-end investments will be given priority. Investors commitments will be sought to make our people employable and create more jobs in both rural and urban areas. The value addition will transform the face of the rural economy and farmers will benefit immensely by getting good price for their produce and reducing the role of middlemen.
“What is important for us is that India has the strengths to emerge a strong leader in agro and food processing and we are working towards this aim. We are seeking to bring in investments with certain specifications. Small vendors and merchants will be ensured of products at wholesale prices and reasonable prices by the big chains.
“The elimination of post-harvest loss of fruits and vegetables will also prove to have a sobering effect on the supply side. I can see a situation few years down the line where millions will be employed through this process and farmers will be well off. I do not agree with those who state that the economy or the farmers will be hurt.”
