Organic Farming
Organic Farming Association of India
Organic Farming Association of India (OFAI)
G-8 St. Britto’s Appartment, Fiera Alta, Mapusa, Goa - 403507 myofai@gmail.com Issues with FDI in Multi-Brand Retail for Indian Agrarian Community
Submission to Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry stakeholders meeting held on 13th January 2012
Udyog Bhawan, Delhi
Summary Statement
OFAI supports retail reforms in the form of improving supply chain and infrastructure to aid and economic security for farmers in the country but does not endorse the current proposal of 51% FDI in multi brand retail. We believe that India is capable of managing its own market through the states. Indian government and states can easily access funds available by removing unrequired subsidies to the tune of USD 20 billion a year e.g. through removal of fertilizer subsidy. Arguments and assumptions for this proposal debate piggyback on farmers stating that somehow this will help them in the long run in addition, help tackle national inflation and create newer jobs and infrastructure. The evidence however is on the contrary to this end so far as farmer of other countries fare with such retailers. In America every food dollar sends only 12 to 21 cents to farm gates. There is no provable evidence on whether such a move by even existing retail players of the country has helped the farmers nor is there any current evidence on how the cost of creation of newer infrastructure shall in the long run actually ensure best prices to customers and farmers. In fact in countries where these players operate has seen significant reduction in the overall farming communities and have become net importing states. While the farming community needs better infrastructure to move produce across the country, it also needs assured, stable marketing base which will not dictate to it in terms of inputs, seeds and types of crops. In addition the existing GHG emissions in India will
Organic Farming Association of India (OFAI)
G-8 St. Britto’s Appartment, Fiera Alta, Mapusa, Goa - 403507 myofai@gmail.com Issues with FDI in Multi-Brand Retail for Indian Agrarian Community
Submission to Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry stakeholders meeting held on 13th January 2012
Udyog Bhawan, Delhi
Summary Statement
OFAI supports retail reforms in the form of improving supply chain and infrastructure to aid and economic security for farmers in the country but does not endorse the current proposal of 51% FDI in multi brand retail. We believe that India is capable of managing its own market through the states. Indian government and states can easily access funds available by removing unrequired subsidies to the tune of USD 20 billion a year e.g. through removal of fertilizer subsidy. Arguments and assumptions for this proposal debate piggyback on farmers stating that somehow this will help them in the long run in addition, help tackle national inflation and create newer jobs and infrastructure. The evidence however is on the contrary to this end so far as farmer of other countries fare with such retailers. In America every food dollar sends only 12 to 21 cents to farm gates. There is no provable evidence on whether such a move by even existing retail players of the country has helped the farmers nor is there any current evidence on how the cost of creation of newer infrastructure shall in the long run actually ensure best prices to customers and farmers. In fact in countries where these players operate has seen significant reduction in the overall farming communities and have become net importing states. While the farming community needs better infrastructure to move produce across the country, it also needs assured, stable marketing base which will not dictate to it in terms of inputs, seeds and types of crops. In addition the existing GHG emissions in India will
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