Delhi first in line to welcome FDI in multibrand retail

Plan to allow direct buying from farmers

Keen to make Delhi the first city to have global retail chains like Walmart, Tesco and Carrefour following the Centre’s decision to allow FDI in multibrand retail, the city government is considering easing certain norms for allowing direct purchase of produce from farmers by retailers.

Initially, the government will go for making amendments to the Agricultural Produce Marketing Committee (APMC) Act to allow direct connectivity between retailers and farmers, officials said.

Under the existing provision, farmers cannot sell their produce directly to retailers as it has to be routed through mandis.

“We will have to bring amendments to the APMC Act to break monopoly of the wholesale markets so that retailers can directly buy agricultural produce from farmers,” said chief secretary P K Tripathi.

Tripathi said after getting detailed communication from the Centre on allowing 51 per cent FDI in multibrand retail, the city government will work out a plan of action to help the global giants set up their shops in the Capital.

As per the FDI policy approved by the Union cabinet, the final authority for granting trade licence rests with the states under their respective Shops and Establishment Acts.

To break the monopoly of Azadpur Mandi, considered one of the largest fruit and vegetable wholesale markets in Asia, the government is also considering allowing private market yards for marketing farm produce.

“We will have to change the monopoly of wholesale market. Allowing direct purchase by retailers will also help farmers get better return on their produce,” Tripathi said.
On criticism that the livelihood of those running kirana shops will be affected, he dismissed such apprehensions, saying nothing will happen to small retailers.

Chief minister Sheila Dikshit, who also holds the finance portfolio, has been backing the Centre’s decision to allow FDI in multibrand retail, saying it will help farmers get best remunerative prices of their products, besides facilitating lower rates of essential commodities.

States that have supported the Centre’s decision include Maharashtra, Delhi, Jammu and Kashmir, Haryana, Rajasthan, Uttarakhand, Andhra Pradesh and Assam — all ruled by the UPA.