'State won't allow FDI in retail'

The State government has decided not to allow foreign direct investment (FDI) in multi-brand retail as it may hurt the interest of farmers and small traders in the State.

Addressing reporters here on Saturday, Agriculture Marketing Minister S K Bellubi compared FDI to the entry of erstwhile East India Company which eventually led to colonisation of the country by the British.

He said the State government has now realised the adverse consequences of allowing the German trade and retail giant Metro to open its cash and carry wholesale centre in Bangalore by amending the APMC Act a few years ago.

FDI in retail may benefit a small section of people, but it doesn’t serve the interest of a vast majority. “We have decided that we do not need it,” he said.

The minister said the government has decided to adopt electronic tendering system of National Commodity and Derivatives Exchange Limited in 50 APMC markets in the State to sell 11 important produces: tur, copra, turmeric, dry chillies, raisin, rice, arecanut, maize, groundnut, cotton and sunflower.

The first phase of work has already been completed in Gulbarga, Tiptur, Tumkur, Arsikere and Bijapur APMC markets. The system will ensure that farmers get a competitive price for their produce, said Bellubi.

In addition, a maize technology park in Ranebennur, integrated rice technology park at Karatagi in Gangavati taluk of Koppal district, tur technology park in Gulbarga and coconut technology park, including coconut products research and development unit will be established at Tiptur in  Tumkur district.

He said that an onion and potato wholesale market development project at a cost of
Rs 102 crore is being implemented on 67 acres of land at Dasanapura near Bangalore. DH

DH Newsletter Privacy Policy Get top news in your inbox daily
GET IT
Comments (+)