Canada hails move, says FDI will aid farmers

After the US, its northern neighbour has come out in open support of India’s move to open its retail sector to foreign direct investment (FDI).

Canada says experience shows the move will facilitate prompt and proper marketing and fetch farmers good price for their produce.

Sara Wilshaw, Minister Trade, High Commission of Canada in India, said on Thursday multi-brand retailers in the food and consumer goods industries of her country would likely be “very interested” in this change in FDI policy.

“India’s growing middle-class consumer obviously represents a significant market,” she noted, speaking to Business Standard. “Opening this sector to the increased participation of foreign retailers will provide for a greater range of consumer choice as well as an attractive investment opportunity.”

Canada is home to big retail chains that include Metro Inc (the third largest grocer in Canada), Loblaw Companies Ltd, Shoppers Drug Mart Corp and Canadian Tire Corporation Ltd, Alimentation Couche-Tard Inc, Empire Company Ltd and the Katz Group Inc.

Wilshaw said there were instances in India as well where farmers have got assured returns when they have entered into contract farming for big retailers. “In India itself, Mccain Food Ltd changed the lives of almost 4,000 farmers in Gujarat when it entered into an agreement for contract farming with them,” she recalled.

Not only did the earnings of farmers grow; they were also helped with modern technology in production and also storage and transportation, the diplomat noted.

Mccain Foods (India) Pvt Ltd is an arm of the Canada-based McCain Foods Ltd, the world’s largest producer of French fries and other oven-ready frozen food products.

Opinions similar to Wilshaw’s came from her country. Colin Jeffares, assistant deputy minister of agriculture and rural development in Alberta province, said big retail chains would help farmers. “Moreover, in North America, we are moving towards contract farming,” he pointed out. “It gives guaranteed price to farmers and helps them in managing their production and price.”