Centre's decision on FDI brings cheer to Himachal farmers

Opening up the retail sector for foreign direct investment (FDI) is expected to give a boost to fruit and vegetable farmers in Himachal Pradesh, especially as its temperate climate offers the opportunity for off season cultivation, a noted farmers’ body said here today.

“FDI is expected to roll out cool chains that will bring the market closer home, reduce the number of middle men and enhance returns to farmers,” said Prakash Thakur, chairman, People for Environment Horticulture & Livelihood Himachal Pradesh, a prominent farmers’ body Thakur said this policy change is commendable for the farmers of the hill state who grow apple, stone fruit, and off season vegetables, a significant part of it rots and wastes due to lack of a cool chain system in the hill state .

“Highly perishable fruit like cherry, apricots, peaches and plums, have huge demand but are unable to tap the market fully due to lack of a cool chain and transport infrastructure. All this should see a boost with opening up of the retail sector for large investments through FDI,” Thakur said.

“Though the government has offered a subsidy of Rs 625 crore, but it will be only with support of FDI that the private sector would be able to import technologies and funding for establishing these much needed cool chains,” he said.

The inter-ministerial task force has also projected an investment of Rs 2,100 crore for upgrading existing storage and post harvest management facilities in the agriculture sector. FDI would certainly help to bridge any funding or technology gap, thus helping to boost productivity.

Farmers say, with the entry of the private sector into Himachal Pradesh’s fruit and vegetable business, players like Adani Agro Fresh, Dev Bhoomi, Container Corporation of India and Mother Dairy, have begun to strike deals directly with the farmers in recent years and are doing away with traders. Multi-brand retail with 51 per cent ownership will change the game completely and make the market more competitive, reduce wastage and distress sales for growers, Thakur said.

On the other hand, CPIM’s state unit has criticised the opening of FDI in retail saying it will destroy small traders.

The party is planning to hold protest rallies against this move, said Tikender Panwar, a top CPIM leader of the state.