Farmers body meets PM, urges speedy implementation of retail FDI

The Consortium of Indian Farmers Associations (CIFA) today met Prime Minister Manmohan Singh and urged him to take steps for implementation of FDI in retail by the end of this month, saying this would help the cause of farming community.

The association, which claims to represent 40 million farmers, said it would be forced to go on an agitation from January 1, next year, if the demands are not met.

The Cabinet had last month approved 51% FDI in multi-brand retail. However, the decision was put on hold due to opposition from rival parties and some of the ruling UPA allies.

"On behalf of the farmers of India, we met Prime Minister Manmohan Singh and urged him to speed up the process of allowing foreign direct investment (FDI) in the retail sector before end of this month," CIFA Secretary General P Chengal Reddy said.

CIFA has also requested the Prime Minister to set up a regulatory body to check exploitation of farmers by commission agents, he added.

Explaining that FDI in retail will help farmers as the existing marketing system at local mandies and wholesalers is controlled by commission agents, he said farmers are compelled to pay commission in the local mandi.

The middlemen manipulate prices and do not provide any services and official receipts to farmers, Reddy pointed out.

When asked about the Prime Minister's response to their demands, Reddy said the Prime Minister said that there is a need to speed up investments in the agriculture sector.

"Prime Minister told us that liberalisation is the way to improve the condition of the farm sector and to provide more benefits to the farmers," he added.

Reddy said Singh told the delegation that he is in favour of FDI in retail but the government has to assure certain things.

"Prime Minister said the government is building a political consensus on the issue and at the same time it would ensure that consumers interests are protected," Reddy said.

CIFA threatened that farmers will launch a countrywide agitation in case FDI in retail is not implemented by December 31, 2011.

"We have conveyed to the Prime Minister that in case FDI in retail is not operationalised by December 31, 2011, CIFA will launch a nation-wide agitation from January 1, 2012," Reddy said.

According to Reddy, CIFA represents farmer groups spread across 12 states in India and about 40 million farmers are directly and indirectly associated with it.