Badal pitches for 100% FDI in food products multi-brand retail

Food Processing Minister Harsimrat Kaur Badal today pitched for 100 per cent foreign direct investment (FDI) in multi-brand retail of food products produced and processed in India, as it would benefit farmers and reduce inflation.

"I have requested the Prime Minister, that 100 per cent FDI in multi-brand retail of those food products which are produced and processed in India should be allowed. So that big companies can create infrastructure especially for the agriculture sector and bring latest technology for the farming sector," Badal said.

This initiative would increase processing in the country, reduce inflation and create enough employment opportunities for the youngsters especially coming from an agriculture background.

The minister had written a letter to the Prime Minister requesting for a 'relook' at the country's FDI policy in multi-brand retail in food processing.

"The growth in food processing sector results in rise in income of farmers. As it grows, the demand for agricultural produce also increases which is basically a raw material for the sector," Badal said while speaking at an event here organised by industry body Assocham.

The minister said there is huge scope in the country to promote the food processing sector as we are processing only two per cent of the perishable produce.

India permits 51 per cent FDI in the multi-brand retail sector.

So far, the government has cleared UK-based Tesco's proposal in multi-brand retail sector.

During April-September, FDI in the country has increased by 13 per cent year-on-year to $16.63 billion.