Farmers' body threatens to launch stir against easing FDI

Says unregulated flow of foreign capital will spell doom to the peasantry and agricultural workers

The Left-backed farmers' body today criticised Centre for easing FDI in 15 key sectors, including agriculture and plantations, and threatened to launch a nationwide protest if the NDA Government persisted with the "retrograde" reforms.

The All India Kisan Sabha (36 Canning Lane) today claimed that the move will bring more "miseries" to peasantry while benefiting middlemen.

"AIKS strongly demands Centre to ensure foreign investors are kept out of agriculture, animal husbandry and plantation sectors. Otherwise, the AIKS, along with likeminded organizations, will build countrywide massive resistance movement to save peasantry and rural working class," the farmers' wing of CPI(M) AIKS General Sand president Amra Ram said in a joint statement.

The duo noted that "this is a retrograde step that will bring more miseries to working class and peasantry, while benefiting only certain affluent sections that will play the role of middlemen. This will intensify exploitation of peasantry already facing severe distress under neo-liberal reforms."

Mollah and Ram also countered government's claims that the decision will help liberalise and simplify FDI policy to provide ease of doing business resulting in growth in investment and employment.

To prove their point, the body cited example of reported economic, political and environmental dangers faced by Zimbabwe, Kenya, Namibia, South Africa, Guatemala, Argentina and Brazil, which had taken similar decisions.

"Unregulated flow of foreign capital will spell doom to the peasantry and agricultural workers and keep the domestic economy in doldrums," they said.

The two further slammed the government for taking the decision "which will have far reaching consequences" without holding discussion by the cabinet, and underlined "Modi regime's authoritarian means of administration".

Pushing ahead with major reforms, the government on November 10 relaxed foreign investment rules in 15 sectors such as civil aviation, banking, defence, retail and news broadcasting and eased the process for approval of foreign direct investment (FDI).

While 100 per cent FDI has been allowed in DTH, cable network and plantation crop, overseas investment limit in uplinking of news and current affairs TV channels has been raised to 49 per cent from 26 per cent.

The government relaxed conditions for FDI in single-brand retail and allowed 100 per cent FDI under automatic route in duty-free shops and Limited Liability Partnerships (LLP) and eased foreign investment norms in the defence sector.

It has also raised the FIPB's monetary limit to Rs 5,000 crore from Rs 3,000 crore for approving FDI proposals.