Reliance entry to boost farms, says expert

The entry of multinationals and big business houses like Reliance in the agro-processing sector is likely to narrow the gap between the consumers' expectations and returns he gets, according to the former president of the Indian Economic Association and now registrar of Guru Nanak Dev University, R S Bawa.

There was a mismatch between what a consumer paid for agricultural products and what he got, Bawa said.

However, due to the procurement policy for wheat and rice, the gap in the case of these crops is less. In case of other agricultural products, especially fruits and vegetables, due to their perishable nature, the share of farmers is only 30 per cent.

This is also one of the major reasons for the failure of diversification plans.

Bawa said the solution to this problem lay in the development of a marketing and exports network, and agro processing.

Bawa said: "Even if Reliance is able to meet 50 per cent of the projected targets, the project will uplift the agricultural economy of the state. The present terms and conditions on which the land is being provided to RIL are justified and the implementation of the project should be expedited."