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Stimulus 2.0: Reforms good, implementation a challenge, say food firms

The reason is the "well-oiled system" that exists right now, preventing farmers from approaching buyers directly.

fmcg,, goods, farm product, food processing, sales, beverage, non-essential
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Companies such as PepsiCo India and Coca-Cola India said they would have to study the fine print and had no comments to offer on the reforms announced on Friday.

Viveat Susan PintoIshita Ayan Dutt Mumbai/Kolkata
Finance minister Nirmala Sitharaman’s move to give farmers the “choice” to sell their produce anywhere in the country is a welcome step, feel food and agri companies. However, this may not be easy to implement, say executives at some of the top firms that Business Standard spoke to.

The reason is the “well-oiled system” that exists right now, preventing farmers from approaching buyers directly.

Even if a central law was introduced to change the current system, they say, farmers are unlikely to use it for fear of upsetting commission agents or arhtiyas, a powerful lobby of brokers in rural India.