To help reduce gap in farm-to-fork prices, says Sharma.
Commerce and Industry Minister Anand Sharma has expressed serious concern over the huge gap between wholesale and retail prices of commodities, especially essential food items.
Highlighting the need to liberalise foreign direct investment (FDI) norms, the minister today said while there was no direct relation between opening the multi-brand retail sector for FDI with wholesale prices, liberalising the sector would have a calming effect on prices.
“We are the second largest producer of fruits and vegetables in the world, yet, a significant portion of our production rots every year. However, policy (formation) is dynamic...We are very progressive and forward looking,” the minister said adding he had held meetings with Finance Minister Pranab Mukherjee, Home Minister P Chidambaram and Defence Minister A K Antony to explore ways to liberalise FDI policy for multi-brand retail.
He said allowing FDI into the sector would help reduce the gap between prices of a commodity from farm to fork.
Earlier this year, the Department of Industrial Policy and Promotion floated discussion papers to liberalise FDI policy in retail and defence sectors. While the process of consulting the stakeholders is over, the government is yet to take a formal call on the issue.
Expressing his concern on soaring food prices, Sharma said the government was taking measures to control it.
He said a Cabinet note would be moved on the new manufacturing policy, which is in the works at present.
The government aims to increase the share of manufacturing to 25 per cent of the gross domestic product within the next 10 years.
