 "Harsimrat Kaur Badal")
FDI in multi-brand retailing can benefit the fruit and vegetable processing industry, Food Processing Minister Harsimrat Kaur Badal said today but added that she will abide by the Cabinet on the issue.
The BJP-led NDA government is opposed to allowing foreign direct investment (FDI) in multi-brand retailing, but it has not yet scrapped the policy approved by the previous UPA regime.
Speaking on the initiatives taken by the new government in the food processing sector in 100 days, Badal said the sector is growing at the rate of 8.4% as compared to 4% in agriculture.
The minister added in case of fruits and vegetables only 2% of the total output is processed, which needs to be increased.
When asked on FDI in multi-brand retail, Badal said: "FDI as a policy of the government is clear, it's not something which I may decide, it's the Cabinet decision... There is no doubt it would benefit in fruits and vegetables, for example cold chains, and all the required infrastructure will come up. But a larger policy decision would be taken by the government not by one ministry."
FDI is a government policy decision, it can't be sector specific, she added.
Commerce and Industry Minister Nirmala Sitharaman had categorically stated that the FDI would in multi-brand retail would not be allowed.
The previous government had opened the multi-brand retail sector for foreign investment and allowed up to 51% foreign direct investment (FDI) in the sector.
The politically sensitive multi-brand retail segment in India employees millions and is dominated by mom-and-pop stores.
