The Hindu Business Line : FDI in retail

This is with reference to the article, `WhyFDI in retail' (Business Line, November 3). If the FDI participation in the retail segment would improve collection and distribution of farm products, it could be well considered despite the possibility of loss of jobs elsewhere.

Besides, the processing of farm products could generate immense opportunities for the rural and urban unemployed.

The national network of super markets could themselves help generate placement opportunities in large numbers.

It may be true that the present corner shop structure may experience a slight jolt but this again appears to be mere exaggeration.

In fact, co-existence of super and corner markets would make the latter more competitive and skilled in terms of operations. The Prime Minister should therefore use his good offices to convince the partners and supporters of the UPA government regarding the need to bring in FDI in the retail segment. In the process, it should be remembered that the present corner market theory should not suffer through any out of turn incentives to the FDI.

C. P. Velayudhan Nair

Kochi

* * *

The article, "Why FDI in retail" (Business Line, November 3), has tried to explain the need for foreign direct investment in the retail sector. But the main fear is whether it will, in due course, affect the small and marginal farmers and the present social set-up. So the government should clearly state where it will be allowed, how much, how it will work and what checks and controls government will have.

A. Jacob Sahayam

Thiruvanantahpuram

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FDI in retail