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To push 51 per cent Foreign Direct Investment in multi-brand retail, the Congress is all set to woo the Janata Dal(U) and the Shiromani Akali Dal both of which form part of the BJP-led National Democratic Alliance. The leader of the ruling UPA will also broach Uttar Pradesh.
Official sources told Business Line that the Commerce and Industry Minister, Mr Anand Sharma, will soon reach out to the Chief Ministers of these predominantly agrarian States — Mr Akhilesh Yadav (UP), Mr Nitish Kumar (Bihar), and Mr Parkash Singh Badal (Punjab). He has written to the Chief Ministers of UP, Punjab and Odisha seeking support for FDI in multi-brand retail.
FDI in multi-brand retail is expected to benefit farmers as it could lead to more companies sourcing directly from them, eliminating middlemen.
Benefits for farmers
Studies have shown that FDI in multi-brand retail will bring in investments in cold chains, thereby cutting post-harvest losses of fruits and vegetables (estimated at 40 per cent of the total produce) as well as foodgrains (around 10 per cent). Besides, the move is expected to create several million jobs, the sources said.
The sources said the Union Agriculture Minister and the leader of a key ally — the Nationalist Congress Party — Mr Sharad Pawar supports FDI in retail terming it as ‘very positive and beneficial’ for the farmers and the agrarian economy.
The sources said Punjab’s Deputy Chief Minister, Mr Sukhbir Singh Badal, had backed FDI in multi-brand retail, adding that the Jammu and Kashmir Government has offered to support the move.
The meetings with Mr Nitish Kumar and Mr Badal assume significance as they are NDA constituents. The BJP has vehemently opposed FDI in retail apparently with an eye on the upcoming Assembly elections in Gujarat and Karnataka, where the party is in power. In Karnataka, though the elections are due next year, the infighting in the BJP has led to rumours of an early poll. The BJP’s opposition to FDI in retail is mainly because traders form an important vote bank for the party, the sources said.
Meanwhile, hectic parleys are on between the Congress and its allies to work out a consensus.
UPA Parleys
Mr Sharma will also hold talks with the West Bengal Chief Minister and head of another ally — the Trinamool Congress — Ms Mamata Banerjee to arrive at a ‘compromise’ solution, the sources said. The DMK, also a UPA ally, had expressed concern on FDI in retail.
“If the allies, especially those ruling different States, keep quiet and do not make much noise, it (FDI in multi-brand retail) can go through,” the sources said.
Most Congress-ruled States support FDI in retail. But in Congress-ruled Kerala, Mr Oommen Chandy, has said his Government does not think it will be a good step for the State at this stage.
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