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Uttarakhand CM favours early FDI in retail sector

Press Trust of India New Delhi | Updated on November 16, 2017 Published on July 18, 2012

Mr Vijay Bahuguna

Says decision to open stores must be left to State Govts

The Uttarakhand Chief Minister, Mr Vijay Bahuguna, on Wednesday asked the Prime Minister, Dr Manmohan Singh, to implement the decision to allow foreign direct investment (FDI) in the multi-brand retail sector.

Following strong opposition from its key allies such as Trinamool Congress (TMC), the UPA Government had put on hold the decision to allow 51 per cent FDI in multi-brand retail segment.

“I urge the Prime Minister and Commerce and Industry Minister, Mr Anand Sharma, for early implementation of this policy,” the minister said.

He said this decision holds significance in unlocking the true potential of the country’s agrarian economy as in absence of adequate logistics and infrastructure, a larger part of farm produce never reaches the market.

Mr Bahuguna said the decision to open the stores should be left to State Governments. “It is not mandatory for every State to implement the policy. Those States who want, should not be deprived of this decision. FDI in the sector will give impetus to our State economy,” he told reporters here.

The UPA Government has renewed efforts for a consensus on the politically-sensitive issue of FDI in retail, estimated to be about $ 550 billion market.

“Farmers are at the mercy of middlemen and do not get the true price for their produce. Also, consumers end up paying many times more than the price secured by the farmers,” he added.

“In Uttarakhand this will help in increasing the income of the rural farmers whose agri-horticulture-organic produce get spoiled in large quantities because of non-availability of cold storage and proper marketing facilities. It would further help refraining migration of youth from the hilly region as economic activities will activate there,” he said.

Published on July 18, 2012
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