FDI in Agriculture Sector

FDI up to 100% is permitted, under the automatic route, subject to certain conditions mentioned in Consolidated FDI Policy, in the following agricultural activities: Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions; Development and production of Seeds and planting material; Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, under controlled conditions; and Services related to agro and allied sectors.

100% FDI is also permitted in tea sector. Besides the above, FDI is not allowed in any other agricultural sector/ activity.

Policy for FDI in Multi-Brand Retail Trading (MBRT) provides that at least 50% of the first tranche of US $ 100 million shall be invested in back- end infrastructure which includes construction of warehousing and cold storages.

This information was given by Shri Tariq Anwar, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.

MP:SS:VBK: CP: sector (lok) 13.8.2013