Question : INVESTMENT IN AGRICULTURE SECTOR

(a) whether Public and Private investment as well as Foreign Direct Investment (FDI) is permitted in agriculture and allied sectors including construction of warehousing and cold storage for agricultural produce;

(b) if so, the details thereof along with the total FDI committed and remitted during each of the last three years and the current year, sector-wise;

(c) whether the Government has studied the impact of the remitted FDI on the performance of agriculture and allied sectors;

(d) if so, the major findings of the study and the Government`s reaction thereto; and

(e) the steps being taken by the Government to attract greater FDI in the under-served agriculture and allied sectors?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FOOD PROCESSING INDUSTRIES (SHRI TARIQ ANWAR)

(a): Yes, Madam. FDI, up to 100% is permitted, under the automatic route, subject to certain conditions mentioned in Consolidate FDI Policy, in the following agricultural activities:

(i) Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions;

(ii) Development and production of Seeds and planting material;

(iii) Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, under controlled conditions; and

(iv) Services related to agro and allied sectors.

Also 100% FDI is also permitted in tea sector.

Besides the above, FDI is not allowed in any other agricultural sector/ activity.

Public and private investments are also being made in agriculture and allied sectors.

(b): Year-wise amounts of public and private investments in agriculture & allied sectors are given at Annexure I. Year wise amounts of FDI inflows in different sectors of agriculture are given at annexure II.

(c): No, Madam.

(d ): Does not arise.

(e ): 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.