(a) whether the need for enhancement of storage capacity of various foodgrains, fruits and
vegetables in the retail market is being considered essential for the foreign capital
investment;
(b) if so, the impact on small traders alongwith the impact on the interests of the
producers of such items;
(c) whether the Government will address the issue of loss of foodgrains before opening
up Multi-Brand Retail Trading; and
(d) if so, the details thereof?
THE MINISTER OF STATE IN THE MINISTRY OF C0MMERCE & INDUSTRY(SHRI JYOTIRADITYA M. SCINDIA)
(a) to (d): The existing policy allows for 51 % Foreign Direct Investment (FDI), in only single
brand retail, subject to specified conditions. Government has received suggestions from
associations / trade bodies for allowing FDI in multi-brand retail. The objective will be to
enhance the operational efficiency of back-end infrastructure in the retail sector, reduce
wastage in the agricultural sector, enhance benefit to producers, integrate the retailer in
the value chain and benefit consumers through greater competition. Towards this end, the
Department of Industrial Policy and Promotion has released a discussion Paper on the subject
of ‘Foreign Direct Investment in Multi-Brand Retail Trading’, with the aim of generating
informed discussion on the subject and obtaining the views and comments of various
stakeholders. The impact on farmers and small traders in the unorganized sector, as
also capacity building for storage of food grains, fruits and vegetables etc., have been
examined in the discussion paper. The discussion paper and comments received thereon are
available in the public domain. It is expected that the views/suggestions received in
response to this discussion Paper will enable the Government to take an appropriate policy
decision at the appropriate time.