Consortium of Indian Farmers Associations demands FDI in agriculture, retail

Last Updated : 22 July 2011 at 13:25 IST
NEW DELHI (Commodity Online): Consortium of Indian Farmers Associations (CIFA) is for allowing FDI (Foreign Direct Investment) in agriculture and retail, according to its Secretary General Chengal Reddy.

Calling for additional research in private sector and allowing FDI in agri processing industries, storing and value addition segments, he said the move would bring competition in the agriculture sector.

“We want the agriculture sector to be liberalised. Also, government should procure grains from the open markets for PDS (Public Distribution System).” he demanded.

Currently, the Union Government procures grains for PDS for a price that it fixes evaluating various factors. This is much less than the market price.

“And if someone wants to fix a price, an autonomous body should be doing that”, he said. “This was recommended by M.S.Swaminathan.” he added.

“This autonomous body should factor in the expenses as met by farmers, including their household expenses and fix a price for produce.” He said.

Reddy was responding to questions pertaining to crop holidays declared by farmers in areas of Andhra Pradesh recently. The move has left about 3 lakh acres fallow that can dent production by around 10 lakh tons. The farmers are protesting their produce not receiving remunerative prices.

Minimum Support Price (MSP)

“MSP is a fraud”, Chengal Reddy snapped.

“This mechanism was floated in 1965; there is nothing like Minimum Support Price. Currently no free-trade in agriculture is allowed. There are too much of controls and restrictions. This should change”

He called for free competition (so that the farmers get their right price that would make MSP null and void).

Policy makers do not understand agriculture, he complained.

Exports

“The government should have allowed exports this January.” he lamented when asked if the government measure to allow exports were not helping farmers.

The India government had recently allowed Rice exports to the tune of 10 lakh tons.

“There is 80 million tons out there.” He said.

Also the government should have followed the recommendation by Commission for Agriculture Costs and Prices (CACP) in exports. CACP had recommended 3 million tons in grain exports.

As published in: http://www.commodityonline.com/news/Consortium-of-Indian-Farmers-Associations-demands-FDI-in-agriculture-retail-40965-3-1.html