Food Processing Minister Harsimrat Kaur Badal on Tuesday pitched for 100 percent FDI in multi-brand retail of the food products produced and processed in India, as it would benefit farmers and reduce inflation.
"I have requested the Prime Minister that 100 percent FDI in multi-brand retail of those food products which are produced and processed in India should be allowed. So that those big companies can create infrastructure especially for the agriculture sector and would bring latest technology for the farm sector," Badal said.
This initiative would increase processing in the country, reducing inflation and creating enough employment opportunities for the youngsters especially coming from farmer families or agriculture background.
The minister had written a letter to the Prime Minister requesting for a 'relook' at the country's FDI policy in multi-brand retail in food processing.
"The growth in food processing sector results in rise in income of farmers. As it grows, the demand for agriculture produce also increases which is basically a raw material for the sector," Badal said while speaking at an event here organised by industry body Assocham.
The minister said there is huge scope in the country to promote food processing sector as we are processing only two percent of the perishable produce.
India permits 51 percent FDI in the multi-brand retail sector.
So far, the government has cleared UK-based Tesco's proposal in multi-brand retail sector.
During April-September, FDI in the country has increased by 13 percent year-on-year to USD 16.63 billion.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
