State agriculture marketing boards today said FDI inmulti-brand retail will harm farmers, particularly small and marginal peasants.
"Farmers are certainly going to be affected if FDI into multi-brand retail is given a go-ahead. It will mainly cause concerns to small and marginal farmers who have less than four hectares of land," the National Council of State Agricultural Marketing Boards (COSAMB) Managing Director S S Randhawa said while addressing a farmers’ meet on the issue organised by CII here today.
Noting that foreign direct investment (FDI) into multi-brand retail would come with only "profit motive", he said the presence of foreign retailers in the sector would create a monopolistic situation that would yield lower realisations to farmers.
"Purchasing will be at low prices, while selling will be at higher rates. As a result, farmers will not greatly benefit from the arrangement," he said.
He further said buying of only high-quality farm produce through contract farming arrangements would have a negative impact on other farmers who could be harassed to become part of the foreign retailing system.
"The sudden halt of procurement of a particular crop by a retailer from a farmer will also lead to a vacuum as there will be no other alternative for the farmer at that time to produce another crop," he said.
Randhawa said that retailers must purchase commonly-grown crops only through contract farming at a price linked with market rates.
COSAMB has a mandate to bring efficiency in agricultural marketing system.