Uttarakhand CM asks PM to implement FDI in retail

Uttarakhand Chief Minister Vijay Bahuguna on Wednesday asked Prime Minister Manmohan Singh to implement the decision to allow foreign direct investment in the multi-brand retail sector.

Following strong opposition from key allies like the Trinamool Congress (TMC), the UPA government had put on hold the decision to allow 51% foreign direct investment (FDI) in multi-brand retail segment.

"I urge the Prime Minister and commerce and industry minister Anand Sharma for early implementation of this policy," the Chief Minister said. He said this decision holds significance in unlocking the true potential of the country's agrarian economy as in absence of adequate logistics and infrastructure, a larger part of farm produce never reaches the market.

Bahuguna said the decision to open the stores should be left to state-governments."It is not mandatory for every state to implement the policy. Those states who want, should not be deprived of this decision. FDI in the sector will give impetus to the state economy," he said.

The UPA government has renewed efforts for a consensus on on the politically-sensitive issue of FDI in retail, estimated to be a about USD 550-billion market."Farmers are at the  mercy of middlemen and on the one hand, they do not get the true price for their produce. On the other hand, consumers end up paying many times more than the price secured by the farmers," he added.