The Bharatiya Janata Party (BJP), vehemently opposing the government decision on foreign direct investment (FDI) in the retail sector, was caught offguard after its alliance partner, the Shiromani Akali Dal (SAD), not only welcomed the decision but also sent a letter of appreciation and support to the Prime Minister, from Parkash Singh Badal, chief minister of Punjab.
The third major alliance partner in the BJP-led National Democratic Alliance (NDA), the Janata Dal (United), is standing with the BJP on the issue. Although leaders of the Akali Dal strongly support the alliance with BJP, they say they’re free to have different views on policy issues.
“We welcome the decision and it will help the people of Punjab and also improve the economy of the state. The problem in Punjab is that there are mostly fragmented landholdings. Multinational companies will bring money to build supply chains and cold chains, farmers will get better quality seeds and with the right kind of technical know-how, the income of farmers will certainly increase. These companies would also create more jobs,” said Naresh Gujral, MP from the Akali Dal.
Gujral said farmers in Punjab had benefited from supplying potatoes to multinational quick-service restaurant chains. So, the party had every reason to believe MNC entry would not only help raise agricultural production of fruits and vegetables but also reduce the post-harvest losses of farmers.
“According to the government, 40 per cent of post-harvest fruits and vegetables are wasted. These MNCs will bring the market to the doorstep of farmers. Punjab succeeded because the market was made available to farmers at their doorstep in the case of rice and wheat. Similarly, revenue generation would also double, because sales tax and value added tax collection would rise considerably,” Gujral said.
Senior Akali leaders emphasised that successive governments in Punjab, whether Congress or SAD, had tried to promote crop diversification but couldn’t succeed. “We neither have the know-how, nor deep pockets. We also expect that in the coming years, the agricultural products of Punjab would not only be supplied all over the country but when the borders between India and Pakistan open up, we will be able to sell our products across the border up to the countries of the erstwhile Soviet Union. There is a huge market waiting,” Gujral explained.
Meanwhile, leaders of the JD(U) say they are opposing FDI in the retail sector and believe it would lead to large-scale unemployment, as most small retailers and shopkeepers would lose business, as they’d have to compete with MNCs. “I oppose it tooth and nail. It is not the right step, as it will ruin retailers and will lead to a point of unemployment beyond imagination in the country,” said Nitish Kumar, the chief minister of Bihar, while talking to reporters in Patna.
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Senior BJP leaders are so furious with the government’s nod on FDI that Uma Bharati threatened to set afire outlets of multinational giants. She claimed to have informed BJP president Nitin Gadkari of her plan of action.
“By giving permission to Walmart to directly invest in the retail sector, the Centre has jeopardised the employment opportunities of Dalits, poor and backwards. I would personally set afire the showroom when it opens anywhere in the country and I am ready to be arrested for the act,” said Uma Bharati, senior BJP leader while condemning government’s decision to allow 51 per cent FDI in multi-brand retail and 100 per cent FDI in single-brand retail.