Metro waiting to clear APMC Act hurdle

Metro Cash & Carry India is looking forward to the new government in Karnataka to have a relook into the Agriculture Produce Marketing Committee (APMC) Act and allow Metro to sell wholesale fresh produce such as fruits and vegetables from its two distribution centres in Bangalore.

Under the existing APMC Act, no wholesaler of fruits and vegetables is allowed to carry out trading outside the prescribed APMC yard in the city. As a result of this, Metro is falling short of its targets by nearly 30 per cent.

Harsh Bahadur, managing director of Metro India, said: "We are constrained by this Act and we are falling short of our targets by 30 per cent. We are hopeful of the new government in the state rework the APMC Act so that we can bring our expertise to the farmer and the buyer community at large."

Bahadur, however, declined to reveal the actual sales figures of Metro in India. The German major at present has invested close to Rs 250 crore in Bangalore to set up two distribution centres and to "bring more efficiency in the existing supply chain."

In addition to this, Metro is also plagued by constant allegations that it is undertaking retail business which is not allowed for any overseas player in the country.

"We have had repeated questions from the FIPB officials on this and we have clearly put forth our views that we are doing only business-to-business transactions. They have visited our centres and have been convinced of our activities," said Bahadur.

Various state governments such as Andhra Pradesh and Punjab have invited Metro to set up similar operations in their states and the company is evaluating various options, he added.

Stating that Metro is committed to India for long term, he said India along with China and Russia are among the top markets for Metro where significant investments will made in due course of time.