Despite backlash from allies, opposition parties, traders and other sections, the government seems to be determined to allow foreign direct investment (FDI) in multibrand retail trading. A confident Anand Sharma, minister of commerce and industry and textiles, tells Nayanima Basu the government will stay on the path of serious reform. Edited excerpts:
How important FDI in multibrand retail trading (MBRT) is for India? Is it worth the risk?
It is not a question of risk. It is a question of conviction, national priorities and India’s needs. Farmers are faced with a situation where an overwhelming majority of them are not getting remunerative price for their produce in a system which has become very exploitative over the years. At the same time, when we look at the farm-gate prices and the retail prices, there is a difference in multiples. In food-grains our post harvest losses are in extent of 10 per cent and in fruits and vegetables the losses are as high as 40 per cent. This needs to be corrected and the only way is to create an integrated infrastructure. It benefits the farmers, it benefits the consumers and it will generate jobs within the entire chain of agricultural logistics. In urban areas, it will boost manufacturing.
Why are farmers protesting it so severely then?
The farmers associations and federations have welcomed it. The big farmers associations have spoken for themselves. This is pure politics being played out by the BJP. I can understand the dogmatic approach of the Left (parties) as they have ideological blinkers, which have not allowed them to move forward. But that is their ideology at least. But the existing parties subscribe to different ideologies, depends on which side they are in.
It has been a week since the Cabinet approved retail FDI, however, the Cabinet Secretariat is yet to send its approval note to the retail FDI proposal to DIPP for it to issue the notification. Is it going to be issued after the winter session of the Parliament?
There are certain procedures we need to follow. And there is no point in linking it to Parliament’s winter session. It is an executive decision. The opposition (parties) is dragging it in partisan politics, which is unfortunate. The processes need to be completed. It will come soon. My work was to take it to the Cabinet and have it cleared. It is not the minister’s job.
Have you not considered for rollback once? How do you see foreign retailers viewing the entire situation of such massive protests by traders, farmers?
Prime Minister Manmohan Singh today clearly stated that there will be no rollback. There is no question of a rollback on the decision. And what protest are you talking about. These are BJP sponsored protests. I do not know for whom the BJP is speaking. They are not speaking for farmers, they are not speaking for the consumers, and they are not speaking for the youth who will get the jobs. I am sure investors will come. Our policy is distinctively India centric and not a model that is there in vogue in US, Europe and China. We have kept in Indian complexities and accordingly put in adequate safeguards.
Do you find the demand for an adjournment motion justifiable over this issue?
This is the domain and the prerogative of the Speaker to decide. In my view the BJP and other parties in the opposition should respect the basic premise of the functioning of the government. An executive decision that does not require Parliamentary approval should not be stalled in such a manner.
So since this is an executive decision, could you not have brought it after the Parliament session was over. Do you think the timing was right?
It is not about any timing. The point is that there is a process. It has gone through extensive consultations. The Parliament was informed of the decision on August 3. I do not know why my opponents are saying now that they were not consulted. We are a government that acted out of conviction. This government has not looked at the timing and played politics, but we do not believe in doing things surreptitiously. We want it to be debated and not lost in the din of pure partisan politics.