To implement the FDI in retail, the government has already announced making amendments to the Agricultural Produce Marketing Committee (APMC) Act to allow direct connectivity between retailers and farmers.
"We have held consultation with various stakeholders on the issue," PWD Minister Raj Kumar Chauhan, who also looks after functioning of various mandis, said after a meeting with representatives of the major mandis.
As per the existing provision, farmers cannot sell their produce directly to retailers as it has to be routed through the mandis operated by APMC
Chief Minister Sheila Dikshit, who has been strongly backing the Centre's decision to allow FDI in multibrand retail, last week said it will be implemented in the city by next financial year.
Officials said government will have to bring amendments to APMC Act to break monopoly of the wholesale traders so that retailers can directly buy agricultural produce from farmers.
As per the FDI policy approved by the Cabinet, the final authority for granting trade licence rests with the states under their respective Shops and Establishment Acts.
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To break the monopoly of Azadpur mandi, considered one of the the largest fruit and vegetable wholesale markets in Asia, the government is also considering allowing private market yards for marketing of farm produce.
Sources said government was considering setting up a wholesale market in Tikri Khud area in West Delhi where it has around 72 acres of land.
They said government may even consider allowing foreign retail giants to set up shop in the area.
States which have supported the Centre's decision include Maharashtra, Delhi, Jammu and Kashmir, Haryana, Rajasthan, Uttarakhand, Andhra Pradesh and Assam - all ruled by UPA.
These states have 19 cities - including Delhi, Mumbai, Pune, Nagpur, Jaipur, Hyderabad, Vijaywada, Srinagar and Guwahati - with more than one million population.
As per Centre's decision, foreign retailers will only be allowed to set up shop in cities with over one million population.