The Food Processing Ministry is in favour of easing foreign direct investment (FDI) norms in the retail sector, saying farmers would get higher returns for their produce by connecting themselves with the global trade.
"I am in favour (of easing the FDI regime in retail further) because... Retail is not going to harm your domestic market. Retail is going to give you the passage to the world market," Food Processing Minister Subodh Kant Sahai said here on sidelines of the launch of the National Meat and Poultry Processing Board.
At present, the FDI limit stands at 51 per cent for single brand retailing and 100 per cent for cash-and-carry business.
Processed food business in the country, which forms an important part of the retail trade, has grown at 13.12 per cent in 2007-08 against just over 6 per cent four years ago, the minister said.
"Retail chain is not going to be limited for the domestic consumer. They will go for the world consumers," Sahai said.
Moreover, the income the population that depends upon agriculture can be raised when India becomes a major player in the world market, he opined.
"In the US, hardly 4 per cent depends upon agriculture; in the European country hardly 7 per cent, whereas here it is 70 per cent. So, the income for the 70 per cent will be generated only when we will link ourselves with the world market," Sahai said.
