FDI in retail sector - a boon or curse?
A lot of noise is being made over UPA government's cabinet meeting decision to allow FDI (Foreign Direct Investment). Is this noise justified? The government is doing its best to justify the stand it has taken while the traders of NMMC are bent on making the government to not allow FDI in APMC market at least. They call this government's decision as an autocratic one. But the government considers this decision as a reform move. Now who is right traders or government?
The traders are of the opinion that introduction of FDI will result in the traders of the country becoming jobless. They also say that FDI will disturb the social fiber of the nation. They accuse the government of introducing FDI just to please the multinational companies.
The traders fear that FDI will not only have adverse repercussions on the traders in the retail sector but shall also result in gradual unemployment amongst the Mathadi workers. Now it is true that something that will affect the livelihood of around 25000 Mathadi workers is a serious issue. The APMC traders are trying hard to get the government to revoke the demand of FDI in Maharashtra at least since they believe that there being a major difference in policy of the FDI and traders, the survival of trading community and in turn, that of the mathadi workers, will be at stake.
Now here is how the government defends its stand. It says that implementation of this decision will lead to all operations getting carried out by machines. The government appreciates the policy of the FDI which is to bypass the middlemen (agents) and traders at the APMC market and say, for example, buy a commodity for Rs 30 directly from the farmers and sell it to the retailer for Rs 25. Now this will be beneficial to both farmers and consumers.
But APMC traders say that this way the foreign retailers will be eating into the profits of the traders and the middlemen at the APMC market, thereby jeopardizing their sources of income and livelihood.
The government must have made the decision with the intention of giving a boost to the foreign exchange in our country. The government must have thought that the in-flow of dollars into the country will do us a lot of good. The government must have thought in terms of profit for the consumers as well as farmers. But it is true that government must also consider the problems that the traders' community will have to face owing to this decision. Government must find a solution whereby both the foreign investors and the domestic traders will be happy.
A lot of noise is being made over UPA government's cabinet meeting decision to allow FDI (Foreign Direct Investment). Is this noise justified? The government is doing its best to justify the stand it has taken while the traders of NMMC are bent on making the government to not allow FDI in APMC market at least. They call this government's decision as an autocratic one. But the government considers this decision as a reform move. Now who is right traders or government?
The traders are of the opinion that introduction of FDI will result in the traders of the country becoming jobless. They also say that FDI will disturb the social fiber of the nation. They accuse the government of introducing FDI just to please the multinational companies.
The traders fear that FDI will not only have adverse repercussions on the traders in the retail sector but shall also result in gradual unemployment amongst the Mathadi workers. Now it is true that something that will affect the livelihood of around 25000 Mathadi workers is a serious issue. The APMC traders are trying hard to get the government to revoke the demand of FDI in Maharashtra at least since they believe that there being a major difference in policy of the FDI and traders, the survival of trading community and in turn, that of the mathadi workers, will be at stake.
Now here is how the government defends its stand. It says that implementation of this decision will lead to all operations getting carried out by machines. The government appreciates the policy of the FDI which is to bypass the middlemen (agents) and traders at the APMC market and say, for example, buy a commodity for Rs 30 directly from the farmers and sell it to the retailer for Rs 25. Now this will be beneficial to both farmers and consumers.
But APMC traders say that this way the foreign retailers will be eating into the profits of the traders and the middlemen at the APMC market, thereby jeopardizing their sources of income and livelihood.
The government must have made the decision with the intention of giving a boost to the foreign exchange in our country. The government must have thought that the in-flow of dollars into the country will do us a lot of good. The government must have thought in terms of profit for the consumers as well as farmers. But it is true that government must also consider the problems that the traders' community will have to face owing to this decision. Government must find a solution whereby both the foreign investors and the domestic traders will be happy.
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