The
Congress-led United Progressive Alliance (UPA) - currently in power at
the Centre - is in favour of foreign direct investment (FDI) in
multi-brand retail, and is focussing on back-end infrastructure through
the public-private partnership (PPP) model, which is largely dependent
upon FDI in multi-brand retail.
However, its opposing coalition, the National Democratic Alliance (NDA) - led by the Bharatiya Janata Party (BJP) - has categorically stated that it is anti-FDI in multi-brand retail (although it would permit FDI in other sectors if voted to power following the 16th Lok Sabha election, which is underway across India).
Both the parties’ manifestos stated that the agriculture and food processing were key constituents of their economic agendas. Thus, both sectors are awaiting the outcome of the election, on the basis of which the parties would make their policies.
They promised to reform the Agricultural Produce Market Committee Act were the need of the hour, and concurred that there was a need to develop better seeds.
The incumbent’s manifesto
In its manifesto, Congress said its decision to permit FDI in multi-brand retail would transform India’s agrarian economy. “It would create a beneficial value chain from farm to fork, and rural infrastructure for sorting, grading, packing, cold storage facilities and warehouses. It would ensure that farmers fetch a higher value for their produce,” it added.
The incumbent party’s manifesto reiterated that it would continue to nurture PPP to increase investments in value chains, cold storage units, grading and standardisation, quality certification and warehouses. “This would greatly aid in increasing agricultural productivity and exports,” it added.
Congress stated that special funds would be earmarked for agricultural research to develop new technologies, livestock and high-yielding-varieties of crops.
BJP’s promises
The main opposition party stated in its manifesto that it would implement and incentivise the setting up of the food processing industry, which has so far remained just on paper.
“This would lead to a better income for farmers and the creation of jobs. We intend to establish agro-food processing clusters, in which there would be units that would undertake the processing of high-value, export quality foods, which would be vacuum-packed,” it added.
BJP categorically stated that genetically-modified (GM) foods would not be allowed without the full scientific evaluation of its long-term effects on soil, yield and biological impact on the consumers.
The party stated that it would work with the states to set up seed culture laboratories in each district and regional agriculture innovation laboratories to conserve agro-biodiversity, and to identify and preserve rare indigenous varieties.
When quizzed about the price rise issue, BJP appeared more focussed. They promised that their immediate task would be to rein in inflation by putting in place strict measures such as setting up special courts to stop hoarding and black-marketing; setting up price stabilisation fund; unbundling the Food Corporation of India’s (FCI) operations into procurement, storage and distribution for greater efficiency; leveraging technology to disseminate real-time data about production prices, imports, stocks and overall availability to farmers; evolving a single national agriculture market, and promoting and supporting area-specific crops and vegetables linked to the food habits of the people.
Lauded by industry bodies
Industry bodies welcomed both the parties’ manifestos, terming them growth-oriented.
Sharad Jaipuria, president, PHD Chamber of Commerce and Industry, said BJP committed to the agri rail network, which would transform the agricultural supply chain, accruing huge benefits to producer farmers and consumers and plugging the possibility of wastage of agri-commodities.
”However, when the BJP is pro-FDI in other sectors of the Indian economy, it makes little sense to bar them from multi-brand retail, since a decision to this effect has already been taken by the government and foreign investments have lined up for it,” he added.
“The move might send wrong signals to investors if insistence on it is not shed following the constitution of 16th Lok Sabha,” Jaipuria warned.
The president of the Confederation of Indian Industry (CII), meanwhile, stated that the body was happy to note that the policies mentioned in both manifestos were investor-friendly.
However, its opposing coalition, the National Democratic Alliance (NDA) - led by the Bharatiya Janata Party (BJP) - has categorically stated that it is anti-FDI in multi-brand retail (although it would permit FDI in other sectors if voted to power following the 16th Lok Sabha election, which is underway across India).
Both the parties’ manifestos stated that the agriculture and food processing were key constituents of their economic agendas. Thus, both sectors are awaiting the outcome of the election, on the basis of which the parties would make their policies.
They promised to reform the Agricultural Produce Market Committee Act were the need of the hour, and concurred that there was a need to develop better seeds.
The incumbent’s manifesto
In its manifesto, Congress said its decision to permit FDI in multi-brand retail would transform India’s agrarian economy. “It would create a beneficial value chain from farm to fork, and rural infrastructure for sorting, grading, packing, cold storage facilities and warehouses. It would ensure that farmers fetch a higher value for their produce,” it added.
The incumbent party’s manifesto reiterated that it would continue to nurture PPP to increase investments in value chains, cold storage units, grading and standardisation, quality certification and warehouses. “This would greatly aid in increasing agricultural productivity and exports,” it added.
Congress stated that special funds would be earmarked for agricultural research to develop new technologies, livestock and high-yielding-varieties of crops.
BJP’s promises
The main opposition party stated in its manifesto that it would implement and incentivise the setting up of the food processing industry, which has so far remained just on paper.
“This would lead to a better income for farmers and the creation of jobs. We intend to establish agro-food processing clusters, in which there would be units that would undertake the processing of high-value, export quality foods, which would be vacuum-packed,” it added.
BJP categorically stated that genetically-modified (GM) foods would not be allowed without the full scientific evaluation of its long-term effects on soil, yield and biological impact on the consumers.
The party stated that it would work with the states to set up seed culture laboratories in each district and regional agriculture innovation laboratories to conserve agro-biodiversity, and to identify and preserve rare indigenous varieties.
When quizzed about the price rise issue, BJP appeared more focussed. They promised that their immediate task would be to rein in inflation by putting in place strict measures such as setting up special courts to stop hoarding and black-marketing; setting up price stabilisation fund; unbundling the Food Corporation of India’s (FCI) operations into procurement, storage and distribution for greater efficiency; leveraging technology to disseminate real-time data about production prices, imports, stocks and overall availability to farmers; evolving a single national agriculture market, and promoting and supporting area-specific crops and vegetables linked to the food habits of the people.
Lauded by industry bodies
Industry bodies welcomed both the parties’ manifestos, terming them growth-oriented.
Sharad Jaipuria, president, PHD Chamber of Commerce and Industry, said BJP committed to the agri rail network, which would transform the agricultural supply chain, accruing huge benefits to producer farmers and consumers and plugging the possibility of wastage of agri-commodities.
”However, when the BJP is pro-FDI in other sectors of the Indian economy, it makes little sense to bar them from multi-brand retail, since a decision to this effect has already been taken by the government and foreign investments have lined up for it,” he added.
“The move might send wrong signals to investors if insistence on it is not shed following the constitution of 16th Lok Sabha,” Jaipuria warned.
The president of the Confederation of Indian Industry (CII), meanwhile, stated that the body was happy to note that the policies mentioned in both manifestos were investor-friendly.
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