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CAIT opposes 100% FDI in food processing sector

Opposing the Budget proposal to permit 100 per cent FDI in food processing segment, traders body CAIT today said the move would adversely impact farmers and will result into mass unemployment.

CAIT-AV“Allowing foreign investment in any form of retail will have adverse impact on traders, farmers, hawkers, transporters, small industries and will result into mass unemployment,” Confederation of All India Traders (CAIT) said in a statement.

Allowing FDI in food sector is nothing but a step in the direction of opening retail sector to FDI much against the declared commitment of not allowing foreign players in the retail sector, it said.

“We strongly oppose this move of the government which will enable the global retailers to control, dominate and monopolise the food sector. The trade fears that today it is the food sector and tomorrow entire retail may be opened on one pretext or the other,” it said.

It is a major shift in policy of the government and that too without taking traders into confidence, it added.

“The government seems to be much lethargic and having least bothered about trading community of the country which is generally considered as strong vote bank of BJP,” CAIT said.

The body urged Prime Minister Narendra Modi to “give us an audience and listen our sufferings” as no priority is given to retail sector, it added.

Further it said the government has not taken cognizance of the report of Indian Council of Agricultural Research, which had stated that food wastage in India is merely 0.8 per cent to 10 per cent.

Any move to allow multinational companies into Indian retail trade will amount to “betrayal of confidence” of the small businesses in India, it said urging the government to issue a white paper on FDI in retail.

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