NEW DELHI: In its efforts to take the lead in attracting foreign direct investment (FDI) in multi-brand retail, the state government started easing certain norms for allowing direct purchase of produce from farmers by retailers.
The government has already announced to make amendments to the Agricultural Produce Marketing Committee (APMC) Act so as to allow direct connectivity between retailers and farmers.
“We have held consultation with various stakeholders on the issue,” PWD Minister Raj Kumar Chauhan said after a meeting with representatives of the major mandis. He also looks after functioning of various mandis.
According to the existing provision, farmers are not allowed to sell their produce directly to retailers as it has to be routed through the mandis operated by APMC.
Last week, Delhi Chief Minister Sheila Dikshit said it will be implemented in the city by next financial year.
In order to break monopoly of the wholesale traders the government will to amend APMC Act 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.