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New Delhi, Jul 6 (PTI) The government today indicated that it may have the first right of procurement to farmers produce for the state-run ration shops as and when big foreign players are allowed in multi-brand retail. "To ensure that the integrity of PDS (public distribution system) system is not weakened and buffer stock is maintained at the desired level, should government reserve the right of first procurement for a part of the season," Industry Ministry suggested in the discussion paper on the FDI in multi-brand retail. At present, FDI is allowed only in single-brand retail and cash-and-carry (wholesale) business. Alternatively, the paper said the government can put an obligation on private traders to contribute towards the buffer stock from their procurement. The government is following this system in case of sugar where the mills have to contribute 20 per cent of their production for supply through ration shops. The apprehension of private traders cornering the harvest leaving very little for the government agencies arose from the experience of 2006 when the Centre had to import wheat because of aggressive buying by traders. The paper, released today, pointed out that India was losing agri products, fruits and vegetables to the tune of Rs one lakh crore annually and said the establishment of cold chains and back-end infrastructure could cut down the losses by more than half. Pitching for the opening of the retail sector, it said that farmer, in the present system, gets just a third of the consumer prices for their produce as intermediaries dominate the value chain. "The absence of farm-to-fork retail supply system has led to the ultimate consumers paying a premium for shortages and a charge for wastages," the paper said, adding that "FDI in retail, may, therefore, be an efficient means of addressing the concerns of farmers and consumers." PTI DSH MJH PC.
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