New Delhi: Despite delay in allowing FDI in multi-brand retail business, the government has encouraged domestic organized sector to build infrastructure for supply chain in India.  Along with the Prime Minister, the Finance Minister has appealed states to appeal bigger industries to invest in developing infrastructure of agricultural supply chain. Moreover, the government has emphasized on increasing investments of private sector in marketing, transportation and storage facility of fast degradable agricultural products.

On Wednesday, the Prime Minister and the Finance Minister were addressing a workshop on agriculture sector organized by the President of India. Governors of 20 states, 8 Union Ministers, and Chief Ministers of 5 states participated in the workshop.  Both Manmohan and Pranab said, before allowing FDI into retail sector we should empower domestic investors. Then only we can achieve proper development in agriculture sector and will have healthy competition after inclusion of foreign players. Both agreed on manifold increase in prices from farms to consumers.

The Finance Minister has told states that even after the permission of FDI, they should continue encouraging investments of domestic organized sector in food supply chain. Retail business in India has enough opportunities. The Finance Minister has said that to satisfy rising demands of Indian economy, we need proper development as well as more competition in the agriculture sector.

Talking on current heavy agricultural harvest the Prime Minister has said that farmers have made our country proud. In the current FY, harvest of 25 crore tonnes agricultural production is estimated. Seeing the growing demands for horticulture and animal husbandry, it should be encouraged more.

It has been said during workshop that to minimize the gap between prices from farm to marketplace, one of the alternative could be infusing FDI into multibrand retail sector. President Pratibha Patil has said that to encourage agriculture on land devoid of irrigation, we need to think on different lines. By this we can achieve more agricultural output. For implementation of this more focus should be drawn in 12th five year plan.

The President has said that out of the total agricultural land, 60 percent of them are left without irrigation. Despite that their contribution to total agricultural output is 44 percent. 87 percent cereals, 80 percent oilseeds, 65 percent cotton production comes from the land without the facility of irrigation. 40 percent population of India depends on agriculture from the land without the facility of irrigation.