Less than a week after Delhi Chief Minister Sheila Dikshit held a rally of over 25,000 people in support of Foreign Direct Investment (FDI) in multi-brand retail, the Confederation of All India Traders (CAIT) has hit back, stating the data of ‘fruits and vegetable wastage’ on the basis of which FDI is being justified, is false.
Delhi may become the first state in the country where FDI in retail would be implemented. The state government under Dikshit has made its intentions clear of amending and implementing the Agriculture Produce Marketing Committee (APMC) Act, which would clear the way for large multinational retail chains to set shop.
“In the rally held recently at Delhi Chief Minister’s residence, it was said that FDI in multi brand retail is necessary, as 30 per cent of the fruits and vegetables go waste due to lack of infrastructure, like cold storage and warehouses. This is incorrect, as official government data available with CAIT suggest that fruits and vegetable wastage is a maximum of 18 per cent,” said Praveen Khandelwal, secretary general of CAIT.
Khandelwal said that the figures of post-harvest agricultural losses have been deliberately exaggerated to justify government’s decision of allowing FDI in retail. Various quarters of the Union and state government have repeatedly said that 40 per cent of the wastage of fruits and vegetables is alarming, and therefore, FDI in retail is required to develop back-end infrastructure, like cold storages. “Shockingly, the notification issued in September 20, 2012 while defining back-end infrastructure does not mention cold storage and modern transport system,” he added.
“In reality, as per a detailed study commissioned by the government and conducted by Central Institute of Post Harvest Engineering and Technology (CIPHET), Punjab, the wastage of fruits is only between 6 to 18 per cent, and that of vegetables is between 6 to 12.5 per cent. The government is citing false and misleading information to aid and abet the entry of multinationals in the country,” claimed Khandelwal.
The CAIT said that the CIPHET report was prepared on the directions of the parliamentary committee. The Ministry of Food Processing Industries (MoFPI) asked the Indian Council of Agricultural Research (ICAR) to conduct a study on post-harvest losses. The ICAR, in turn, asked the CIPHET to conduct a study. The CIPHET conducted study with the help of Indian Statistical Research Institute (ISRI). The study was given to the Union government in July 2010.
“CIPHET’s nationwide quantitative assessment of harvest and post-harvest losses in 2010 covered 46 agricultural produce from 106 randomly-selected districts. I revealed that wastage of fruits is only between 6 to 18 per cent, and that of vegetables is between 6 per cent to 12.5 per cent. Wastage is lower for other items. For crops, it is 3.9 to 6 per cent, cereals 4.3 to 6.1 per cent, pulses 4.3 to 6.1 per cent, oilseeds 6 per cent, meat 2.3 per cent, fish 2.9 per cent and poultry at 3.7 per cent,” informed Khandelwal.
The CAIT stated that in a written reply to the Lok Sabha in February 2011, Minister of State for Food Processing, Harish Rawat, referred to the CIPHET study. On May 3, 2012 Minister of State for Food Processing Industries, Charan Das Mahant, informed the Parliament that cumulative wastage in fruits and vegetables is estimated between 5.8 and 18 per cent. Hence, the government has been fully aware of the facts and figures of post-harvest wastage.
“In the Union Budget 2012-2013, under Implementation of Budget Announcements in paragraph number 65 again the figure of wastage of fruits and vegetables is quoted. What is compelling the government to repeatedly say that there is post-harvest wastage of 40 per cent in the country,” Khandelwal wondered.
Khandelwal said that on November 25, 2011, around 16 months after the CIPHET submitted its study, the Department of Industrial Promotion and Planning (DIPP) placed a note as to why FDI in retail is necessary.
Reacting to charges levelled by CAIT, Congress leader and Parliamentary Secretary to Delhi chief minister Mukesh Sharma said, “This is a BJP conspiracy. BJP is supporting people in CAIT who are engaged in the business of hoarding and black-marketing food and grains, and hiking prices of essential commodities. The Congress Party is worried for common people not hoarders.”
Sharma said contrary to CAIT’s statements, there have been instances when people of Uttar Pradesh have burnt sugarcane due to excess produce; other vegetables like cauliflower have to be thrown away due to lack of cold storages. “Even when Indian companies opened big departmental stores, there were protests in Delhi, but have they affected the small trader? Has any international pizza chain replaced Haldiram?” he questioned. “BJP should come up with better ideas than siding with hoarders,” he said.