Open retail for FDI to check inflation: Assocham

Friday, 31 December 2010, 12:43 Hrs
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New Delhi: Worried over rising food inflation, Assocham today suggested that the government should consider early opening of retail sector for foreign investors to bridge demand-supply gap.

"The prevailing restrictions in FDI in retail chains should be reviewed as such ventures (setting up retail stores) require large capital and considerable expertise," it said.

It said that though large business houses are taking initiatives to set up retail stores and are eager to invest in supply chains and storages "provided government makes suitable changes in agricultural marketing laws and enables them to invite foreign direct investors in their ventures".

The promoters of the chains, it said, would invest in huge retail stores and storage facilities after picking up the products from centres near the farms.

"Assocham demands an early policy announcement," it said adding delivery of farm produce to sell at throwaway prices.
Source: PTI
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