India is observed as the rising economy where one can invest in various sectors and enjoy profits. To make use of this, FDI’s (Foreign Directs Investors) are now investing in the food processing sector. During the April-February period of the last fiscal FDI’s has invested worth USD 463 million in the Indian food processing sector. In the Budget 2016-17, Finance Minister Arun Jaitley, had announced 100 per cent FDI in food processing, which means now those looking forward to invest in Indian food processing sector will now mandatorily invest in the farm gate levels to benefit the farmers of the nation.
Despite of worshipping the occupation of agriculture, farmers have always been the sufferers. They take to pain to produce the vegetables, fruits, etc. and bare the climatic disasters that damage their crop. Not only that, they give their soul and heart to cultivate the land and once when produced they are not paid enough by the buyers to whom the farmers sell. As a result farmers have always bared the loss. This scheme is talking in favor of farmers, where FDI shall invest their funds which will then help farmers to raise their income. This policy by the government was announced to address the requirements of farmers and food processing industry. This happened because mostly fruits and vegetables grown by farmers either fail to fetch the optimum prices or at times fail to reach the market.
Food Processing Minister Harsimrat Kaur Badal has said – “My intention behind proposing this policy was to create ‘swadeshi’ (local) infrastructure at the farm gate level with ‘videshi’ money (foreign investment)”. Adding further to this she said- “I feel there should be a rider in the policy to ensure that a certain percentage of FDI inflows is invested on infrastructure at the farm level, directly benefiting the farmers”.
Investments done by FDI may focus on various ways of farming, such as- latest irrigation technologies, mechanized farming and seeds. This help in yielding quality production which shall further help in food processing to produce quality products.
Verdict: This policy shall benefit the farmers as their income will raise that’ll help them further to purchase quality seeds and machines used in farming. This shall strengthen Indian economy as well as the farmers who used to suffer previously in all kinds of circumstances.
Author: Mrs. Viveka Verma Nagar