Chief minister Buddhadeb Bhattacharjee with Union food processing minister Subodh Kant Sahai (right) in Calcutta on Monday. A Telegraph picture

Calcutta, Jan. 30: After allowing FDI in single-brand retail, the UPA government has now mooted foreign investment in retailing of agri products.

Union food processing minister Subodh Kant Sahai said a proposal favouring 51 per cent FDI in retailing of dairy, poultry, fruits and vegetables, marine foods, winery and ready-to-eat products has been sent to the cabinet for approval.

“It has been recommended by a group of ministers (GoM) and sent to the cabinet,” Sahai said on the sidelines of a conference on food business organised by the Federation of Indian Chambers of Commerce and Industry (Ficci) here today.

The proposal, however, might not go down well with the Left parties, which were against opening up the retail sector to FDI completely. “It is high time that the Left parties realise the situation. Agri business will create more jobs than information technology,” Sahai said, adding that Bengal chief minister Buddhadeb Bhattacharjee held a different view on the subject than his party members.

At present, 100 per cent FDI is allowed in the food processing sector.

The Left parties are worried that entry of big players in retail would lead to job loss.

There are about seven intermediaries between the grower and the end consumer in the agri-business chain. While it leads to inefficiencies in the system with 30 per cent of the produce being wasted, it also employs a large number of people.

Sahai said a comprehensive policy was being formulated to give more money to farmers.

“The effort is to save farmers from selling their produce under distress,” he said.

After FDI is allowed in this sector, foreign players will invest in critical infrastructure like cold chain and also add value by processing agri products. But they would want to retain the right to sell at the retail level. The comprehensive policy on food policy will seek infrastructure status for the agri business sector.