FDI in Retail: Examining Some Issues in Agricultural Products

A lot of passion has been generated in the debate on FDI in Retail on the issue of impact on agriculture. One side takes the position that this is precisely what the farmer always needed. He will get a better price for his produce, cut out the middlemen and rural prosperity will be advanced. The other side takes the stance that the MNCs will bring goods at extremely low pries from abroad undercutting the Indian farmer and throwing him out of business. Alternatively the MNCs will control the supply chain and in a monopolistic situation, offer extremely low prices to the farmer. Without any options the farmer will end up selling at a loss and eventually give up agriculture as a means to live. End result will be death of Indian agriculture.