FDI debate begins, BJP says government gone back on promise

New Delhi : The government had promised a decision on foreign investment in retail after consensus but had gone back on its promise, Bharatiya Janata Party (BJP) leader Sushma Swaraj said Tuesday while initiating the debate on the issue in the Lok Sabha.

The leader of opposition said the government claims that foreign direct investment (FDI) in multi-brand retail would benefit farmers but this was not proven by international experience.

“The government has gone back on its promise of holding consultation with all stakeholders before allowing FDI in retail. It is sad that no effort was made to make a political consensus and no meeting or any consultation was held with even the main opposition party,” she said.

“International experience shows that retailers do predatory pricing and they will reduce the prices so that the other shops get shut and when the market is over, they will increase the prices and then consumers will have no choice but to buy at high prices,” she said.

Sushma Swaraj quoted the European Union declaration against supermarkets and said they pay farmers poor prices the world over.

“They give low prices to farmers, low wages to employees, but keep high profits. All over world large supermarkets do this,” she added.