Lack of seamless supply chain could hit farmers, consumers - Hindustan Times

ack of clarity on government policy on FDI in retail may have forced logistics majors to defer planned investment to set up cold-chains and warehouses across India. This means that prices of goods may not plunge immediately after the flood-gates for foreign investment are opened for deep-discount retail mega stores, experts said.

"Only after five years when a company had been investing into the development of its back-end operations can it be in a position to impact prices," said Arvind Singhal, chairman of consulting firm Technopak Advisors.

In a discussion paper released earlier this month, the department of industrial policy and promotion (DIPP) said FDI in retail may be an efficient means of addressing the concerns of farmers and consumers.

"Opening FDI in retail could also assist in bringing technical know-how to set up efficient supply chains, which can act as models of development," the discussion paper said.

More...