Andhra Pradesh Chief Minister N Kiran Kumar Reddy welcomes FDI in retail

HYDERABAD: Andhra Pradesh Chief Minister N Kiran Kumar Reddy today said the state would welcome foreign direct investment in multi-brand retail as it would help both consumers and farmers.

"I have already communicated the state's consent to the Centre," he said.

Lack of proper facilities (for processing and storage) was letting precious aqua products, vegetables and grains to rot.

Reddy pointed out that FDI in retail would help improve marketing, packaging, processing and storage networks in the rural areas.

"There will be a lot of value-addition to our produce which will ensure quality products to the consumers at lesser prices. Obviously it will benefit the farmers as well," he added.

He said the government could not do everything. "Government's intervention is only about 5 to 30 per cent. Less than two per cent of the produce (by farmers) is being marketed by the state. Also, we don't have money to start cold storages, processing units, etc and that's where the FDI will help us," the Chief Minister said.