Lok Sabha polls 2014: Janata Dal (S) changes track, now in favour of FDI in retail

BANGALORE: In a clear reversal of its earlier stand against foreign direct investment ( FDI) in multi-brand retail , the Janata Dal(S) on Friday supported the policy in the 'interest of farmers.'

“The idea of multinational companies entry in the commerce field will affect small traders does not carry any weight,” the party said in its 20-page manifesto released by the party supremo and former Prime Minister H.D. Deve Gowda. The party supremo was earlier known for his opposition to FDI in retail in the past, but the party, steered actively by his son and former CM H.D. Kumaraswamy, sees no threat from MNC retailers.

The manifesto, however, says this could be done with some restrictions on multinational firms. “Our farmers will benefit if multinational companies are allowed to buy goods directly from them with certain restrictions. It will fetch fair prices for their commodities ,” the manifesto said, and added, “the government should step into support the Industries to increase their competitive spirit.”

The party also criticised the UPA for its wavering stance on FDI in retail and insurance sectors. The party emerged as the second largest political force after the Congress in Karnataka in last year’s Assembly elections by winning a vote share – 20.13 per cent – slightly ahead of the BJP. The party has 40 MLAs in the 224-member Karnataka Assembly.

“We believe when multinational retailers buy directly from farmers, they will get higher price for their produce. We must, however, ask them to compulsorily set up storage facilities in rural areas which will benefit farmers,” JD(S) manifesto committee secretary MS Narayana Rao told ET.

“It is incorrect to assume that the presence of foreign retailers will hurt kirana shops. The two cater to different segments,” he added.

Political analyst Sandeep Shastry said the JD(S) stand on FDI in retail is an attempt to win over the affluent sections in the farming community. “The party leaders know small and marginal farmers don’t read this manifesto. This stand will give the party a little more visibility,” Shastry said.