GULBARGA: A convention of red gram growers, Dal mill owners, and traders involved in marketing of red gram on Tuesday opposed the move of the Government to allow Foreign Direct Investment (FDI) in retail trade by amending the APMC Act.

They have decided to meet the Union Commerce Minister Kamalnath and Agriculture Minister Sharad Pawar in connection with this.

Inaugurating the convention organised by the Hyderabad-Karnataka Chamber of Commerce and Industry, Dal Mill Owners' Association, Foodgrain and Seed Merchants' Association and the Karnataka Pranta Raita Sangha, Communist Party of India (Marxist) Politburo member K. Varadharajan, who is president of the All-India Kisan Sabha, highlighted the dangers faced by farmers and traders in forward trading permitted by the Union Government in agriculture and said this would pose a threat to food security in the country and affect efforts to achieve self-sufficiency in foodgrain production. Mr. Varadharajan said the decision to allow forward trading in certain commodities was already affecting food security.

There was a shortage of foodgrain and oilseeds this year and the situation would worsen if the Government did not take steps in this regard. Another danger faced by farmers and traders was the decision to amend the APMC Act to allow FDI in retail trade.

Small traders

This would see the end of small traders and they would be wiped out of the market by majors in the retail trade through unequal competition, he added.

President of KPRS Maruti Manpade said Gulbarga district which was known for the production of cotton and oilseeds was now a pulse-grower owing to market mechanisms and lack of support from the Government. Red gram growers also faced a threat of being wiped out of the scene owing to liberalisation policies and the decision of the government to amend the APMC Act.

Chief of the Agriculture Research Centre of the UAS, Dharwad, Dharmaraj said the red gram industry should diversify and take up Dal processing units to survive competition from major players.

President of the Hyderabad-Karnataka Chamber of Commerce and Industry Umakant Nigudgi said traders and Left parties should join hands to fight the Government to allow FDI in retail trade.

There were two classes of traders and the big players such as TATA, Reliance and others could not be compared with small traders involved in retail trade, he added.

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