Government quoted wrong figures of 40 % post-harvest loss on FDI in Retail issue. 

Its own study says loss is only 6% to 18%.

The Union Government has deliberately exaggerated figures of post-harvest losses of agricultural produce to justify its decision of allowing FDI in Retail. Various quarters of the Government have repeatedly said that 40% wastage of fruits and vegetables is alarming and therefore FDI in Retail is required to develop the backend infrastructure. In reality, as per a detailed study commissioned by the Government and conducted by Central Institute of Post-Harvest Engineering and Technology(CIPHET), Punjab,the wastage of fruits is only between 6 to 18% and vegetables is between 6 to 12.5 %.

The government is thus citing false and misleading information to aid and abet the entry of multinationals into the country. It is acting against the interest of millions of its citizens. Never before have the people been betrayed by their own government in this fashion post-independence.

According to CAIT National Secretary General Mr. Praveen Khandelwal, “The report was prepared at the direction of parliamentary committee, so the genesis is requirement of parliament. The Ministry of Food Processing Industry asked the Indian Council of Agricultural Research (ICAR) to conduct a study on post-harvest losses. The ICAR in turn asked Central Institute of Post-Harvest Engineering and Technology (CIPHET) to conduct a study. The CIPHET in its Press Release said that it conducted the study with the help of Indian Statistical Research Institute and used scientific methods to reduce errors. The CIPHET study was given to Government of India in July 2010. The government has been misleading the nation for the past two years on this issue.”

CIPHET’s nationwide quantitative assessment of harvest and post-harvest losses in 2010 covered 46 agricultural produce in 106 randomly selected districts. It revealed that wastage of Fruits is only between 6% to 18% and vegetables between 6% to 12.5 %. Wastage is lower for other items: for crop (3.9 -6.0%), cereals (4.3-6.1%), pulses (4.3-6.1%), oilseeds (6.0%), meat (2.3%), fish (2.9%) and poultry (3.7%).

The summary of the study of post-harvest loss is available on the website of Ministry of Food Processing. In a written reply to the Lok Sabha in February 2011, Minister of State for Food Processing Shri Harish Rawat referred to the CIPHET study. On May 3,2012 Minister of State for Food Processing Industries ShriCharan Das Mahant informed the Parliament that cumulative wastage in fruits and vegetables is estimated between 5.8% and 18%. The Government has been fully aware of the facts and figures of post-harvest wastage. In the Union Budget 2012-13 under Implementation of Budget Announcements in Para no.65 again the figure of 40% wastage of fruits and vegetables is quoted. What is compelling the Government to repeatedly say that there is post-harvest wastage of about 40% in the Country?

The CIPHET report has also been quoted, with tables on Page 84-85, in the report of Working Group on Agricultural Infrastructure constituted by the 

Planning Commission. Even Dr. Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission also said that In India 30% of fruits and vegetables and 5-7% grains are wasted-quoted nowpublic.com.

On 25th November, 2011(16 months after the CIPHET study), the Department of Industrial Promotion and Planning (DIPP) under Ministry of Commerce placed a note as to why FDI in Retail is necessary. It states that "as per some industry estimates, 35-40% of fruits and vegetables and nearly 10% of food grains in India are wasted.” The same words were repeated in the Discussion Paper of DIPP released on 6th July, 2010 and it was made a major argument for allowing FDI in Retail. Which “industry source “did the DIPP rely on? The ASSOCHAM and Yes Bank were fully aware of the CIPHET report. Why not they made efforts to correct the Government figures is again a big question? It is further questionable that when CIPHET study figures were available why the “industry estimates” were quoted by DIPP? If the CIPHET study was not correct, why the Government did not contradicted the figures quoted by CIPHET up till now.

The Prime Minister’s address to the nation also mentions that one third of fruits and vegetables which at present are wasted can be saved by building new warehouses, cold-storage and modern transport system. Whereas on the other hand, the Notification issued on 20th September, 2012 while defining the backend infrastructure does not mention "cold storage and modern transport system."

There are more questions attached to this issue. What was the figure of food wastage quoted in the Cabinet note on the basis of which the Cabinet allowed FDI in Retail Trade If it was 40% why not the Minister of Food Processing and Minister of Agriculture contradicted the figures since they were aware of real figures?  The statement of Delhi Chief Minister Mrs. Shiela Dixit made in presence of Mr. Anand Sharma on 1st October, 2012 at a Rally at her residence in which she stated that 30% fruits and vegetables go waste due to unavailability of cold storage, gives an impression that even the Chief Ministers of States were also briefed the figure of food wastage to the tune of 40%.

Interestingly, the nations like USA and Canada where global retail giants are operating their business activities are actually having the wastage of 40% food, as per reports available.

This is a unique case where the elected government is putting out false propaganda against the interests of the masses of people to support the multinational companies. It is not late even now. The CAIT appeal is for the government to show its bona fides and withdraw the anti-people notification on FDI in 

retail.

For more information please contact CAIT, Secretary General, Mr. Praveen Khandelwal@9891015165, 9310199771