As the opposition parties raise the political pitch against FDI in retail, are they guilty of doublespeak? The Chief Ministers of Odisha, Bihar and Madhya Pradesh have said at various times that bringing in FDI will hurt Indian farmers since multinationals will tie the farmers into contracts.
"If FDI comes in infrastructure, it is all right but not in agriculture. They want our markets. Why should we let them have it? Shiny markets won't help farmers. We won't allow this in Bihar," said Chief Minister Nitish Kumar.
But all three states have signed - or about to sign - with global consultancy firm Ernst & Young to attract private retailers to buy directly from farmers.
Odisha has been the first off the blocks. Siddhartha Das, Executive Director, Ernst & Young says, "When we came in, we saw there is a gap between the farmer and the big Indian retail chains, Future Group, for example. How to get the farmers and the Future Group together was the big question."
Bihar and Madhya Pradesh are next to follow suit. Mr Das adds, "They are coming on board mostly by the end of this year."
These states argue that they are OK with Indian retailers like Reliance or Big Bazaar but not with Wal-Mart or Carrefour.
In his defence, Biju Janata Dal's Pinaki Mishra says, "Well you know global retailer size is humongous. I don't think any of our retailers come anywhere near the retail sector."
But experts say that the existing government which controls the mandi system is far more exploitative.
"Trust me, there is no one more exploitative than that middle man below the mandi or perhaps the man in the mandi. With Walmart definitely the future is much more transparent," Mr Das says.
Moreover, if there is such an aversion to the MNCs why hire an American firm Ernst and Young?
Madhya Pradesh BJP spokesperson Dr Narrotam Mishra says, "We will ensure that the poor are not harmed by our decisions."
Is this a case of political hypocrisy - one standard for their state, and one for New Delhi?
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
