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West Bengal Invites Foreign Players For Cold-Storage Chain


By Sumit Kumar, Section Business
Posted on Thu Jan 10, 2008 at 04:58:45 AM EST

While Bhattacharjee sees light in inviting foreign cos, he lacks support in his party

Opening gates for foreign players in the state, West Bengal chief minister Buddhadeb Bhattacharjee on Wednesday invited them to set up cold chains in the farm-to-table retail segment, but maintained that they are not required at the front end. "We want private companies and foreign firms to join us to improve our market mechanism, to set up cold storages and cold chains," Bhattacharjee said.

Shortly after taking over as the chief minister for the second term in 2006, Bhattacharjee allowed German wholesale player Metro AG to enter the state but denied entry to foreign retailers like Wal-Mart.

"The major problem in West Bengal is that we lack market mechanism. The question is how to preserve potato and vegetable. We must have more cold storages and cold chains," he said, at the India International Potato Expo 2008 here.

West Bengal, which is the secondlargest potato producing state in the country, has 390 cold storage units with a combined capacity of 52 lakh tonne.

According to the West Bengal Cold Storage Association, at least 15 per cent of the capacity is unused.

The state's food processing industry houses prominent investors like PepsiCo, which has tied up with farmers for a special variety of potato that it needs for its Frito-Lays chips, and Del Monte Pacific Ltd, which is setting up a pineapple and mango processing plant. Companies like Unilever and Nestle have also expressed interest in setting up food processing units here.

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"If foreign players come here and join us in processing and making potato chips, then they are most welcome," said Bhattacharjee. "Potato powder has huge demand in West Asia and West Bengal is ready to provide them," he said.

Bhattacharjee said he has requested Union agriculture minister Sharad Pawar to set up a campus of the Shimla Potato Research Institute, under the Central Potato Research Institute (CPRI), in West Bengal.

The Union Government is also setting up its first integrated potato development and export centre in Chinsura in Hooghly district with an investment of Rs 6 crore.

... but co-ordination panel strikes jarring note ENS ECONOMIC BUREAU KOLKATA, JANUARY 9 THE West Bengal chief minister's plans to open up farm-to-table retail to big private players have found roadblocks in his own party. Apart from the Forward Bloc and RSP, who have all throughout opposed the move, it is now the CPI (M) backed by Coordination Committee of State Government Employees that has openly declared that it is against big business in `retail', without narrowing the term to mean only farm retail. Nearly 85 per cent of the 400,000-odd government employees in the state are members of the Coordination Committee.

Briefing the press at its office, the Coordination Committee's newlyelected secretary, Ananta Bandopadhyay, said the entry of big business in retail must be stopped immediately.

"Big multinationals or even big domestic firms like Reliance are entering the retail market," Bandopadhyay noted. "If this happens, then farmers will be ruined. At this moment, in our state, the glittering shopping malls are indicating the truth," the Coordination Committee leader said.

These malls are selling everything from clothes, shoes and jewellery to household goods and grocery, he noted. CPI (M) sources said the party's central committee has already decided that big domestic players are welcome in the retail segment, but with some restrictions.

They said the Coordination Committee's stand exposes the divide in the party over the issue. The Coordination Committee's sudden stand against retail in general has queered the pitch for the Chief Minister, the sources said.

Source: TIE, Jan-10-08

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