Tyranny of farm taxes
The Centre believes that allowing foreign direct investment (FDI) into India's retail sector will benefit farmers. This would happen through increased direct purchases of produce and investments in warehouses, refrigerated vans and other back-end supply chain infrastructure. But this premise ignores the influence of two major hurdles, apart from the general political opposition to FDI, on the ground — antiquated Agricultural Produce Marketing Committee (APMC) laws and a plethora of local trade-distorting taxes.
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