July 2014
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145 Reads
Abstract: Agribusiness is a business related with farming. This includes production, marketing and distribution of agricultural and agro-based products. FDI has opened new dimensions for foreign retailers in agri-business. In India, FDI is banned in agriculture, excluding floriculture, horticulture, development of seeds, animal husbandry, pisciculture and cultivation of vegetables, mushrooms, services related to agro and allied sectors and tea plantations. The opening up of 51% stake in Multi Brand retailing remains a challenge for the agribusiness activities. Functioning of FDI has raised complexions in diversification of products and prices. The entry of multinational companies (MNCs) in the single brand segments and heavy investments by many MNCs in contract farming had offered both prospect as well as challenges. In this context, purpose of this paper is to show the overall trend of FDI in organised and unorganised agribusiness sector. The paper deals on debate whether MNCs retailers will have threat on small and medium enterprises (SMEs) or it will be profitability for farmers and local agri-business. The methodology for this work includes analytical study of statistical data from FIPB, Department of Industrial Policy and Promotion (DIPP), and UNCTAD etc. Keywords: agribusiness, FDI, MNCs, investment, retail.