Speaking at the two-day conference on 'Winning with Intelligent Supply Chains', organised by the Federation of Indian Chambers of Commerce and Industry (Ficci) in New Delhi , Minister of State for Food Processing Industries Subodh Kant Sahai said: "India may open up its $330-billion retail market after being ascertaining that kirana stores will not be affected by big retailers."

He said the Department of Industrial Policy and Promotion  has engaged an agency for an in-depth study on the impact of foreign direct investment in food retail on mom-and-pop stores and its report is expected in March next year.

Sahai, however, allayed fears that big retailers were not going to spell doom for small players.

"Some people, particularly ex-politicians without job, are making cheap slogans against organised retail without actually realising that they were hurting the farmers," Sahai said. "Kiranawalas are everywhere and they are not being harmed at all," he added.

Sahai said the government's main aim was to provide jobs to the farmers, which could happen in a big way when retailing industry grows in India.

"Contract farming has also become another topic of debate, but the government is clear that if we want to help farmers we need to have farmers in cluster farming," the minister said.

Sahai said in the 11th Plan the government will allow a provision of Rs 10 crore (Rs 100 million) for integrated supply chain, besides mulling over tax incentives for development of other infrastructures, such as cold chains.