With certain conditions imposed by the State Agriculture Marketing Board and the state government, the German multinational Metro Cash & Carry was finally presented a six month licence to sell farm commodities and other food items to hotels, restaurants, provision stores and other institutional buyers in West Bengal. With this move, Metro Cash & Carry, will be able to open its first outlet in Kolkata in 6-8 weeks.

Speaking on this, Frits van Peski, member of the Executive Board of Directors, Metro Cash & Carry India said, “We are delighted that we have received our APMC (Agricultural Produce Marketing Committee) licence as it is crucial to our business model.”

The company has been debarred from its operation in the agricultural trade. It will also not be eligible to sell any commodity to the wholesalers in less than Rs 1,000. It has also been decided that the company’s operation would be reviewed after March 31, 2009 before granting further operational licence.

The decision has been conveyed to the company. It may be recalled that the company had threatened to quit its entire business operations worth Rs 300 crore, if the licence was not renewed by October 10. 

After the government conveyed the decision to the German company today, the company spokesman told mediapersons that they would continue their operations since they had already invested about Rs 150 crore in West Bengal. Accordingly, the company will open six more outlets in the city and elsewhere.

He further said that the company would decide about their future Rs 500-crore investment plan after reviewing their present operational venture.