German wholesaler Metro Cash & Carry has threatened to revise its investment plans in India after becoming embroiled in a dispute over the opening of its first store in West Bengal.

The state government has refused to renew its Agricultural Produce Marketing Committee (APMC) licence, which would enable Metro to source agricultural products directly from farmers.

"If Metro Cash & Carry does not get the required licence, this will be the death knell for any future German investment here in the eastern region," German consul-general, Gunter Wehrmann, warned at a press briefing yesterday (25 September).

The company has agreed to hold off on any decision until Monday, when a ruling from state government is expected.

However, Martin Dloughy, MD of Metro Cash & Carry India, said: "We will be very disappointed if the licence is not issued and it will adversely impact our whole business concept, which is now compelling us to relook at our investments."