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worst fears of organised big retailers, particularly
those involved in retailing agro-products in large format
stores, may come true. They could be banned or restricted
from operating within states by respective state governments
as they have rights to grant or restrict trade licenses
within their jurisdiction, says the Minister.
"It's within a state government's jurisdiction
to lay down guidelines for large retailers. State governments
are the ones authorised to grant trade licenses to all
units, including those proposed by large retailers.
So, if a state wishes to restrict entry, it is free
to do so," said Kamal Nath.
State governments like the left ruled Kerala and West
Bengal as well as DMK ruled Tamilnadu are keen to restrict
entry of big retail in their states, ostensibly to protect
livelihood security of small traders, by enacting laws
which among others would effectively ban or restrict
entry of large format retailers like Reliance, Birla,
ITC, Wal-Mart, and the Future Group, in their states.
While, West Bengal Chief Minister BuddhaDeb Bhattacharjee
has asked retailers like Reliance to remain out of agro-produce
business, his counterpart in Kerala is against the entry
of big retail in all its formats. DMK Chief and Chief
Minister Karunanidhi has also ordered study of the methods
adopted by the left governed states to restrict the
role of big retail in his state.
"The Centre's regulations on organised retail,
scheduled by the year-end, will also consider the recommendations
put forth by CPM before the policy is announced,"
added Kamal Nath, while speaking on the subject.
Protest against Retain chains
In the meanwhile, a group of traders and activists
have launched a fortnight long country-wide agitation
against retail chains by staging a demonstration outside
a prominent outlet in Delhi on August 1, the day of
starting the agitation.
Scores of protesters, belonging to Confederation of
All India Traders, All India Hawkers Association and
India FDI Watch, staged the sit-in in front of 'Reliance
Fresh' outlet in Paharganj in New Delhi district as
part of their "Retail Democracy Fortnight".
The activists allege that the government was allowing
corporations to "hijack retail trade of the country
which will lead to monopolistic practices in the market".
CAIT Secretary General Praveen Khandelwal alleged that
the policy encouraging corporate retailers would deprive
millions of people who are dependent of small shops.
"The government has no plan to provide alternative
jobs to those affected by the spread of corporate chains.
Government should understand that wiping out small retailers
will prove to be detrimental to Indian economy,"
he alleged.
The traders plan to observe August nine as "Retail
Democracy Day", coinciding with the Quit India
Day. Nationwide protests will be organised on that day,
including a rally in the capital.
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