TRADERS WILL STRONGLY OPPOSE ANY MOVE TO BRING FDI IN RETAIL

Terming the Government's efforts to form consensus on FDI in multi-brand retail without consulting traders as 'highly undemocratic', the Confederation of All India Traders (CAIT) today said foreign investments by MNCs will hijack the country's retail trade which would lead to closure of majority of small businesses and job losses for lakhs of people engaged in the sector. The CAIT has announced that any move to allow FDI in Retail will be stoutly opposed by the trading community across the Country. The CAIT will observe forthcoming August – the Quit India Day as Quit FDI Day all over the Country by the traders. Series of Sit-In and Protests will be held across the Country on the said day.

At a Press Conference held today at New Delhi, CAIT Secretary General Praveen Khandelwal, Naresh Sirohi, General Secretary All India Kisan Morcha and Pradeep Singal, Working President of All India Transport Welfare Association jointly released two research books “ Impact of FDI in Retail on Farmers and Impact of FDI in Retail on Road Transport”. The CAIT has also thanked all political parties who have supported the protest against FDI in Retail.

The CAIT while strongly criticizing the role and attitude of the Central Government on this issue said that entire political spectrum is opposing FDI in Retail whereas on the other hand the credible organizations of Traders, Farmers, Transporters, Labour Unions, SMEs and even the Consumer organizations are opposing the move, yet the Government is repeatedly advocating the need of FDI in Retail. "People of India have every right to question the intent and logic behind FDI in multi-brand retail which has been severely opposed by majority of Indian population," CAIT said.

CAIT while quoting  Arjun Sen Gupta Committee report of Year 2005 which stated the presence of about 5.80 crore business establishments including small and medium industries, in unorganized sector whose annual growth was estimated @ 10%, it is estimated that about 2.5 crore traders were part of the unorganised sector in the report of 2005 which amply proves that presently about 5 crore business establishments and livelihood of more than 22 crore people in the Country is at stake with the introduction of FDI in Retail which will lead to large scale unemployment in the Country as the MNC’s will control and dominate the retail trade.

The living examples of USA, UK, Australia, New Zealand and other European Countries where the MNC’s are in dominating position and have entered into monopolistic mode & the ultimate sufferer is the common men, are being deeply ignored by the Govt.

The CAIT further said that 53 cities identified by the Govt for allowing FDI in Retail Trade assumes much significance as these cities are the “feeder cities” supplying goods to other cities in their respective states. Allowing opening retail super markets in these cities will virtually amounts to handing over retail trade to MNCs

The government's push to open up the retail sector is a result of 'Corporate pressure', is evident from the fact that instead of consulting with small enterprises, the Government preferred to meet only the representatives of big corporate chambers along with those who were supportive of the move to allow foreign investments in the retail sector, right from the beginning.

The CAIT asked the Government to openly debate about the pros and cons in Parliament and in public. Otherwise, it will be highly undemocratic to implement bureaucratic order just to benefit and please few at the cost of millions. The unanimous report of the Parliamentary Standing Committee should be made the subject.

The CAIT holds firm view that instead of laying red carpet for MNC's, the government should focus on other corrective measures which needs to be taken to further strengthen the existing retail trade. Instead of inviting FDI in retail, the government should work out a comprehensive strategy to upgrade and modernize the existing retail trade.