CPM opposes move to allow FDI in multi-brand retail

NEW DELHI: CPM on Saturday opposed the suggestion by the Inter-Ministerial Group ( IMG), headed by chief economic advisor Kaushik Basu, that the government should allow FDI in multi-brand retail.

The CPM politburo said FDI in this sector would lead multinational corporations to have monopoly over both farmers and consumers and manipulate prices to their benefit. "The specious arguments put forward by IMG that entry of MNC retail giants like Walmart will enhance efficiency of the supply chain and bring down the trading margins belie international experience," the party said.

Observing that global experience showed that state regulation of these giant retailers was "always rendered ineffective", it said, "In fact, MNCs will enjoy much greater monopoly power over both farmers and consumers and manipulate prices to their benefit while, at the same time, livelihood of millions of small unorganised retailers will be virtually wiped out."

The party accused the government of having "utterly failed" to curb the relentless rise in prices and said IMG's suggestion was "to utilize that very failure to push for more concessions to multinational companies like Walmart".

Maintaining this was "yet another instance of pro-MNC neo-liberal framework" which adversely affected the people, CPM said it was "shocking that the Group of Ministers has refused to accept" Supreme Court's direction to strengthen the public distribution system and distribute food grains to the people which is also one way to control market prices.