Left now objects to expansion by Indian retailers
After training its guns on MNC retailers such as Wal-Mart for trying to enter the Indian market, the CPM has now proposed that “stringent regulations” be adopted to curb the “aggressive” expansion of Indian corporates in the retail segment.
By TNN |
NEW DELHI: After training its guns on MNC retailers such as Wal-Mart for trying to enter the Indian market, the CPM has now proposed that “stringent regulations” be adopted to curb the “aggressive” expansion of Indian corporates in the retail segment. The party also asked the central government to take steps to prevent the “emergence of private monopolies in retail trade”.
Stating that the expansion of Indian corporates in the retail sector is having an “adverse impact” on the livelihoods of many in the sector’s unorganised segment, the CPM has asked that a system of licensing be introduced for organised retail. Proposing that the government take “immediate initiatives” to frame a national policy on regulating organised retail, the party has given suggestions on the licensing system, the government’s role in preventing private monopolies and on safeguarding farmers’ interests.
Party general secretary Prakash Karat, who held a press conference to introduce the proposals, said the ideas would be circulated amongst all other political outfits and the government. The Marxist leader said the CPM was often asked to spell out its stand on big Indian corporates entering the retail segment, given the party’s opposition to FDI in retail trade. “Someone said the CPM was opposed to FDI in retail because of Reliance; we are as much concerned about protecting the small retailers (from Indian corporates),” Mr Karat said.
The proposals suggest that dedicated committees be set up at the urban local body level - with representation from small retailers - to grant licences to organised retailers. They propose that the licences be given on the basis of a population criterion: “...not more than X number of large format retail stores per Y population. The criteria may vary between states and cities....” the CPM statement said. It also said that corporate entities should not be allowed to operate retail outlets below a specified minimum floor area.
It asked for separate sets of regulations for each retail format, based on floor area, and suggested that an “appropriate cap” be fixed on the total number of large format retail stores in an area and the maximum floor area for a retail outlet. In the case of “giant retail outlets” such as hypermarkets, the party has asked that they be located outside city limits.
On the government’s role in preventing private monopolies, the party said it was important for the government to ensure its presence in the market. It asked for government marketing agencies to be revived and suggested partnerships between such marketing agencies and co-operatives, especially in food retail.
In its proposals for safeguarding farmers’ interests the party, among other things, said that the handing over of farmland to food retailers for contract farming should not be permitted, and the contract farming should be regulated and monitored by the government to protect the interests of farmers and that food retailers or other agribusiness companies should not be allowed to hoard foodgrain stocks. It has asked that necessary changes need to be made to the Model APMC Act of the Centre as well as the state governments so as to incorporate the regulations suggested.
Stating that the expansion of Indian corporates in the retail sector is having an “adverse impact” on the livelihoods of many in the sector’s unorganised segment, the CPM has asked that a system of licensing be introduced for organised retail. Proposing that the government take “immediate initiatives” to frame a national policy on regulating organised retail, the party has given suggestions on the licensing system, the government’s role in preventing private monopolies and on safeguarding farmers’ interests.
Party general secretary Prakash Karat, who held a press conference to introduce the proposals, said the ideas would be circulated amongst all other political outfits and the government. The Marxist leader said the CPM was often asked to spell out its stand on big Indian corporates entering the retail segment, given the party’s opposition to FDI in retail trade. “Someone said the CPM was opposed to FDI in retail because of Reliance; we are as much concerned about protecting the small retailers (from Indian corporates),” Mr Karat said.
The proposals suggest that dedicated committees be set up at the urban local body level - with representation from small retailers - to grant licences to organised retailers. They propose that the licences be given on the basis of a population criterion: “...not more than X number of large format retail stores per Y population. The criteria may vary between states and cities....” the CPM statement said. It also said that corporate entities should not be allowed to operate retail outlets below a specified minimum floor area.
It asked for separate sets of regulations for each retail format, based on floor area, and suggested that an “appropriate cap” be fixed on the total number of large format retail stores in an area and the maximum floor area for a retail outlet. In the case of “giant retail outlets” such as hypermarkets, the party has asked that they be located outside city limits.
On the government’s role in preventing private monopolies, the party said it was important for the government to ensure its presence in the market. It asked for government marketing agencies to be revived and suggested partnerships between such marketing agencies and co-operatives, especially in food retail.
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It also asked for guidelines to prevent “predatory pricing” and “below-cost sales”. It said state governments or urban local bodies should levy a cess on the VAT on all goods sold by large format retail outlets (in public and private sectors) in order to create a “level-playing field”. In its proposals for safeguarding farmers’ interests the party, among other things, said that the handing over of farmland to food retailers for contract farming should not be permitted, and the contract farming should be regulated and monitored by the government to protect the interests of farmers and that food retailers or other agribusiness companies should not be allowed to hoard foodgrain stocks. It has asked that necessary changes need to be made to the Model APMC Act of the Centre as well as the state governments so as to incorporate the regulations suggested.
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