Ummid Assistant

Jamia Millia launches courses on China, Afghanistan

IGNOU launches value education programme for teachers

Welcome Guest! You are here: Home » National

FDI in retail will destroy livelihoods of 'crores', says CPI-M

Friday November 25, 2011 05:04:48 PM, IANS

Related Articles

Parliament adjourned again, this time on cabinet nod to FDI

The government's decision to allow foreign equity in retail drew flak from opposition parties in parliament Friday, forcing the adjournment of both houses and ending the first week of the winter session  »

India opens doors to global retail chains

Fact sheet on India's retail trade industry

New Delhi: The Communist Party of India-Marxist (CPI-M) Friday said the decision to allow FDI in multibrand retail "will destroy the livelihoods of crores of small retailers".

It will also "lead to monopolization of the retail sector by the MNCs", the party said in a statement.

"The government seems to be more eager to meet the demands of the US and other Western governments and serve the interests of the MNCs like Walmart, Tesco and Carrefour rather than protect those of its own people.

"The conditions imposed by the government are insignificant and will not provide any effective safeguard to any section."

It said the investment floor of Rs.520 crore ($100 million) was "insignificant for giant retailers like the Walmart, Tesco, Carrefour, which are multibillion dollar companies.

"The restriction of foreign retail outlets to cities of over 10 lakh population is also meaningless because those are precisely the places where the MNCs want to go, to tap the lucrative segment of the market. The big cities are also where small retailers are mostly concentrated.

"India has the highest shopping density in the world, with 11 shops per 1,000 persons. There are over 1.2 crore shops in India employing over 4 crore persons. Ninety-five percent of these shops are run by self-employed persons in less than 500 sq ft area.

"These small shopkeepers in the urban areas are going to be hit the hardest with the entry of the MNC retailers.

"International experience shows that supermarkets everywhere invariably displace small retailers. Small retail has been virtually wiped out in the developed countries like the US and Europe.

"South East Asian countries had to also impose stringent zoning and licensing regulations in order to restrict the growth of supermarkets, after small retailers were getting displaced," it said.

The statement added: "International experience has shown that procurement by MNC retailers do not benefit the small farmers. Over time, they receive depressed prices and find it difficult to meet the arbitrary quality standards.

"Allowing procurement by MNCs is basically an attempt by the government to whittle down its own procurement responsibilities. This will have an adverse impact on food security.

"The small manufacturers will also get squeezed. Predatory pricing by the MNCs will eliminate competition and establish their control over the supply of a range of commodities, including essentials like food.

"The domestic market will get flooded with goods procured from foreign countries.

"The claim that this will bring down retail prices for consumers is utterly bogus. Great monopoly power and storage capacity for the big corporates will rather promote hoarding and profiteering.

"Over the last several years the MNCs involved in cash and carry trade in India, which had been permitted earlier by the government, have routinely violated the prohibition of directly selling to consumers, but the government did nothing to stop them.

"Similarly, the so-called regulatory measures based on a system of self-regulation will also be inconsequential, especially since there is no mechanism to ensure the enforcement of the conditions.

"The MNC retailers and foreign governments have been pressurizing the centre for opening up this sector since long.

"It was the opposition from the Left Parties, which had prevented the UPA-I government from taking this move. The UPA-II government has now fully succumbed to those pressures from vested interests."






Bookmark and Share

Home | Top of the Page


Note: By posting your comments here you agree to the terms and conditions of

Comments powered by DISQUS







Top Stories

Sharad Pawar slapped

Union Agriculture Minister Sharad Pawar was Thursday slapped in the face by a Delhi youth who had only four days ago kicked former minister  »

They're all thieves, says Pawar assaulter

Shoes thrown at others, Pawar first to be assaulted

Why should I react, Pawar asks after assault

Pawar supporters protest across Maharashtra


  Most Read

Logjam over price rise, Telangana; Parliament stalled for 3rd consecutive day

Parliament didn't function for the third consecutive day of its winter session Thursday despite peace being in sight after the government and opposition agreed to a debate on  »

Top Maoist Kishanji killed in West Bengal

The Maoist movement suffered a major blow when one of its top leaders, Mallojula Koteshwar Rao alias Kishanji, was killed Thursday by security forces in West Bengal, officials said. A Central Reserve Police Force (CRPF) official told IANS that a body resembling the politburo member of the outlawed Communist  »


  News Pick

26/11 survivors live with ugly scars and deafening silence

Life moves on, but what remains are the ugly scars. Nearly three years after the gruesome attack on Mumbai, 26/11 is still fresh in the minds of survivors and  »

Ally Trinamool joins BJP, Left in opposing FDI in retail

Even as the union cabinet meets Thursday to decide on allowing foreign direct investment (FDI) in multi-brand retail, key opposition groupings - the National  »

The pros and cons of foreign equity in retailing

Farooq, Omar crumbling to Congress pressure: Mustafa Kamal

Mustafa Kamal, the ousted chief spokesman of the National Conference, says his nephew and Jammu and Kashmir Chief Minister Omar Abdullah and his elder brother and party  »


Picture of the Day

The Prime Minister, Dr. Manmohan Singh and the Emeritus Senior Minister, Mr. Goh Chok Tong, unveiled the bust and the Marker of Pt. Jawaharlal Nehru, at Asian Civilizations Museum, in Singapore on November 20, 2011.

(Photo: M. Asokan )



RSS  |  Contact us


| Quick links



Subscribe to

Ummid Assistant






About us




Government Schemes










Contact us





    Disclaimer | Terms of Use | Advertise with us | Link Exchange is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

© 2010 Awaz Multimedia & Publications. All rights reserved.