Khadya Niti

PSCC – Foreign and Domestic Investment in Indian Retail

khadyaniti — Mon, 16 Jun 2008 13:13:54 +0000

Parliament Standing Committee on Commerce invites suggestions of public on Foreign and Domestic investment in Retail Sector.
The department related parliamentary standing committee on commerce, headed by Dr. Murli Manohar Joshi, M.P., is examining the subject of Foreign and Domestic Investment in Retail Sector.

The committee has already heard some oral evidence and has also undertaken on the spot study visits to some places. The Committee would also like to receive inputs from a wider cross section of stakeholders and the public at large.

Please do submit your views and suggestions to the Committee. You may send your written memoranda (either in English or Hindi) on the above subject to :

Shri Surinder Kumar Watts
Director
Rajya Sabha Secretariat
240, Second Floor
Parliament House Annexe
New Delhi-110001
Tel: 011-23034240
Fax: 011-23013158

You can also email at watts@sansad.nic.in

Those desirous of being heard in person may indicate their willingness in their written suggestions / views.

Note: The last date for submission is 12 July 2008.

( A reference draft is given below. You are welcome to use it for drafting your memorandum )

In Solidarity !
Dharmendra Kumar
Director
India FDI Watch
M-9871179084
Email: dkfordignity@yahoo.co.uk

dkfordignity@gmail.com
======================

Memorandum to the Standing Committee on Commerce on Foreign and domestic investment in retail sector

To,

Shri Surinder Kumar Watts
Director
Rajya Sabha Secretariat
240, Second Floor
Parliament House Annexe
New Delhi-110001
Tel: 011-23034240
Fax: 011-23013158

Email: watts@sansad.nic.in

Sir,

India is a land of retail democracy- hundreds of thousands of weekly haats and bazaars are located across the length and breadth of our country by people’s own self-organizational capacities.
Our streets are bazaars / open markets - lively, vibrant, safe and the source of livelihood for millions.

In a country with large numbers of people, and high levels of poverty, the existing model of retail democracy is the most appropriate in terms of economic viability and ecological sustainability. The huge hype of the entry of corporate retail into India is infact nothing but a HIJACK of our vibrant, well organized, multi faceted, quality conscious, consumer friendly, Retail Service Economy.
Corporate retail will not create two million jobs — it will destroy 38 million livelihoods – the backbone of Indian unorganized retail economy.
People involved in running small shops, redis and street markets. The growth being projected as a new contribution to the economy hides the destruction of the contribution of the 40 million people involved in small retail to the Indian economy. Indian trade is highly organized and has existed for centuries on the basis of low cost and high efficiency. India needs the self organized skills of our traders, shopkeeper, hawkers and vendors both to provide employment to millions and affordable friendly community service for basic needs to society.

Our retail democracy is characterized by :

1. High levels of livelihoods in retail with nearly 40 million employed which accounts for 8% of the employment and 4% of the entire population.
2. High levels of self organisation.
3. Low capital input
4. High levels of decentralization

India has the highest shop density in the world, with 11 outlets per 1000 people. This number is very high compared to international average. It is the high level of decentralization in Indian market that keeps all these businesses running.
The existing decentralized retail environment in India, is the model for the future democratic, decentralized markets of the world.
Certainly not the so called “Undeveloped Retail”, requiring massive inputs of centralized, global, whimsical, unregulated, injection of speculative capital and logistics operations, governed by investor board rooms.
Unfortunately, there are people who are favouring the model that is increasingly being rejected by the developed countries and large sections of civil society in developed countries, who do not want to be force fed by a handful of consolidated retail chains.

The entry of the giant corporate retail in India’s food market will have direct impact on India’s 650 million farmers and 40 million people employed in retail. If we take examples of other countries, we can see that nowhere ( YES NOWHERE in the developed world, even where sophisticated Independent Market Regulatory Policies and Anti Monopoly regimes, with legal teeth and crippling penalty imposing powers, are in place ! ) have these corporations ever thought about the fragile connections between the People, Society and the Ecology.
Entry of Mega Corporations in Indian food market, will have disastrous political, social, economic and ecological outcomes in time to come, going much beyond the existing stakeholders.

IMPACTS OF CORPORATE ENTRY INTO RETAIL :

SOCIO – ECONOMIC IMPACT :

Livelihood of millions of small and big shopkeepers will be uprooted to set up the chain of corporation owned retail.

After farming, retailing is India’s major occupation. Census 2001 provides us the most authentic data on people involved in retail. According to it, there were 269 lakh `main’ and 24 lakh marginal workers in wholesale and retail trade. That is, nearly three crore people depend on trade, 1.1 crore in the urban and 1.9 crore in the rural areas. Of the total, nearly 1.7 crore are not even matriculates. Thus, the livelihood of more than 30 million is involved and if we count the dependents, in the form of children and others, at least 120 million will be impacted by the retail revolution created by the large corporations. The growth of corporate retail will take place by destroying the self-organized small retail in India.

In past researches have shown us that a growth in unemployment leads to a series of social problems, like rise in poverty, alcoholism, domestic violence, indebtedness, suicides, crime and have major implications by even making the political situation unstable. If we are following the American model of Walmart where the store employee gets a salary which is below the poverty line and the top management gets millions of dollars every year. We are following a trend that increases the divide between rich and the poor and history has shown us that these divide have always led to social unrest and political turmoil of a nation.

In the long run the independence of the farmer will be lost

Reliance and Walmart are presenting themselves as friends and liberators of farmers and they refer to small traders as middleman, as if they are not giant middleman. Atleast in the case of small traders, farmers have a choice in terms of whom to sell. The APMC Acts also ensures that farmers would get a fair price and there would be no single buyer. In contrast, Reliance and Walmart are monopolistic (a situation when there is one buyer and too many sellers) buyers who in due course of time will drive down procurement prices of agricultural and manufactured products.

They claim that they are paying more to the farmers, but the truth is that they are at present procuring from the existing mandis all across the nation, and not straight from the farmers, so there is no question of paying better returns to the farmers.

We have seen the dismantling of mandis in last couple of years in various parts of the country. The primary force behind this was the corporate entry into the supply chain management of food. It is true that this year they have paid better prices to the farmers than the mandis, what is threatening is the reduction in the number of options the farmer is left with to sell his/her crop. Similarly for the manufactured goods, the prices paid by the retails giants might be more competitive than others, but after other retails are wiped out, how many options will the producer have to sell his/her products. Farmers will be bound to produce as per the will of these corporations and have to sell at cheaper prices as decided by them. The experience of farmers of west has been the like this. If we also keep moving in the same fashion and there is no doubt that our farmers will also have to face such situation.

Threat to the existing industries :

Moreover another threat that we will be facing is the opening of a giant pipeline of cheaply sourced goods from China, Thailand, ASEAN, etc., leading to livelihood losses on a massive scale in India. This will be very harmful for our manufacturing sector and specifically our small scale industries. Our manufacturing sector is not as developed as these countries and competing with them at this time means wiping out our manufacturing industries.

ENVIRONMENTAL AND HEALTH IMPACT :

Climate change :

Climate change due to air pollution is already becoming a threat to human life. Temperatures are rising, sea level is rising and glaciers are melting. The imperative in the contaxt of climate change is to prevent increase of use of fossil fuel. Our hawker, redi wala and kirana store is the solution to climate change.The Reliance , Bharti- Walmart model will increase fossil fuel use and carbon emissions. Further destabilizing the climate the super market Lorries will consume huge amount of fuel and lead to enormous pollution. Even if we go by conservative estimates the super market Lorries in India will generate more than 7 million tonnes of carbon dioxide per year, adding more problems to the already fragile environment of the country. When petroleum is becoming more and scarcer, the Lorries of these supermarkets will consume more than 1 billion litre of petroleum per year.

For refrigeration of the vegetables and fruits, and for air-conditioning the retail outlets atleast 20,000 megawatt of additional electricity will be needed. We need to burn millions of tonnes of coal everyday to get this energy; the carbon-di-oxide released from burning this coal will substantially affect the climate patterns of the country. We are already in a stage where the present levels of pollution, and carbon-di-oxide emissions is going to wipe out the human existence out of world in a few years, at this point creating any model that increases carbon-di-oxide in the environment will be disastrous to all of us, even the propagators of this model.

Excessive Pesticides and Preservative in our food : The giant retail chains have their own standards of buying farm produce impacting on agricultural practices of independent farmers. Without using excessive pesticides it is very difficult for a farmer to produce fruits and vegetable which fits into the standards, so they are forced to use excessive insecticides and pesticides. Once these farm produce come to the retail giants, they sell it throughout the year, by preserving them in cold storage, but in the process a lot of preservatives are also added to the food. So at the end when a consumer gets a â€œpreservedâ€ vegetable from these giant stores, it is full of toxic material harmful for consumption.

Packaging of food creates a huge amount of unnecessary waste in the already polluted cities, woefully lacking, immense investments in waste recycling and disposal of food packagings.
At a time when every city and City Municipal Council, in the country is struggling to solve the problem of solid waste and refuse from urban environments, increase in the packaging waste, due to the mall culture will add to their woes.
Will these corporates and investment barons carry the financial and health burden of this packaging waste recycling and food wastage ?

The existing land fills are getting filled and then more land of the poor farmers will be acquired to make landfills for Reliance’s and Walmart’s packaging waste.

Sir, Corporate Retail giants like Walmart, Carrefour, Reliance and Tesco have become agents of destruction of skilled and semi skilled employment, community sharing practices, and respect for the local environment.
These mega retail brands have become known as Big Brands, in developed economies for all the wrong reasons, leaving behind, priced out Farmers forced to leave farming, and consumers identified by Shopper ID and Shopping Points !!
Across the world, movements are going on to create local farmers markets and street markets to resist the monoculture and monopolies of supermarkets. But alas, they come too late in the developed world, where only a small minority of overall population, constitutes the farming community and merchants.
Farmers in developed countries have been priced out of sustainable farming by food retail companies, into social security nets of developed countries.
Not so in India, which lacks even a semblance of legal infrastructure, citizen livelihood security, unemployment benefits and social security investments by federal or state governments !!
India has the diversity and the decentralization that large sections of increasingly restive civil society of the developed countries are seeking.
Let us not allow the destruction of our rich and robust small scale retail at this important and decisive phase of our collective retail democracy.
Let us not vote for monopolies, trade blocs, angel investors, venture funds, hedge fund investors, speculators, and invisible corporate boardroom investors, by playing illogically and against our collective self interest, with the diversity of our existing retail infrastructure.
Let us protect our diversified, decentralized retail democracy. Save our livelihoods, save our farmers, save our traders, save our communities, save our citizens. Save India.
Charter of Demands :

A Enact strict law to ban all corporations in retail and agriculture

B Cancel all Wholesale Cash-N-Carry permission granted to foreign corporations & immediately stop the backdoor entry of Wal-Mart

C Formulate a National Policy on Regulating Retail Trade and Small Manufacturing Industries

D Implement the National Policy on Urban Street Vendors in all states and municipalities with central financial support.

E Institute Independent Special Task Force comprising representatives of stakeholders to Study on the Socio-Economic-Environmental and Cultural Impact of Corporate Retail

F Enact stiff binding laws against predatory pricing, cartelization, price fixation, speculation, mergers and anti-competitive conduct of corporations

G Repeal the APMC Model Act

H Decriminalize street vending by amendment to the Indian Penal Code, Police Act, and all relevant State and Municipal acts.

I Protect natural markets

Provide social security for hawkers, including pension, maternity, and health benefits

Liberators of Indian Retail Markets and ICRIER Survey

khadyaniti — Thu, 29 May 2008 11:34:54 +0000

Self Appointed Liberators of Indian Retail Sector demand OPEN MINDS – and WALLETS in Pre election Year

Arvind Singhal: Liberating the retail sector

http://www.business-standard.com/common/news_article.php?leftnm=lmnu2&subLeft=3&autono=324337&tab=r

The report must be read more carefully, and with an open mind, by those vociferous elements in the UPA government (read: Left parties), Mayawati of BSP, and our own Don Quixotes going by names such as India FDI Watch.

Retail giants operating without license
Making the Thiruvananthapuram Corporation a captive, retail giants are setting up shops in various centres in the city. Big Bazaar still functions without the Corporation’s licence, said Mayor C. Jayan Babu.

ITC Chaupal Fresh expansion on hold

ITC, the fresh vegetable retailer under the brands Choupal Fresh have hit a pause on their expansion plans. Currently the company operates 24 Choupal Sagars – large format rural stores that complement the e-choupal initiative. It also has 27 Choupal Fresh stores in Hyderabad, Pune and Chandigarh.

Australian farmers “ripped off” by supermarkets

In Australia, the Victorian Farmers Federation (VFF) has told the Australian Competition and Consumer Commission into grocery pricing that the major grocery chains are ripping off consumers and farmers by labelling the same products differently.

K. RAHEJA HyperCity to abandon neighbourhood store format

K. Raheja-owned HyperCITY Retail has abandoned plans announced last year to launch a neighbourhodd store format under the ExpressCITY banner.

Food prices are growing, but farmers’ share of the profit is not

The farmer’s share of the retail food dollar is about the same today as it was in the 1970s. Take corn, for example. According to economists at the American Farm Bureau Federation, the farmer receives less than 8 cents for the corn used in an 18-ounce box of corn flakes selling for $3.30 at the grocery store. It is pretty much the same for a loaf of bread. The farmer receives about 16 cents from a loaf of bread that sells for $1.78. The farmer’s share of a 5-pound bag of flour costing $2.39 is $1.10.

Govt needs to chalk out national retail policy: Assocham

The government needs to formulate a national retail policy to facilitate co-existence of both organised and unorganised retail, besides setting up an independent regulator for governing the retailing sector, a report by industry body Assocham says.

Decision on FDI in retail unlikely in UPA regime

apart from the broad political opposition, the Government has come under severe pressure from scores of trade and industry bodies from across the country against FDI in retail. A total of 44 trade and industry associations have represented to the Department of Industrial Policy and Promotion (DIPP)

Organised retail to capture 25 pc market by 2011

In a surprise finding that organised retail is growing faster than expected in India, a study has forecast that this segment could account for a quarter of the total retail revenues by 2011 from the current 8 per cent share.

Retail will drive growth of fruits and vegetables: Pawar

According to the ministry of Agriculture, Government of India, about 72 per cent of the fruit and vegetable produced in the country goes waste because of lack of proper retailing and adequate storage capacity. P K Mishra, secretary in the ministry’s department of agriculture and co-operation, said so while was speaking at a Fruit and Vegetable Summit organised by Confederation of Indian Industry (CII).

Indian Railways offering retail space
The Indian Railways is soon going to offer around 4,800 hectares of land to retail and logistics companies to set up retail outlets, agri-retail infrastructure and warehouses. Around 3,000 sites have already been identified by the railways across the country for the purpose.

Mom & Pop shops eye cooperatives to take on big retailers

Bhartiya Udyog Vyapar Mandal (BUVM), the biggest national-level association of mom and pop stores (kirana stores) that comprises 17,000 state- and district-level associations across 27 states, is planning to form co-operatives throughout India helping its members benefit from a common sourcing and shared infrastructure (logistics, storage and billing) platform.

AUSTRALIA calls for overhaul of planning laws

A report in Australia, commissioned by Urban Taskforce Australia, recommends a review of state planning laws regulating new supermarkets and large food stores.

Reliance to invest Rs 5,000 crore in converting 700-odd closed fuel pumps into malls/ multiplexes

Reliance Industries Ltd (RIL) which incurred a loss of about Rs 800 crore on operations of its 1,432 fuel stations during 2007-08 is looking at converting about 700 to 800 of them into shopping malls and multiplex halls.

Wal-Mart joins the dairy retail club

Wal-mart is the newest entrant in the diary procurement and retail business in Punjab. Wal-mart has been buying milk directly from cooperatives rather than from farmers.

RPG plans Rs 1000 crore expansion; revamping old stores

Eyeing Rs 1,800 crore turnover this fiscal, RPG group has planned aggressive expansion plans for its retail business.

VISHAL turnover amibitions

Vishal Group plans to increase its turnover from the current INR1,000 crore (USD248 million) to INR5,000 crore (USD1,240 million) by 2011. Vishal is having a revenue growth of 90-100% every year.

In Solidarity!

Dharmendra Kumar

Director

India FDI Watch

M-9871179084

Email:

dkfordignity@yahoo.co.uk

dkfordignity@gmail.com

Kerala Government to examine legal and regulatory aspects of Food Retail Chains in Kerala

khadyaniti — Thu, 13 Mar 2008 07:09:16 +0000

French supermarket prices rise 5% in a year

The French Economic Affairs Minister Christine Lagarde said yesterday that prices in French supermarkets increased by about 5% between February 2007 and February 2008.

Kerala to examine legal aspects for banning retail chains

http://economictimes.indiatimes.com/Retailing/Kerala_to_examine_legal_aspects_for_banning_retail_chains/articleshow/2854960.cms

THIRUVANANTHAPURAM: The CPI(M) led LDF government on Tuesday said it would examine all legal aspects of bringing forward an ordinance to ban retail chains of national and multinational companies.

Replying to a calling attention on the difficulties faced by small time traders after the arrival of multinational retail chains, Food and Civil Supplies Minister C Divakaran told the assembly today that the government welcomed the idea of banning retail chains of big companies and would examine the legal aspect for the same.
He said the government had already sent to the Centre, a draft bill of the State’s Essential Commodities Act, to control retail chains of big companies and was waiting for its approval.

To face the challenge from these companies, the government would strengthen and modernize the Public Distribution System and open more Civil Supplies Corporation outlets. There were also plans to open hi-tech super markets in towns, he said.
Congress MLA N Sakthan spoke of the problems faced by lakhs of small traders and asked the government to make necessary amendments in the Panchayati Raj Act to prevent the entry of retail chains of big companies.

Protests in Kerala, govt allies say it’s endorsing organized retail

Organized retail chains have faced violent campaigns against them in the state, with a number of these protests led by constituents of the ruling Left Democratic Front

http://www.livemint.com/2008/03/09230531/Protests-in-Kerala-govt-allie.html

Kochi: The Kerala government’s proposed 10% surcharge on the profits of big retail chains, paraded as a hurdle to the entry of the giants, has run into trouble, with members of its own ruling communist alliance condemning the plan as —actually—an endorsement of organized retail.

Kerala minister for food and civil supplies C. Divakaran said the proposal will be opposed at all levels and claimed the “surcharge is an incentive to retailers.”

Organized retail chains have faced violent campaigns against them in the state, with a number of these protests led by constituents of the ruling Left Democratic Front.

Reacting to the criticism, state finance minister Thomas Isaac said: “There is nothing like legitimizing this. It (organized retail) is there and we have decided to tax them. It is true that there has been stiff opposition to their entry into the state.

But, the law does not prevent them from setting up shops and imposition of additional levies on these big chains has been demanded by almost all sections of society.”

Local self-government minister Paloli Mohammed Kutty admitted that the law does not prevent big retailers from operating in the state, but said his party would try to find ways to oppose their entry. If local self-governments, such as panchayats, municipalities or corporations, withhold licences to the retail chains, they approach the tribunal for local self-government institutions and get the orders, he said. Indeed, the tribunals often rule in favour of the corporations.

In Solidarity!

Dharmendra Kumar

Director

India FDI Watch

M-09871179084

Email:dkfordignity@yahoo.co.uk, dkfordignity@gmail.com

Brihat Bangalore Mahanagar Palika (BBMP ) Office locked by Farmers and Vendors

khadyaniti — Thu, 13 Mar 2008 07:02:04 +0000

Brihat Bangalore Mahanagar Palika (BBMP ) Office locked by Farmers and Vendors :
Dear Friends,

Farmers and vendors blocked and locked the Brihat Bangalore Mahanagar Palika (BBMP) office -

(as reported by Mr. Babu Khan, Campaign Organizer, India FDI Watch, Bangalore)

Bangalore, March 11^th 2008 : Tuesday a busy day for K.R.Puram farmers, traders and vendors, because Tuesday is the weekly market day in this area. Many farmers, local retailers and vendors usually comes to K.R.Puram to sell and purchase the goods. Local people of surrounding areas also visit the market because the vegetables and other commodities are available at cheaper rates. This market is having a history of more than 50 years and the daily market started almost 15 years back to support the local retailers and consumers. Farmers are coming here as far as from 60-70 Kms from rural areas. The business usually starts around 4am in the morning and continues till the evening. More than 2000 local vendors and retailers depend on the market. Farmers, coming from the rural area, to sell vegetables have to pay tax for each bag and vendors also pays daily tax for the small space they occupy.

Along with India FDI Watch, hundreds of farmers and vendors marched towards BBMP office, shouting slogans. They blocked and locked the office, the Deputy commissioner of Bangalore arrived and discussed the issue with protesters and announced that, the issue will be solved within 2 days. For two days no tax will be collected from the farmers.

Recently an order was issued by the Assistant Revenue Officer ordering higher taxes for the farmers and retailers. Contractors in nexus with corporation officials were exploiting the farmers and vendors to encourage corporate malls coming around in the area. Protesters demanded immediate removal of the officers and contractors involved in the exploitation of farmers and vendors. They also demanded the Deputy Commissioner that, within the radius of 5 Kms of the market, corporation authorities should not give permission for any corporate store.

Other demands include basic facilities in the market, drainage and rest house for the farmers.

Mittals name retail stores Bharti EasyDay

http://www.financialexpress.com/news/Mittals-name-retail-stores-Bharti-EasyDay/282409/

New Delhi, Mar 9 Bharti Retail, which has tied up with Wal-Mart, the world’s largest retailer, will name its convenience stores Bharti EasyDay. The first batch of stores will be launched on April 2. A total of five stores will be launched initially�€”four in Ludhiana and one in Chandigarh. The convenience stores will focus heavily on the food and beverages section. According to industry sources, the stores would be modelled on Reliance Fresh stores. The store size will vary from 1,300 square feet to 3,000 sq ft.

As is known, Wal-Mart has a technical agreement with Bharti for Its front-end retail stores. For the back-end cash and carry segment the two Companies have entered into a 50:50 joint venture. As earlier reported by FE, Wal-Mart Inc’s vice-chairman Mike Duke had clearly hinted that the front-end stores would not carry the Wal-Mart tag. This is because three-fourths of Wal-Mart’s international business earnings are under 52 local brands across the globe. “We want to be seen as local retailers serving the needs of the local people in an area,” Duke had said. However, Rajan Bharti Mittal, managing director, Bharti Enterprises, had earlier said the final rollout plans of the retail and cash and carry stores would be made in April, and brand names for the retail and cash and carry stores would be announced then. According to industry sources, the forced closure of Reliance Retail stores in Uttar Pradesh might have prompted Bharti to rework its branding strategy, and drop the Wal-Mart name to avoid any negative brand perception.

The first cash and carry store operated by Wal-Mart will be rolled out by the year-end. Bharti-Wal-Mart is expected to open 10-15 cash and carry stores in seven years and employ about 5,000 people.

Reliance Retail in JV for optical stores

The JV hopes to roll out its stores by September and expects to have a large network of outlets

http://www.livemint.com/2008/03/03002658/Reliance-Retail-in-JV-for-opti.html

Reliance Retail Ltd has formed a 50:50 joint venture with Europe’s HAL Holding NV to open stand-alone optical stores throughout India, eyeing a business that is virtually controlled by the unorganized sector.

The joint venture proposes to seek permission from India’s Foreign Investment Promotional Board, which approves and regulates foreign investment in the country, to operate stores here. The stores are kosher under India’s fairly restrictive laws regulating foreign investment in the retail sector because the country allows 51% foreign ownership in single-brand retail. HAL is the holding firm for a raft of leading European optical retailers who collectively run more than 2,500 outlets in two dozen countries and operates stores under Vision Express in the UK, Apollo Optik in Germany, Pearle Opticiens and various other brands in countries from Norway to Australia.

Joint venture hopes to roll out its stores by September and expects to have a “large network” of outlets across the nation. “The (brand) name is still being firmed up but Vision Express looks like the most prospective name as it’s very popular in the UK and other countries.

In Solidarity!

Dharmendra Kumar

Director

India FDI Watch

M-09871179084

Email:dkfordignity@yahoo.co.uk, dkfordignity@gmail.com

New York City Council passes bill to help Street and Small Vendors

khadyaniti — Tue, 04 Mar 2008 10:11:42 +0000

न्यू यौर्क शहर प्राधिकरण नें लघु व्यापारी व सड़क विक्रेताओं को फल व सब्ज़ी बेचने के लिए नए लाइसेंस जारी किये -

New York‘s City Council has passed a bill to issue 1,000 new permits for street vendors to sell fruits and vegetables in neighborhoods where fresh produce is scarce. The council voted 37-9 on Wednesday to issue the permits, which will be distributed among the five boroughs in neighborhoods where at least 15 percent of people surveyed said they had eaten no fruits or vegetables the previous 24 hours.

Department of Health Commissioner Thomas Frieden said the aim of the program will be to introduce fresh produce back into neighborhoods where diabetes and obesity rates have skyrocketed. In was the latest in a series of initiatives by the administration ” including a 2006 ban on trans fats and an ongoing fight to make chain restaurants post calorie counts on their menus ” to make New York City healthier.

BHARTI retail banner name unveiled

According to reports, Bharti Retail may call its retail outlets – Easy Day. The company is finalising its plans for the rollout and is expected to open its first store later this year. “Easy Day was among the names being considered, adding that the company has not taken a final decision on it,” the source added. Bharti Enterprises chairman Sunil Mittal said, “You can hear from us on the final concrete plans before April-end.”

French government attacks food retailers and manufacturers :

The French government has accused food manufacturers and retailers of taking advantage of global food prices to boost their profits and has threatened action against such market â€œabusesâ€ . Francois Fillon, prime minister, said the government would investigate why prices had risen faster in France than in neighbouring European countries. “There have clearly been abuses on the part of manufacturers and retailers who are profiting from the rises in commodity prices to increase their margins,” he said. Retailers rejected the accusation saying that they had already cut their margins to stem price rises.

TESCO accused of setting up offshore tax avoidance scheme :

According to reports in The Times, Tesco has set up an elaborate offshore tax avoidance scheme which could see the retailer avoid paying as much as GBP1 billion (USD2 billion) of tax on profits from the sale and leaseback of its UK properties to external investors through the use of a number of companies in the Cayman Islands. The story cited a Tesco spokesman as saying the allegations were “wrong… Far from avoiding tax, Tesco is a top ten UK taxpayer, contributing more than GBP1 billion (USD2 billion) to the Exchequer last year. The profits from Tesco’s share in these offshore property partnerships are included in full in Tesco’s UK tax returns and the details of the agreements have been provided to Her Majestys Revenue & Customs department.”

Organised Retail sector seeks industry status in this budget

FICCI had prepared a charter of demands for the US$ 12 billion “organised retail sector”, which is currently growing at 30-35% per annum.

Here is a list of major demands :

Â· The sector should be granted industry status.

Â· Uniform tax structure should be implemented. Gradual shift from the various state taxes to uniform tax would result in ease in sourcing goods efficiently and in turn aid the growth of the retail sector. The introduction of VAT in all states would result into the scrapping of differential sales tax prevailing in different states on the same product.

Â· Allow retailers to adjust the service tax on all inputs (rents and telephone) against the sales tax they collect from customers. The retailers who pay the state VAT do not have any output service tax against which they can set off service tax paid by them.

Â· Eliminate multiple licenses and clearances. Retailers need to obtain licenses and permits such as basic trading licenses, product specific licenses, pollution clearances etc for every retail outlet (even its a chain store). This only delays the opening of stores and increases cost.

Â· FDI limit should be further liberalised, which will ensure development of robust cold chain system, bets retailing practices and wide range of goods and services at competitive prices. It will also bring along with it increased focus on farmer education and training resulting into better crop/ yield management practices. 100% FDI in multi brand retailing must be allowed in certain areas such as electronics, automobiles, sports goods etc.

In Solidarity!

Dharmendra Kumar

Director

India FDI Watch

M-09871179084

Email:dkfordignity@yahoo.co.uk, dkfordignity@gmail.com

Rajasthan – New Tax on Corporates selling Fruits and Vegetables

khadyaniti — Tue, 04 Mar 2008 10:04:05 +0000

Dear Friends,

Small traders and hawkers won another battle. This time in Rajasthan. In its fifth budget, Rajasthan’s BJP government has proposed several ‘small trader’ friendly proposals – including a four percent tax on fruits and vegetables sold by corporate-run food stores like Reliance Fresh and Spencers. The levy is aimed at protecting street vendors. Prabhulal Saini, Agriculture Minister, Rajasthan said, “Small vendors and traders cannot compete with big retailers. So to bridge this gap and encourage the small traders, we have made a proposal to levy 4% tax. The small vendor should be able to sell vegetables without paying tax, get concessions & earn his livelihood.

In another development, European Union (EU) calls for new supermarkets inquiry. The European Union assembly has this week called for an investigation into the practices of the larger grocery chains across the continent. The assembly said that the EU’s competition body, the European Commission, should intervene to protect consumer choice and the environment.

Reliance is close to signing an agreement with Polo Ralph Lauren, the US-based design and distribution house, known for its range of high-end casual and semi-formal clothings as well as accessories and fragrances under internationally famous luxury labels like Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren, Black Label, Blue Label, Lauren by Ralph Lauren, Chaps and Club Monaco, to bring these premium products in India. However, it is noteworthy that only last week, following opposition by the Pacific Heights Neighborhood Association and the Fillmore Merchants Association, the city Planning Commission of San Francisco voted 6-1 to deny Ralph Lauren permission to open a boutique on Fillmore Street. People are battling against Ralph Lauren in San Francisco’s neighborhoods, and Pacific Heights is the front line. Ralph Lauren had signed a lease for 3,500 square feet at 2040 Fillmore St., the former site of Smith & Hawken, another chain store. The New York-based fashion retailer has long wanted to open a shop on Fillmore Street, where upscale national brands like Marc Jacobs, Simon Pearce and Jonathan Adler have rung up success and turned the neighborhood street into a shopping destination where one-off boutiques mingle with national players. While the Planning Department had recommended the commission approve a conditional use permit for Ralph Lauren, the Fillmore Street Merchants Association has decided to oppose all future chain retail.

Subhiksha, the discount retail chain of India, moves to legal measures to get drugs as drug companies’ are refusing to sell medicines directly to corporate retailers for fear of a boycott by their current retailers and wholesalers. The large drug retailing (5.5 lakh chemists across India) and wholesale industry is extremely well organised and is able to resist corporate hijack through the All India Organisation of Chemists and Druggists.

In Solidarity!

Dharmendra Kumar

Director

India FDI Watch

M-09871179084

Email:dkfordignity@yahoo.co.uk, dkfordignity@gmail.com

Kerala Trade Shuts down – 150,000 traders protest on HallaBol Day

khadyaniti — Tue, 04 Mar 2008 10:00:44 +0000

Highlights of the Halla Bol Protest

Corp. Quit Retail !! Wal-Mart Quit India!

Total Shut Down and Mammoth Rally of 150,000 Traders in Kerala on Halla Bol

Feb 23, 2008: Traders in Kerala today downed shutters as part of the nation-wide Halla Bol protest against the entry of retail giants into the retail trade. Reports from various parts of the state said the shut down was total. The Kerala Vyapari Vyvasayi Ekopana Samithi (KVVES) and the Kerala State Vyapari Vyvasayi Samithi (KSVVS) had together called for the strike demanding that the Government enact a law to prevent the entry of retail giants. The shut down had support of both the ruling Left Democratic Front (LDF) and the opposition United Democratic Front (UDF) in the state.

More than 150,000 traders marched in Thrissur held a mammoth rally. The speaker of the Kerala Legislative Assembly inaugurated the rally. Many members of parliament and members of Legislative Assemblies were present in the historical rally. Sri Shyam Bihari Mishra, President, Bhartiya Udyog Vyapar Mandal was chief speaker. After the meeting, all the 150,000 people gathered in the meeting lighted candles and pledged to resist the corporate hijack of retail.

Protest marches were also taken out by the KSVVS in different parts of the state. In Thiruvananthapuram, the KSVVS marched to the secretariat. The traders demanded a legislation during the present Assembly session itself. “Now we have thought of approaching the Union Government since the state administration has not heeded our request. Why should corporate entities enter into our retail-trading sector that we have been efficiently managing? Until our demands not to let such big players snatch our livelihood are met, we will carry on our crusade against the entry of Reliance and others,” said Panangottukonam Vijayan, Secretary, Kerala State Vyapari Vyvasai Samithi. The protesters walked to the government secretariat holding banners and shouting slogans against the entry of big retail giants.

The policy of the state government is to see that these retail giants are kept out of the state, Communist Party of India – Marxist (CPI-M) state secretary Pinnarayi Vijayan said at a mammoth gathering of traders in front of Raj Bhavan, the official residence of the Kerala Governor. “The Left is of the firm view that not a single such unit – national or international – be allowed entry into Kerala,” he said. “We at the Left Democratic Front meeting have decided that the local self-governments should not give sanction to such units.”

Only a few days back, Deputy Mayor of Kochi C.K. Mani Shankar had announced opening of retail outlet of the Reliance fresh. But today, Shankar was in the forefront of a protest march in Kochi.

Reliance, Subhiksha, More were locked and ten headed effigy of corp. burnt in Delhi

Delhi-23 Feb: On the heels of the visit of Michael Duke, Vice Chairman of Walmart, hundreds of small shopkeepers and hawkers staged militant protest at the doorsteps of Reliance Fresh, Subhiksha and More in Shakarpur area of Delhi. The protesters forced corporations to down their shutters and locked them. A ten headed tall effigy was also burnt. Each head of the effigy was symbolizing corporations namely Wal-Mart, Tesco, Reliance Fresh, Big Bazaar, Subhiksha, More, Spencers, Big Apple, Metro and Carrefour.

Addressing the protesters, Vijay Prakash Jain, General Secretary, Bhartiya Udyog Vyapar Mandal said “The livelihood of retail traders are at stake. If big corporations like Wal-Mart and Reliance are allowed to enter into the retail trade, small traders and street vendors would be finished. We warn the govt. not to play with the livelihood of traders, manufacturers, hawkers and suppliers. We demand to enact strict law to ban all corporations in retail trade and formulate a National Policy for Retail Trade and Small Manufacturing Industries.” Mr. Jain announced that to strike back and make corporations realise that we will not let them ruin our livelihoods a national mass rally of hundreds of thousands of people will be organized in the Ram Lila ground of Delhi on 23^rd April this year.

Ashwani Jain, Convenor of the Halla Bol protest stated “There are 40 million people depending on the retail sector. There are no employment avenues available for our youths and crores of families survive on the retail trade. Those who are saying that new jobs will be created by big corporations in retail need to realize that thousands more will be lost. Mr. Jain further said, “To justify themselves corporations are creating myths. They are creating the myth that they will sell cheap and fresh. But, consumers will have to pay for the high input of corporate retail such as real estate, air conditioning, educated salesmen and women, wasteful consumption of electricity and many more. In the long run, consumers will be the ultimate looser, as once corporate retail drive out their competitors and their monopoly is established they will buy low and sell at high price.

Dharmendra Kumar, Director of India FDI Watch and Convenor of National Movement for Retail Democracy said, “We have gathered here to tell the govt. that traders are ready to come on the streets if monopoly of a few corporations is favoured in the retail sector. The infamous retail giant of the world Wal-Mart has entered from the back door using Bharti-Airtel as its fig leaf circumventing the wholesale cash & Carry permission. This is a gross transgression of the intention behind Wholesale Cash and Carry Permission. Bharti will only be a thin cover for Wal-Mart’s profit making proclivities. Bharti will only function as a fixed margin operator. The warning bells are dire for our small manufacturers, suppliers, shopkeepers and street vendors.”

Hakim Singh Rawat, President, Delhi Hawkers welfare Association said, “Corporate retail intent to hijack the whole supply chain from ‘Farm to Folk’ and establish monopoly by becoming producer, wholesaler, distributor and retailer and targets to dictate the market to fulfill their greed. The hawker sells much fresher than any of these shops. Long distance supply chain and refrigeration means stale fruits and vegetables.

Mr. Prem Arora, President, Kirana Committee Delhi, Mr. Ajay Arora, President, Federation of Traders Associations of Delhi, Shafik Ahmad, General Secretary, Delhi Hawkers Union, Mr. Jindal Singh, President, East Delhi Hawkers Union also addressed the protesters.

Motor Cycle/car rally of Traders, Mathadi Workers, and Hawkers Closed Down Corporate Stores in Navi Mumbai

In a spectacular road show one of the first in the history of navi Mumbai one hundred motor bikes and 25 cars took to the streets and demonsrated outside various outlets of corporates. Starting from the CBD Belapur outlet of RELIANCE Fresh and followed by the CENTRE-ONE Mall, MORE, FOODLAND and a mini Rasta Roko otside the D-Mart outlet, nearly all the outlets had closed their shutters in order to avoid any damage to their stores.

The traders, workers and hawkers were demanding the protection of APMC markets, against entry of multinational and national corporations into the retail trade. The Halla Bol programme was attended by hundreds of retail and wholesale traders, Chemists, mathadi workers and hawkers. The rally was flagged off from the Mathadi Bhavan, APMC Market, navi Mumbai by senior leader of the Traders Shri Chandrakant Sanghavi and Shri Popatrao Dhonde President of the Mathadi workers union.

The Traders and mathadi workers took out a disciplined and peaceful Motor Cycle/car rally from Mathadi Bhavan , APMC market, Navi Mumbai to Khoparkairne, the rally started at 11.30 am and travel along the route covering CBD- Belapur-Seawood-Centreone- Arenjia Circl-Shivaji Maharaj Chowk- Khoparkairne and ended at 2pm at the Dana Bunder APMC Market .

The Garherings were addressed by leaders of the Traders Shri Mohan Gurnani, Shri Sharad Maru, Shri Ashok Baria, Shri Nilesh Vera and Shri Pramod Joshi. Shri Narendra Patil from the Mathadi Workers Union and Shri Prafula Mhatre and Shri Rambabu Gupta spoke on behalf of the hawkersand Shri Gawand from the cooperative sector.

Freedom Fighter led the Halla Bol Protest in Bangalore

Bangalore 23^rd Feb 08: Street hawkers, retailers and other people joined at Yashawanthpur railway station to protest against corporate retails as a part of national programme of Halla bol. Shouted slogans against the fresh malls. Freedom fighter Mr. Doraiswamy, addressed the gathering and during his speech, said that, already many corporate retail companies have arrived to Bangalore and have started the business but the government is not taking any action to support the local street hawkers, retailers. He requested the mass to continue the struggle to curb the corporate retails and also raised question against police system (because police has threatened the organizers to post pone or cancel the programme and not ready to give the permission for the rally because of Lorry strike. But organizers took firm decision to continue the programme and have done it. Prior to the rally on 22^nd of Feb 2008, 3 volunteers along with auto taken to the police station while canvassing the programme. They were arrested and criminal cases under KPA 92(I) were framed against them.) Mr. Doraiswamy further said, “police should give the support and security for the common people. Most of the police force of country belongs to agriculturist’s family. These companies through contract farming also cheat our farmers. I am here, let the police arrest me first, I am heading this demonstration, let the police arrest. He told that, these are always happens why should go to police and ask their permission. There is no need to ask the permission, we are the people who are protecting democracy and also electing the people to serve the people.

Ex corporator and opposition leader of Bangalore city corporation Mr.D.M. Nanjundappa, one of the guests addressed the gathering and told he will be with the hawkers and retailers of the area whenever needed and suggested the gathering not to bother about police, crores of small traders, retailers and hawkers are depending on this trade for survival. It is our right to protest and give warning to the companies that are demolishing the livelihoods.

During his speech Mr. A.K.Himakar told, if we believe in democracy it is our right to save our livelihood, we are not living in dictators country, irony is that, our people like hawkers, street vendors, retailers are struggling to lead the life where as these corporates are enjoying all the benefits of the government. Whole system of this country is supporting the corporates, what is the alternative left for the people? Government should seriously think on this issue otherwise in near future our hawkers; retailers and traders including farmers are going to hit the corporate stores like Uttar Pradesh.

Secretary of ASTRA K, Mr. K.C. Venkatesh also addressed the meeting and said, “Our food security, livelihood, our agriculture is facing serious problems because of the entry of large multinationals in retail and in agriculture if the process continue like this, we don’t know what will happened to our people. We are raising our voices to protect ourselves, our livelihoods are under threat. We are not asking any mercy or any favor from the government. It is our right to protest and we are demanding for national policy on retail.”

President of ASTRA K, Mr. Abdul Hammed addressed the gathering and told, if not today, tomorrow we are going to hit the corporate retails particularly reliance. We made a plan to go in a protest march but the police who should protect us are protecting the companies. Enough is enough in nearby days don’t expect us to follow the rules and regulation and law we are going to break the law let police arrest us. At least we will get food in jail. Retailers, hawkers and traders are under serious crises, does not know what to do, but as a trader I am ready for violence also if our voice is not heard.

President of Dalit Mahasabha Karnataka Siddaramaiah, Mr. S. Babu of India FDI Watch, Mr. Shiva Prasad of SUCI, trader leader Mr. Ramu from Nelamangala and local trader leaders also addressed the gathering.

Hawkers staged two rallies in Kolkata

Under the banner of National Hawkers Federation, hawkers of Kolkata staged two rallies in the Kolkata city. Mr. Shaktiman Ghosh, General Secretary, NHF led the rallies.

Similar protests were also held in different cities across India including Allahabad, Kanpur, Hyderabad, Chennai, Nagpur, Bhuvneshwar.

23 Feb – Kerala – Halla-Bol against corporate retailers

khadyaniti — Mon, 11 Feb 2008 12:40:22 +0000

Dear Friends,

India FDI Watch along with its partner organizations calls for Halla Bol on 23rd February 2008 in all the major cities of India taking demonstrations to the doorstep of corporate stores. Militant demonstrations will be organized before the corporate stores as part of the action. In Kerala, Kerala Vyapari Vyavasayi Ekopana Samiti will organize a Halla Bol rally in Trichur on 23rd Feb. Lakhs of small shopkeepers are expected to join the rally to raise their voice against corporate retail.

The political resolution draft for XIX Party Congress of CPM says, “The Party firmly opposes FDI in retail trade as it will seriously affect the livelihood of millions of shopkeepers and small traders. The entry of big Indian corporates into retail trade has a similar effect. At present there is no law to restrict the entry of corporate sector. Taking advantage of this, companies like Reliance have entered retail trade in a big way. The CPI(M) has set out a policy document for licensing and regulating the entry of corporates in retail trade. Till the Central Government puts in place such a policy, the Left led governments should take steps to regulate their entry.” Leaders of the party informed India FDI Watch that West Bengal Govt. has decided to regulate the entry of corporates in retail trade according to its policy draft and a committee will be formed having traders and hawkers to issue licenses to corporations to do retail.

National Statistical Office (NSO) of South Korea reported that, Mom-and-Pop shops are disappearing from neighborhoods, losing to cutthroat competition against giant retail outlets and convenience stores. Korean Mom-and-pop shops are seeing sales drop. It says, – Losing the competition, these small retailers are disappearing from the market. According to the Bank of Korea, the number of these shops dropped to 585,996 in 2005, from 739,059 in 1995. Another statistic showed that an average 6.3 mom-and-pop shops closed down everyday between 2001 and 2006. The number of corporate stores, meanwhile, surged to 8,855 from 1,557, increasing 20 percent on average every year during the last 10 years.

Below is the link of an informative short video, reflective of the unsustainable wasteful consumption culture being developed by corporate retailers: – www.storyofstuff.org

In Solidarity !
Dharmendra Kumar
Director
India FDI Watch
M-09871179084
Email:dkfordignity@yahoo.co.uk, dkfordignity@gmail.com

Drug wholesalers of Mumbai boycott Subhiksha :
http://www.planetretail.net/NewsFeed/NewNewsFeed.aspx
Drug wholesalers of Mumbai have boycotted Subhiksha. Subhiksha has sent legal notices to drug wholesalers in Mumbai for withholding supplies. Subhiksha Managing Director R Subramanian said, “wholesalers have boycotted us and have stopped supplying medicines.
Wal-Mart did lobby Blair over Asda

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/01/27/cnasda127.xml

Details of a secret Downing Street meeting held between Tony Blair, the then prime minister, and a senior Wal-Mart executive just months before the world’s biggest retailer pounced on Asda have finally been released, some nine years after the Â£7bn deal was struck. The Sunday Telegraph can reveal that Bob Martin, the then chief executive of Wal-Mart International, complained at the meeting to Tony Blair about Britain’s restrictive planning rules. The minutes of the meeting, released last month by the Cabinet Office after a direct order from the information watchdog, lay bare the lobbying strategy employed by Wal-Mart before it bought Asda in July 1999. The three-page document exposes the frantic lobbying of a country’s leaders that top executives carry out before making a major acquisition.

Mom-and-Pop Shops Disappear As Giant Retail Shops Pop Up :

http://www.koreatimes.co.kr/www/news/biz/2008/02/123_18403.html

Mom-and-pop shops are disappearing from neighborhoods, losing to cutthroat competition against giant retail outlets and convenience stores. According to the National Statistical Office (NSO), huge retail outlets like E-Mart posted sales growth of 9.8 percent last year. Mom-and-pop shops, meanwhile, are seeing sales drop. Small markets below 50 pyeong (165.3 square meters), excluding convenience stores, saw sales decrease of 2.9 percent. They were the only retailers to see sales fall. Losing the competition, these small retailers are disappearing from the market. According to the Bank of Korea, the number of these shops dropped to 585,996 in 2005, from 739,059 in 1995. Another statistic showed that an average 6.3 mom-and-pop shops closed down everyday between 2001 and 2006. The number of convenience stores, meanwhile, surged to 8,855 from 1,557, increasing 20 percent on average every year during the last 10 years. Retail outlets also explosively surged to 316 from mere 25 a decade ago, growing 28.9 percent on average each year.

Retail policy stuck over Rs 16 lakh bill :
http://sify.com/finance/fullstory.php?id=14596372
The Centre’s proposed retail policy seems to be stuck over, believe it or not, an uncleared bill of Rs 16 lakh. ICRIER, it seems, will not submit the report till this bill is cleared by the government. The government’s objective was to draw up a comprehensive retail policy from the findings of the ICRIER study.

WORLD SOCIAL FORUM: Mumbai Marches on Against Globalisation :
http://www.ipsnews.net/news.asp?idnews=40953
MUMBAI, Jan 27 (IPS) – There was grim determination on the faces of the 500-strong crowd that marched through the streets of this western port city for the World Social Forumâ€™s Global Day of Action on Saturday.
Defiantly, they carried banners that read â€™Another World is Possible”. The slogan — familiar enough in this city which hosted the WSF in 2004 — has a special ring to it because memories linger of a year-long strike in 1982, by some 250,000 textile mill workers, which failed.
“India’s retail sector is facing the onslaught of national and multinational corporations which will lead to the destruction of livelihoods of over 40 million people in the country,” said V. Shetty, lawyer and coordinator of India FDI Watch, an organisation spearheading a national campaign against foreign direct investment (FDI) in the retail sector, and the Vyapar Rozgar Suraksha Samiti (Committee for Protection of Livelihoods and Retailers), a coalition of small traders, hawkers and workers.
“Multinational chains have started selling vegetables at predatory prices, threatening the livelihoods of hundreds of thousands of hawkers who make a subsistence income on this work. And Indian companies like Reliance, Godrej and the Birlas open retail outlets and lure middle-class customers with prices that are below cost, running “Mom and Pop” stores out of business after which they can hike their prices sky high, said Shetty. ”The ground realities are in complete contrast to stated government policies of not allowing FDI in the retail trade. Walmart, the largest company of any kind in the world, is slated for entry into India in 2008, in a joint venture with an Indian company.”

Reliance Fresh on Orissa govt watch list :
http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Reliance_Fresh_on_Orissa_govt_Watch_list/articleshow/2738944.cms
NEW DELHI: Reliance Fresh could be headed for an Uttar Pradesh-like situation in Orissa with the state government learnt to have assured an India FDI Watch delegation that it will re-scrutinise the permission given to Reliance Fresh for opening outlets in Orissa. â€œWe have been assured by a senior state government official that all possible steps would be taken for the rehabilitation of roadside vendors. The permission given to Reliance Fresh for opening outlets would also be scrutinised,â€ India FDI Watch director Dharmendra Kumar told ET.
India FDI Watch is a national association of small traders that is opposing big and foreign retail players. The Orissa government has, meanwhile, also offered a helping hand to the roadside vendors, notifying specific zones for them across the state.
To start with, 15 such vending zones will be opened in the Cuttack district of Orissa, aimed at rehabilitating roadside vendors, whose business has reportedly suffered major losses due to entry of organised retail players. Reliance Fresh has had a difficult time operating in the state. Even its launch in September last year was marred by violent protests from local traders and the company had to close down its Bhubaneshwar store for a couple of hours on the day of the launch itself.
The state government had also refused to extend any preferential treatment or additional security to the corporate giant.
Farmers urged to come under one umbrella :
http://www.financialexpress.com/news/Farmers-urged-to-come-under-one-umbrella/267068/0
The former Union agriculture minister and the CPI leader, Chaturanan Mishra urged the farmers’ organizations affiliated to different political parties in country to come under one platform to fight for the just cause. The conference passed a resolution demanding hike in the minimum support price (MSP) for paddy to at least Rs 1000 per quintal and that of paddy and that of wheat to at least Rs 1600 per quintal. It criticised the wheat imports done by the government at higher prices in 2006 and 2007, when ample wheat was available in the country. The government should have purchased wheat from farmers by raising the MSP, instead of buying wheat in the global market at higher prices, it said Expressing concerns over the government’s apathy towards the increasing incidences of suicides committed by farmers, the Bharatiya Krishak Samaj president, Krishan Bir Chaudhary demanded reversal of the anti-farmer policies. The resolution criticized the government for opening the doors to the corporate houses and multinationals in Indian agriculture and in the retail chains as this would lead to greater exploitation of farmers. The resolution also called for a ban on futures trading in agro commodities. The resolution also demanded a ban on genetically modified crops. The farmers have suffered huge losses on account of Bt cotton cultivation.

Mom, Pop stores impacted by big retail: ICRIER :
http://www.expressindia.com/latest-news/Mom–Pop-stores-impacted-by-big-retail–ICRIER/266673/

The neighbourhood kirana stores will initially feel the heat with the growth of big super markets and malls, Rajiv Kumar, Director of ICRIER, which has been entrusted with a government study on the impact of organised retail on Mom & Pop stores, said. “Small retailers will be initially impacted by the entry of large scale retail houses. However, the impact is likely to be diluted over a period of time”, Kumar said.

Draft Political Resolution For XIX Party Congress :
http://pd.cpim.org/2008/0127_pd/01272008_draft.htm

The Party firmly opposes FDI in retail trade as it will seriously affect the livelihood of millions of shopkeepers and small traders. The entry of big Indian corporates into retail trade has a similar effect. At present there is no law to restrict the entry of corporate sector. Taking advantage of this, companies like Reliance have entered retail trade in a big way. The CPI(M) has set out a policy document for licensing and regulating the entry of corporates in retail trade. Till the Central Government puts in place such a policy, the Left – led governments should take steps to regulate their entry.

Reliance to unveil new speciality format; plans to set up 100 AutoZone stores :
Having already launched its first ˜ AutoZone ” in the recently opened Reliance Mart (Hypermarket) at Jamnagar (Gujarat) on the 30th January, Reliance Retail, is ready to rollout a super speciality retail chain of auto stores across the country. Apart from selling auto spares and repairing two wheelers and four wheelers, AutoZone stores will also retail two wheelers and pre-used branded cars.Reliance plans to set up about 100 such AutoZone stores across the country, within a year.

Landmark group to undetake aggressive retail expansion; plans $500 mn. investment in 3 years :
indiaretailbiz.com

Landmark Group, owned by Dubai-based group of NRIs, which currently operates 19 stores under three retail chains across 9 cities in India, according to a Business Standard report, is planning to invest another $500 million in the next three years (by 2010) in the country. The group, in the past 10 years, since 1998, has invested $100 million in the country. Landmark group operates over 650 stores across West Asia, India, China and Spain. Landmark’s current operations comprise 13 Lifestyle stores, 5 Home Centre stores and a Babyshop store operating out of Ahmedabad, Bangalore, Chennai, New Delhi, Gurgaon, Hyderabad, Mumbai, Vashi and Pune.

Reliance could soon foray into travel retail business :
To begin with, before venturing into full fledged travel business, the company would first like to leverage on the domestic and international travel business worth about Rs. 100 crore being generated by the group and on promotional schemes that offer travel related incentives like holidays to its retail customers. The company, incidentally, has already incorporated a subsidiary called Reliance Retail Travel & Forex Services Ltd. The new company appears to have tied up with Indian, the national airline, for up to 30% discount on airfares.

Kamal Nath defends retail FDI policy :
http://www.thehindubusinessline.com/2008/02/09/stories/2008020952401000.htm

Bangalore, Feb. 8 The Union Commerce Minister, Mr Kamal Nath, on Friday said that the government will continue to reduce customs duty but it will also ensure that every fiscal policy decision it takes stimulates economic growth. But he defended Indiaâ€™s policy on retail FDI stating that there was a need to protect smaller retail shops and the conditions in the country were different from other countries. “We need to see that the policy does not dislocate small retailers,” he told delegates at the India Sourcing Summit.

Birla Retail in talks with farmers’ co-ops for direct procurement :
http://www.financialexpress.com/news/Birla-Retail-in-talks-with-farmers—co-ops-for-direct-procurement/269189/

Bangalore, Feb 4 Even as India’s largest business conglomerate Reliance Industries is facing trouble over its retail venture over procurement of farm products, its competitor Aditya Birla Retail Ltd, the retail arm of the $23-billion Aditya Birla Group, is trying to overcome the hurdles by tying up with farmers’ cooperative societies. The company, that has set a target of establishing 1,000-1,500 superMarkets and has earmarked Rs 8,000-9,000 crore in the next five years, is planning to tie-up with cooperatives to procure fresh farm products, vegetables and fruits.

Spencer’s first hypermarket in Kolkata launched; plans to invest Rs. 2,500 Cr. in expansion :
Spencer’s, among the oldest names in retail sector, threw open the doors of its Hypermarket store on in Kolkata on the 1st Feruary, 2008. The store was opened by the group patriarch R P Goenka. Besides Kolkata, Spencer’s also operates hypermarket format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad and Durgapur. The group is planning to scale up its operations to 52 cities in the coming months.

2007 Year End – Gathering Storm of Protests and Large scale Social Unrest in Incredible India

khadyaniti — Sat, 29 Dec 2007 05:26:59 +0000

2007 Year End sees gathering Storm of Political Protests and Widespread Social Unrest in Incredible India -
The past few days witnessed interesting reports coming from ICRIER on their – “ongoing survey” of the likely impact of the corporate retail on the peoples livelihood. People protest continues.
1. In Kozhikode, Kerala Vyapari Vyavasayi Ekopana Samithi protested before corporate retail outlets. Thousands of mathadi workers, Traders,
2. Hawkers under the banner of Vyapaar, Rozgaar Suraksha Kriti Samiti blocked the main traffic intersection of Navi Mumbai paralysing the traffic in this satellite town of Mumbai on 18 December, 2007.
3. Today (29 December, 2007) Traders in Tamil Nadu would stage a day-long hunger strike in Chennai to protest the entry of MNCs and domestic industrial groups into the retail business under the banner of recently formed State Retail Traders Protection Committee.
4. Save Agriculture, Retail and Livelihood Campaign Committee of Karnataka is going to organize a public meeting on National Policy on Retail on 1st January, 2008 in Bangalore. Rs 3,50,000-crore retail market grew 7-8 per cent during the year, with the organised sector recording a 25 per cent growth.
5. Reliance announces massive plans of expansion in sectors other than fruits and vegetables; preparing to foray in Rs 2.5 lakh crore dairy business in a big way; acquiring aeroplanes to ferry farm produce.
6. Birla, Tata, Bharti and others gearing up to grab a chunk of the mammoth retail pie. India FDI Watch continues to get press (print as well as electronic).

With Best Wishes!

Dharmendra Kumar

Director – India FDI Watch
More Stories :
1. Political parties united in seeking cover for small traders – The BJP leader said he is against FDI in organized retail, since it will not bring in know-how, expertise or new technology
http://www.livemint.com/2007/12/13000503/Political-parties-united-in-se.html
2. Big retailers say they offer better deals; opponents raise national policy pitch -
Large cos say stopping them from entering retail will prevent farmers, consumers from getting best prices :
http://www.livemint.com/2007/12/12235629/Big-retailers-say-they-offer-b.html
3. The year of the jholawallah – YEAR-END SPECIAL – Aditi Phadnis / New Delhi December 28, 2007
http://www.business-standard.com/common/storypage.php?leftnm=lmnu4&subLeft=2&autono=308927&tab=r
4. For 750 Million… Humans – The unilateral opening up of retail holds few pluses for the country
Krishan Bir Chaudhary
http://www.outlookindia.com/full.asp?fodname=20071231&fname=Cover+Story+(F)&sid=4
5. Protest against Reliance Retail outlets -
http://www.insidekerala.com/n/article/MainNews/11189/
Kozhikode: The city on Saturday witnessed fresh round of agitations against the retail outlets owned by the big companies. This time it was against the Reliance Fresh Outlets at Meenchanda and Chakkorathkulam. The activists of the Kerala Vyapari Vyavasayi Ekopana Samithi, DYFI and AIYF took out march to the shop. Police prevented the agitators from entering the shops. Traders closed their shops in various parts of the city protesting against the permission given to companies to open retail outlets
6. Reliance Retail kicks off massive recast – Sindhu Bhattacharya
http://sify.com/finance/fullstory.php?id=14571710
7. Tatas to up retail presence in south -
http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=31554
8. Reliance to foray in dairy biz -
http://www.moneycontrol.com/india/news/business/reliance-to-foraydairy-biz/19/37/318994
9. Pharma retailers join hands to take on big chains -
http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Pharma_retailers_join_hands_to_take_on_big_chains/articleshow/2633250.cms
10. Reliance Retail to acquire 50-70 aeroplanes to ferry farm produce -
http://www.indiaretailbiz.com/blog/2007/12/27/reliance-retail-to-acquire-50-70-aeroplanes-to-ferry-farm-produce/
11. Food processing minister expresses solidarity with organised sector -
http://www.indiaretailing.com/news.asp?id=1451&topic=1
12 . Organised retail’s biggest obstacle: Unorganised supply chains -
http://www.indianexpress.com/story/249286.html
13. New-borns – The years new-borns were Reliance, the Tatas and the A V Birla Group which made a foray into the business announcing their huge presence across the country, little realising that with grand plans come the challenges and the turmoil.
Political issues wreaked havoc on food retail expansion plans in the two troubled States, though companies are denying that they have slowed down their growth footprint. “We may not expand in these two States, but we stick to our target of 2,000 stores by 2010,” Bijou Kurien, President and Chief Executive, Lifestyle, Reliance Retail, told presspersons in Bangalore recently.