Traders oppose FDI in retail

Worried over the Foreign Direct Investment (FDI) in retail sector, various traders organizations of Jammu region have decided to support the ‘Bharat Bandh’ call, jointly given by Confederation of All India Traders and Bharat Udyog Vyapar Mandal, for December 1.

While criticizing the working pattern of Best Price Shop (a Bharti Walmart joint venture), the Associated Chamber of Traders Federation (ACTF) president Yashpaul Gupta said that these Multi National Companies (MNCs) were selling certain items at cheaper rates, but this would continue only for few days in the beginning to attract the general public.  Slowly and steadily they would change their policies, he said.

“The ramifications of the opening of shops by these MNCs in country will be visible only after few years. Once these companies are able to attain monopoly in wholesale and retail sector, they would start charging as per their whims. At that time the general masses would be left with no option but to purchase the items from these outlets at the prices fixed by these MNCs,” he warned.

He further said that in the beginning these MNCs outlets would sell the items, which are already available in the market but once the local market vanishes from the scene, these companies would sell the products from their own manufacturing units and those too at exorbitant rates.

“These MNCs have a very long chain and also have collaboration with several industries. These industries also produce all kinds of goods including grocery items, confectionary items, electrical appliances, textiles, eatables and after monopolizing the markets, they will give concession only on their own products,” he said.

He further said that there were around 5 Cr retail shopping outlets in entire country and around 20 Cr families were depending on these outlets. “After the approval of FDI in retail sector, the new outlets of MNCs in every city would result in the closure of those local outlets,” he said and added that the unemployment in entire country would increase manifold.

Other trader organization members, endorsing his statement, stated that there were negligible benefits of allowing FDI in retail but there were numerous drawbacks of the said policy. They announced their decision to support the ‘Bharat Bandh’ call for December 1 and also appealed the people of entire Jammu region to observe shutdown on that day.