CPI(M) demands stringent regulation on organised sector retail

New Delhi, May 30 (UNI) Expressing concern over the foreign retail chains and domestic corporate houses taking advantage of loopholes in the policy to enter the country's market, the CPI(M) today urged the government to come up with stringent regulations on the organised sector to protect livelihood of over 40 million small shopkeepers and traders.

The Left Party, in a six-page proposal, sought cooperation from political parties and the government to frame a national policy to safeguard the interests of the farming community, in view of the retail chains doing direct business with farmers on fruit and vegetables.

The proposal, released by CPI(M) General Secretary Prakash Karat, details the need to regulate Organised Retail, framework for a national policy on Regulating Organised Retail, case for a Licensing System for Organised Retail, government's role in preventing Private Monoplies and safeguarding farmers' interests.

''These proposals are being made in the backdrop where private players are entering both in retail trade and agriculture in a big way,'' said the proposal released at a press conference at A K Gopalan Bhawan--the party headquarters.

The proposal, a follow up of the Central Committee decision in April, quoted KPMG survey report prepared by the FICCI that the organised retail, estimated at 6.4 billion dollars industry in 2006, was projected to reach 23 million dollars by 2010.

On the role expected from the Manmohan Singh government, Mr Karat said, ''Let the initative come from the government. We have done the homework.'' Mr Karat said the Left Parties had been opposing the proposed entry of FDI in retail for quite long. ''We first opposed the move during the NDA regime. Now, we are opposing it in the UPA government's rule.

The foreign retailers are taking advantage of loopholes in the policy, particularly, the decision to allow FDI in retail in single brand and wholesale trade business (also known as Cash-and-Carry) to enter into the Indian market.

Bharti Enterprises' alliance with Wal-mart was thus merely the first joint venture, which will enable global retailers to engage in large-scale retail, the Left leader added.

Mr Karat claimed that the CPI (M) always believed in framing a national policy on the subject and criticised those who he said, thought the party was favouring the Reliance Group.

He also made it clear that the policy would also be applicable to the Left Front-ruled governments in West Bengal, Kerala and Tripura.

In response to a question, Mr Karat hoped that the government would consider the proposals seriously and take immediate steps to frame a national policy in this regard.

Asked how the foreign retail chains could enter the retail market in big cities and towns, the CPI(M) leader said as of now there was no law to regulate it. ''That is why we have prepared the proposal in the interests of the small traders and the farming community.'' On another question, Mr Karat elaborated that the proposal had been drafted in consultations with the small shopkeepers, traders and farmers at the local, district and state levels.

UNI