Kerala Govt. to bring law to regulate retail giants: Minister

Kochi, Sep 7 (UNI) Declaring the Kerala Government's intent to ban national and international giants in the retail sector, if the law permits it, State Food and Civil Supplies Minister C Divakaran today said the government will bring a law to control their functioning.

Addressing the valedictory session of a national seminar on 'Retailing Giants Entry: Effect on Indian Economy' here, Mr Divakaran said the Kerala Government had also urged the Centre to review its decision to allow big companies to operate in the retail sector.

''The Kerala Government is constrained to oppose the retail monopolies in a healthy way,'' he added.

Citing Uttar Pradesh Chief Minister Mayawati's decision to ban retail monopoly chains, Mr Divakaran said the Kerala Government would also like to do the same if the law allows it.

In the meanwhile, the state government will bring a law to control the retail giants.

The government had also decided to direct the local bodies not to issue fresh licences to open more stores of these companies, he said.

The government would also refurbish the outlets of the Kerala Civil Supplies Corporation to enable these to compete with the retail giants, he said.

Existing rules and regulations would be strictly enforced, he added.

Claiming that the livelihood of 40 million small retailers, including five million single product vendors, was at stake, Mr Divakaran wondered whether the Central Government was willing to take the responsibility of providing them employment and livelihood.

Observing that Kerala, which imports almost 85 per cent of its consumer products from other states, was particularly vulnerable, Mr Divakaran said the retail giants would begin to dictate the pricing and marketing policies once all other competition was eliminated.

Dismissing the retail companies' claims that they were giving better price to farmers and quality products to consumers at lower prices, Mr Divakaran said ''the only objective of monopolies is to make money and earn profits.'' Stating that these companies were ''very powerful'', Mr Divakaran accused them of even trying to ''purchase MPs and MLAs.'' Observing that UPA Chairperson Sonia Gandhi had asked Union Commerce Minister Kamal Nath to set up a committee to examine the impact of the entry of big companies on the retail sector, Mr Divakaran said that this was a ''burning issue and no one can close their eyes to it.'' Citing protests in Uttar Pradesh, Madhya Pradesh and some other states against big retail companies, Mr Divakaran said the Kerala Government did not want any law and order problems.

''But, in a civilised and democratic country such as India, the people's voice is supreme. It is even above the voice of the judiciary and the government. And the people are protesting against the Central Government's economic reforms and its decision to allow monopolies in the retail sector,'' he added.

UNI