No FDI in Multi-Brand Retail
Date:
28 May 2011
The
Polit Bureau strongly opposes any move to allow FDI in multi-brand retail trade
as suggested by the Inter-Ministerial Group on Inflation headed by the Chief
Economic Advisor.Having utterly failed to curb the relentless increase in
prices of essential commodities, the move is to utilize that very failure to
push for more concessions to multinational companies like Walmart. The specious
arguments put forward that entry of MNC retail giants like Walmart will enhance
efficiency of the supply chain and bring down the trading margins belie
international experience which shows that any State regulation of these giant
retailers are always rendered ineffective. In fact, MNCs will enjoy much
greater monopoly power over both farmers and consumers and will manipulate
prices to their benefit while at the same time, the livelihood of millions of
small unorganized retailers will be virtually wiped out.This is yet another
instance of pro-MNC neo-liberal framework which will badly affect the Indian
people. It is shocking that the Group of Ministers has refused to accept the
Supreme Court direction to strengthen the public distribution system and
distribute foodgrains to the people which is also one of the ways of
controlling market prices. It is to be noted that the Inter-Ministerial Group
has not suggested any meaningful step to curb food inflation, like enhancing
agricultural productivity or stepping up public investment in storage and
transportation. Options like strengthening the PDS and banning future trade in
essential commodities are also being ignored.The CPI(M) calls upon other
political parties and organisations to protest against this retrograde move
Polit Bureau strongly opposes any move to allow FDI in multi-brand retail trade
as suggested by the Inter-Ministerial Group on Inflation headed by the Chief
Economic Advisor.Having utterly failed to curb the relentless increase in
prices of essential commodities, the move is to utilize that very failure to
push for more concessions to multinational companies like Walmart. The specious
arguments put forward that entry of MNC retail giants like Walmart will enhance
efficiency of the supply chain and bring down the trading margins belie
international experience which shows that any State regulation of these giant
retailers are always rendered ineffective. In fact, MNCs will enjoy much
greater monopoly power over both farmers and consumers and will manipulate
prices to their benefit while at the same time, the livelihood of millions of
small unorganized retailers will be virtually wiped out.This is yet another
instance of pro-MNC neo-liberal framework which will badly affect the Indian
people. It is shocking that the Group of Ministers has refused to accept the
Supreme Court direction to strengthen the public distribution system and
distribute foodgrains to the people which is also one of the ways of
controlling market prices. It is to be noted that the Inter-Ministerial Group
has not suggested any meaningful step to curb food inflation, like enhancing
agricultural productivity or stepping up public investment in storage and
transportation. Options like strengthening the PDS and banning future trade in
essential commodities are also being ignored.The CPI(M) calls upon other
political parties and organisations to protest against this retrograde move
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