Once foreign direct investment is allowed, it will bring about changes in labour laws too. Picture for representational purposeTraders in India conduct their business as per the Constitution. There are about 5 crore retail traders in the country, of which 14 lakh are in Kerala. Allowing foreign direct investment in this sector will destroy small retailers. Ever since P. Chidambaram, who was the finance minister in 2006, started this move, the Vyapari Vyavasayi Ekopana Samithi has been protesting against it. Leftist organisations too have joined the protest.
Indian multinationals too support foreign direct investment in retail trade. Big brands in India have opened many retail stores, even in Kerala. Their goal is to work with foreign companies when they arrive.
In reality, price rise became severe after big brands entered retail trade. For example, in 2006, rice cost 10-12 rupees. Today it is 35 rupees. The main reason for this is hoarding by giants who entered retail trade. They bought paddy fields in Andhra and stored the rice from there in warehouses taken on rent from the government. Years later, the rice stored in such climate-controlled warehouses was sold at a higher price. They were given the opportunity to store rice by amending the Essential Commodities Act, which prevented hoarding and black market.
Big brands have long-term goals. First, they will sell at a lower price. Then small retailers, who will not be able to cope with this, will leave the business. With this, the big players will control the entire retail trade. In Kerala, 69 lakh people work in the retail trade. Including those who do related work, the number of people who earn a living from this sector is about 1.5 crore.
Once foreign direct investment is allowed, it will bring about changes in labour laws too. Companies will be able to bring workers from any part of the world. It will create a situation where there will be bargaining for job opportunities. People from countries such as the Philippines and Sri Lanka will come here as workers.
The move to wipe out retail traders has been going on for years. Tax relief to online trading and removal of traders in the name of road development are part of this agenda. Most of the hartals that take place today are sponsored by foreign multinationals.
Earlier, the punishment for food adulteration was a jail term. However, once giant companies entered this field, the jail term was replaced with a fine of 1 lakh rupees, which is a small sum for big players and an unbearable amount for small retailers. The Samithi has been able to create awareness and wage strong protests in Kerala against foreign direct investment in retail trade. The current effort is to organise this countrywide. It is extremely sad that, forgetting everything, the BJP, which fought the UPA government that invited foreign multinationals into retail trade when it was in the opposition, has taken the UPA’s stand when it came to power. The BJP’s this move proves that, whichever the party, they all protect the interests of multinationals.
Those who start retail business should know the trade, and must find the money and place for it. There are special courses abroad for all this. Here, there is no practical training or curriculum for it. In today’s condition, one has to cross 36 labour law hurdles and secure 25 licences to start a retail business. All moves against retailers should be opposed. In reality, if you want to harm someone, you need not send goons after him. Just advise him to start a shop. He will dig his own grave.
(The writer is the president of Kerala Vyapari Vyavasayi Ekopana Samithi)
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