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| Industry against retail regulatory authority |
| Seema Sindhu & Atanu Kumar Das / New Delhi Jul 10, 2010, 00:54 IST |
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There aren't many takers in industry for the Centre’s proposal to set up a retail regulatory authority.
In a meeting called by the Ministry of Consumer Affairs and Food on Thursday, industry players made their opposition to the proposal clear. They said the government should instead set up a body to promote retail trading. Industry representatives, who attended the meeting convened by Consumer Affairs Secretary Rajiv Agarwal, supported the government’s proposal to set up a national commission to study the problems of the retail sector.
Apart from representatives from Icrier, Ficci and CII and Confederation of All India Traders, among others, the meeting was attended by an under secretary-level from the Department Of Industrial Policy and Promotion (DIPP) that released a discussion paper on opening up multi-brand retail to foreign investors.
A person present at the meeting said a major issue on the agenda was discussion on ways to reduce the difference between farm-gate and consumer prices. The ministry has the industry's views on this. Economists believe opening foreign direct investment (FDI) in multi-brand retail is likely to help lower the prices of food products by reducing wastage and direct sourcing from farmers.
The consumer affairs ministry sought industry and DIPP views on what are the issues in traditional retail and what can be done to address these issues. It said the govt would have a nationwide discussion on this soon.
Covertly, the discussion relates to FDI in multi-brand retail. The govt is keen to allow foreign players in food grain retail also, as the leakage in PDS has become a pain in its neck.
The ministry asked attendees’ views on how to modernise the existing (traditional) retailers and bring them under the organised bracket so that leakages in PDS can be reduced.
The industry said the suggested retail promotional board should be formed, which can train small retailers and make them understand the benefits of modern retail and also make them technology-friendly and thus transparent.
“It is very positive that the government has started discussion of opening up FDI in multi-brand retail. One of the important aspects is to make the small retail players understand the importance of modern retail and yesterday’s discussion was a step in that direction,” said Vineet Jain, business manager, north zone, Big Bazaar who was also present in the meeting.
Besides, the ministry also sought views on what should be there in the Model Retail Law.
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