New trade policy in the works

Retail trade will be relaxed from provision of stocking limits under Essential Commodities Act

The Maharashtra government has framed a trade policy to retain the state’s leadership position in the retail sector.

Development of retail clusters, relaxation of working-hour rules under the Shops and Establishment Act, inclusion of food and grocery retailing in the Essential Services and Maintenance Act to avoid disruption due to bandh and agitation are among the proposed changes..

Retail trade would be relaxed from the provision of stocking limits under the Essential Commodities Act and the players would be exempted from the Agriculture Produce Marketing Committee (APMC) regulations, so that farmers can sell their produce directly to the retailers. Retailers would not have to pay any cess to APMC.

The government plans to create retail entertainment zones. According to a draft policy, retail enterprises would be allowed to stay open every day of the year but with a rider that the employees should be granted compulsory weekly offs on a preferential basis. Retail enterprises in all goods and commodities would be allowed to function between 5 am and 11 pm. For logistics and supply purposes, these can operate between 11 pm and 5 am.

The government has sought comments and suggestions from stakeholder. A senior government official told Business Standard: “Retail enterprises will be exempted from maintaining physical records for attendance and salary and they will have an option for self-certification and filing of consolidated annual returns under 13 Acts administered by the state labour department.

The retail development will be allowed higher ground coverage, up to 70 per cent, subject to setback and fire safety regulations and floor space index (FSI) norms.  The floor-to-floor height will be raised to 5.5 meters and additional parking space will be allowed without FSI implication.”

Further, the official said up to 50 per cent additional FSI for development of retail and shopping centre would be admissible over the base FSI, subject to payment of full applicable premium according to the prevailing ready-reckoner rates. This would enhance viability and quality of development of retail centres.

The Federation of Retail Traders and welfare Association, which has around 150,000 shopkeepers in Mumbai and 200 area associations, said its was not roped in during the formulation of the draft policy.

The federation president, Viren Shah, alleged that the policy provided all benefits to big corporate houses and multi-chain stores and industry houses but has neglected small traders. Shah had in a recent communication appealed to the government to redraft the policy and address the concerns of small traders.