Small traders oppose Tesco-Tata venture

These are the same people who opposed the government's move to allow FDI in multi-brand retail

Small traders, against the Union government’s decision to allow foreign direct investment (FDI) in multi-brand retail, want the Centre to strike down Tesco’s proposal to take a stake in Tata’s Trent hypermarkets. “It is a blow to small traders in the country because if multi-brand retailers are allowed, they will adopt predatory pricing and kill the trade. They will create monopoly at a certain point of time,” said Praveen Khandelwal, secretary general, Confederation of All India Traders (CAIT), a trade body representing 20,000 trade associations. Khandelwal said CAIT has called for a core committee meeting on December 28.

“Traders across the country will oppose any political party supporting multi-national retailers in the country,” he added. Mohan Gurnani, president of Federations of Associations of Maharashtra, said, “We have been trading for many years. We do not need any assistance from abroad to run our business. In fact, Tatas are capable of running their retail business alone. Why do they need partnership?”

However, big retail chains have welcomed the Tata-Tesco retail joint venture. Mohit Kampani, chief executive of Spencer’s Retail, said: “FDI in the sector is welcome. This sector needs equity investments and can’t rely on debt for long. Investments from foreign chains is a welcome step as food and grocery retail requires a long-term view of the business.”