CAIT to meet CMs to garner support against FDI in retail

Govt has put on hold its decision to allow 5% FDI in multi-brand retail

The Confederation of All India Traders (CAIT) today said they will be meeting Chief Ministers of different states and leaders of national and regional parties to garner support against FDI in multi-brand retail.

"We will oppose tooth and nail to any FDI in multi-retail brand. Earlier, we submitted memoranda to all the MPs of this country. Now, we have started meetings with the Chief Ministers and leaders of national and regional parties," CAIT Secretary General Praveen Khandelwal said here.

He said meetings with the CMs and various leaders across the political spectrum will go on till July 15.

"In the second phase, we will be submitting memoranda to all the MLAs of different states because if the FDI is allowed, it will be the legislators who will be the execution authority in the states," he said on the sidelines of a session on "FDI in Retail Trade of India Assumptions Versus Facts" organised by CAIT here.

Khandelwal claimed that FDI in multi-brand retail will wipe out competition and it will attain the shape of "monopolistic retail".

"To take the plea that states, if they want, will be free to oppose the FDI is merely an eyewash...Under WTO and GATT, conditions cannot be put which hamper the business of the MNCs".

On FDI as counter mechanism for post harvest losses, Khandelwal questioned, "despite 100 per cent FDI allowed to set up cold storage chains since past 15 years, till date not a single MNC has opened cold store...If the Government failed to set up infrastructure, will the MNCs do this job."

Earlier during the meet, trade leaders belonging to various trade bodies of retail businesses opposed FDI in multi-brand retail.

"FDI will rather create extreme imbalance in negotiating power between the handful of supermarkets and the farmers resulting in most of the gains from the trade are retained at the top.

"The monopolistic buying power of the large retailers would further weaken the marginal farmers position, resulting in lower share of value to them, dictating of the production techniques and output by the larger retailers and destruction of diversity in Indian agriculture," Satish Garg, General Secretary of CAIT, said.

The government has put on hold its decision to allow 5 per cent FDI in multi-brand retail due to opposition from its allies.