Kerala Government to examine Legal and Regulatory aspects of Food Retail Chains

[Nagarjuna]

French supermarket prices rise 5% in a year :

The French Economic Affairs Minister Christine Lagarde said yesterday
that prices in French supermarkets increased by about 5% between
February 2007 and February 2008.

Kerala to examine legal aspects for banning retail chains :

http://economictimes.indiatimes.com/Retailing/Kerala_to_examine_legal_aspects_for_banning_retail_chains/articleshow/2854960.cms

THIRUVANANTHAPURAM: The CPI(M) led LDF government on Tuesday said it
would examine all legal aspects of bringing forward an ordinance to
ban retail chains of national and multinational companies.

Replying to a calling attention on the difficulties faced by small
time traders after the arrival of multinational retail chains, Food
and Civil Supplies Minister C Divakaran told the assembly today that
the government welcomed the idea of banning retail chains of big
companies and would examine the legal aspect for the same.
He said the government had already sent to the Centre, a draft bill of
the State’s Essential Commodities Act, to control retail chains of big
companies and was waiting for its approval.

To face the challenge from these companies, the government would
strengthen and modernize the Public Distribution System and open more
Civil Supplies Corporation outlets. There were also plans to open hi-
tech super markets in towns, he said.
Congress MLA N Sakthan spoke of the problems faced by lakhs of small
traders and asked the government to make necessary amendments in the
Panchayati Raj Act to prevent the entry of retail chains of big
companies.

Protests in Kerala, govt allies say it’s endorsing organized retail :

Organized retail chains have faced violent campaigns against them in
the state, with a number of these protests led by constituents of the
ruling Left Democratic Front

http://www.livemint.com/2008/03/09230531/Protests-in-Kerala-govt-allie.html

Kochi: The Kerala government’s proposed 10% surcharge on the profits
of big retail chains, paraded as a hurdle to the entry of the giants,
has run into trouble, with members of its own ruling communist
alliance condemning the plan as —actually—an endorsement of organized
retail.

Kerala minister for food and civil supplies C. Divakaran said the
proposal will be opposed at all levels and claimed the “surcharge is
an incentive to retailers.”

Organized retail chains have faced violent campaigns against them in
the state, with a number of these protests led by constituents of the
ruling Left Democratic Front.

Reacting to the criticism, state finance minister Thomas Isaac said:
“There is nothing like legitimizing this. It (organized retail) is
there and we have decided to tax them. It is true that there has been
stiff opposition to their entry into the state.

But, the law does not prevent them from setting up shops and
imposition of additional levies on these big chains has been demanded
by almost all sections of society.”

Local self-government minister Paloli Mohammed Kutty admitted that the
law does not prevent big retailers from operating in the state, but
said his party would try to find ways to oppose their entry. If local
self-governments, such as panchayats, municipalities or corporations,
withhold licences to the retail chains, they approach the tribunal for
local self-government institutions and get the orders, he said.
Indeed, the tribunals often rule in favour of the corporations.

In Solidarity!

Dharmendra Kumar

Director

India FDI Watch

M-09871179084

Email:dkford...@yahoo.co.uk, dkford...@gmail.com