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  4. Nationwide Traders Bandh Against FDI In Retail Gets Mixed Response

Nationwide Traders Bandh Against FDI In Retail Gets Mixed Response

New Delhi, Dec 1: Neighbourhood and small stores for rotection of whose interest an all-India bandh against FDI in retail was called today were by and large open while major markets responded to it with

PTI PTI Updated on: December 01, 2011 16:51 IST
nationwide traders bandh against fdi in retail gets mixed
nationwide traders bandh against fdi in retail gets mixed response

New Delhi, Dec 1: Neighbourhood and small stores for rotection of whose interest an all-India bandh against FDI in retail was called today were by and large open while major markets responded to it with partial to complete shutdown. 


BJP and other opposition parties have demanded a rollback on the FDI decision and the response to the bandh call in opposition-ruled Gujarat and Bihar was partial. In Delhi, Andhra Pradesh and Assam also it was partial. 

‘Kirana' and neighbourhood shops remained open in a majority of places. In Delhi, markets like Sarojini Nagar and INA disassociated from the day-long strike call, saying the protest was uncalled for.

Shopkeepers in many cities took out marches demanding a rollback of the government move even as traders' bodies said the decision will create an uneven playing field in the country which will tilt towards multi-national companies and prove to be a “nightmare” for traders and consumers. 

Confederation of All India Traders' (CAIT) Secretary General Praveen Khandelwal claimed traders across the country were participating in the strike.

“Around five crore traders belonging to 10,000 traders' bodies across the country are participating in the bandh.  Traders took out marches in commercial markets across the country,” Khandelwal said.

Big markets like Karol Bagh, Sadar Bazar, Kamla Nagar, Chawri Bazar, Kashmere Gate, Tilak Nagar, Rohini, Krishna Nagar and Greater Kailash M Block in Delhi remained closed. 

BJP also joined the strike in Delhi by organising marches and burnt effigies of Prime Minister Manmohan Singh and Delhi Chief Minister Sheila Dikshit in at least 20 locations of the city.

Small and medium traders across Maharashtra including Mumbai downed their shutters. Federation of Associations of Maharashtra (FAM), the apex body of 750 trade, transport and small-scale associations, claimed that about 35 lakh traders in the state had joined the strike.

Most shops and establishments in West Bengal downed their shutters including in the wholesale market in Posta area of Burrabazar, the largest in the state.

Ruling out any roll-back of the policy to allow foreign investment in multi-brand retail in the country, the government said it would issue the guidelines in due course. 

“The rules will be framed which answer the issues raised and decisions taken in the Cabinet,” Secretary of the Department of Industrial Policy and Promotion (DIPP) P K Chaudhery told reporters here.

Shops and business establishments in Tamil Nadu, Karnataka and Odisha by and large remained shut.  Many private schools remained closed in Patna as a precautionary measure. While ruling NDA in Bihar has extended support to the strike, Congress and LJP have opposed it. Chief Minister Nitish Kumar has said he would not allow 51 per cent FDI in multi-brand retail.

“We have received good response for the bandh in Mumbai and Navi Mumbai as traders of the Agriculture Produce Market Committee (APMC) have joined call to support the one-day bandh. Major markets of grain, fruits and vegetables, onion and potato and ‘kirana' have observed bandh today,” FAM President Mohan Gurnanisaid.

“Traders from all over the country, including Tamil Nadu, Gujarat, Kerala and other states, are strongly opposing FDI in retail. This is a question of our existence and, hence, there are no divisions,” he claimed.

Maintaining that there was no need for foreign investment in the sector, Khandelwal said here, “The Government should withdraw the permission of FDI in retail”.  He said Indian retail sector was being run successfully by the indigenous capital at the rate of 15 per cent and contributing 10 per cent of GDP. “So no FDI was required”. 

“The foreign retailers can open in big cities, but they will source from mandis across rural India and small town.  With their money and power over time, they can corner the supply of produce and dominate the outsources side,” he said.
Small and medium traders across Maharashtra including Mumbai downed their shutters. Federation of Assciations of Maharashtra (FAM), the apex body of 750 trade, transport and small-scale associations, claimed that about 35 lakh traders in the state had joined the strike.

Most shops and establishments in West Bengal downed their shutters including in the wholesale market in Posta area of Burrabazar, the largest in the state.

Shops and business establishments in Tamil Nadu, Karnataka and Odisha by and large remained shut.

“We have received good response for the bandh in Mumbai and Navi Mumbai as traders of the Agriculture Produce Market Committee (APMC) have joined call to support the one-day bandh. Major markets of grain, fruits and vegetables, onion and potato and ‘kirana' have observed bandh today,” FAM President Mohan Gurnani said.

“Traders from all over the country, including Tamil Nadu, Gujarat, Kerala and other states, are strongly opposing FDI in retail. This is a question of our existence and, hence, there are no divisions,” he claimed.

Maintaining that there was no need for foreign investment in the sector, Khandelwal said here, “The Government should withdraw the permission of FDI in retail”.  He said Indian retail sector was being run successfully by the indigenous capital at the rate of 15 per cent and contributing 10 per cent of GDP. “So no FDI was required”.

“The foreign retailers can open in big cities, but they will source from mandis across rural India and small town.  With their money and power over time, they can corner the supply of produce and dominate the outsource side,” he said.

Odisha : Shops and business establishments were shut in several places here.

Trading activities were affected in places including the state capital Bhubaneswar, Cuttack, Berhampur, Sambalpur, Rourkela and Balasore during the shutdown.

The bandh was backed by different political parties, trade unions and socio-cultural organisations.

BJP's traders' cell also backed the shutdown and asked business establishments across the state to stop all activities during the protest action.

All Orissa Vendors Association has asked all their members throughout the state to stop business during the bandh called by the All India Retailer and Traders Association.

Karnataka : Large number of traders in Karnataka today downed their shutters and joined the protest against the Centre's decision to allow 51 per cent FDI in retail trade.

Shops were closed in major business hubs in the city.  Federation of Karnataka Chambers of Commerce and Industry (FKCCI), which is leading the protest, organised dharna in front of its office here in which several traders participated.

Reports of trade bandh were also coming from various parts of the state.

West Bengal : Most shops and establishments in both retail and wholesale segments in West Bengal today downed their shutters in response to an all-India strike called to protest the government's decision to allow FDI in retail.

Most markets, including the wholesale market in Posta area of Burrabazar, the largest in the state, observed a day's token strike.

The Confederation of West Bengal Trade Associations (CWBTA), the apex body of the most prominent trade associations of the state, having over five lakh small and medium level traders, said all sister trade bodies are supporting the bandh call.

The traders alleged that the Centre's decision of allowing FDI in retail sector would spell disaster for small traders, in particular endangering the livelihood of millions of trading community.

Most of the political parties and trade unions have supported the day's token strike.

Tamil Nadu : Shop owners in Tamil Nadu downed their shutters today protesting against Centre's decision to allow 51 per cent equity in multi-brand retail.

Nearly 20 lakh traders in the state were participating in the dawn-to-dusk strike spearheaded by Tamil Nadu Vanigar Sangakalin Peravai, a body representing traders.

The Peravai leaders wanted the Centre to roll back the decision as FDI in retail trade would “harm” shop owners and workers.

The famous Koyambedu Vegetable Market in Chennai was also closed for the day as a mark of protest.  However, hotels are not participating in the strike.

Chief Minister J Jayalalithaa had strongly condemned the decision, alleging it was taken under pressure from a few retail giants. Tamil Nadu government would not allow multi-brand global players to set up their markets in the state, she had stated.

DMK President M Karunanidhi, who's party is an ally in the the ruling UPA, had also raised apprehensions over the Centre's decision and demanded the decision be withdrawn immediately.

A report from Puducherry said all shops and business establishments downed their shutters to register their protest against the Centre's decision.

The bandh was called by Puducherry Chamber of Commerce. Various political parties have also supported the bandh.

Gujarat: The call for a nationwide bandh to protest against Foreign Direct Investment (FDI) in retail sector today evoked a partial response in Gujarat with most of the shops remaining open in the new city area here.

However, Kirana shop owners and traders in old Ahmedabad observed a total bandh by downing their shutters to oppose the FDI policy of the Central government.

Also, around 40,000 textile merchants in Surat observed bandh fearing adverse impact on their businesses.

“Close to 40,000 merchants manufacturers are observing bandh as they fear that FDI in retail sector could adversely disturb their businesses,” President Federation of Surat Textile Traders Association Dev Kishan Mangani said.

“Majority of these merchant manufacturers have production capacity of 2-4 parcels of salwar suits and sarees per day (1 parcel equals 100 pcs) and have considerable presence through retail outlets,” he said.

The bandh got a marginal response at the diamond market in Surat.

“It seems 50 per cent of diamond market is supporting the call for bandh. The FDI in retail would not impact the diamond traders much,” President Surat Diamond Association Dinesh Navadiya said.

In Rajkot,a prime business hub in the state, majority of shops remained closed in protest. Electronic show rooms and furtniture market also remained shut.

“The Rajkot APMC has extended support to the bandh, paralysing the buying and selling at the yard,” President Rajkot APMC Hardevsinh Jadeja said.  However, the educational institutions and medical services remain unaffected.

The call for day long bandh was given by Confederation of All India Trade and is suppported by various trade unions and political parties like BJP and MJP (Maha Gujarat Janta party), an official said.

The Rajkot Chamber of Commerce and Industry (RCCI) has also supported the bandh. However, the Southern Gujarat Chamber of Commerce and Industry has abstained from it.

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