New Delhi 14^th Sept. 2012

PRESS STATEMENT

Immediately Stop the removal of the suspension on FDI in Retail

Leaders of mass organizations of street vendors, workers, small shopkeepers, small manufacturers, joined by civil society organizations, consumer activists, environmentalists strongly condemned the Govt. of India decision to remove the suspension on FDI in multi brand retail.

In a press statement issued here today, Mr. Shaktiman Ghosh, General Secretary, National Hawker Federation, said that the decision has nullified the Govt. approval to Street Vendors (protection of livelihood and regulating street vending) Bill 2012. He said that livelihood of hawkers cannot be protected merely by creating vending zones if corporations are allowed to out-compete them in streets. He demanded a complete ban all corporations selling fruits, vegetables, groceries, and daily use goods. He also demanded that no corporate store should be allowed within a 2 km radius of areas with a density of hawkers. He informed that National Hawker Federation would organize protests on Monday and Tuesday in all over India.

Dharmendra Kumar, Director, India FDI Watch said that the Govt. decision is a blow to parliamentary democracy and alleged that Govt. has backstabbed the nation after promising in the parliament to not to take the decision unless a consensus is reached. Mr. Kumar further alleged that India is kneeling down under pressure from US and European governments and their industry lobbyists as it still has no binding commitment on multi-brand retail services in multilateral, regional or bilateral agreements. He termed the cabinet decision for 51% in multi-brand retail as letting off wild bulls of giant retailers without checks and balances such as regulations on number, size, location and provision of an economic needs test for opening a store as is the case in many countries around the world.

Kishan bir choudhary, Chairman, Bhartiya Krishak Samaj (Indian Farmers Forum) stated that FDI in retail would lead to monopoly of agricultural market and farmers would be taken for a ride by corporations. FDI backed retailers would dictate terms to farmers under contract farming and would turn independent farming families as bonded labour.

Vijay Prakash Jain, General Secretary, Bhartiya Udyog Vyapar Mandal (All India Federation of Traders and Manufacturers) termed the cabinet committee on political affairs decision as disaster for small traders and micro, small and medium industries.

Mr. Mohan Gurnani, President, Federation of Associations of Maharashtra said that our Govt. is refusing to learn from the experiences around the world and even failing to learn from its own experience of not being able to stop foreign cash and carry wholesalers from circumventing rules. He said that the infamous retail giant of the world Wal-Mart has entered from the back door using Bharti-Airtel as its fig leaf circumventing the wholesale cash & Carry permission. This is a gross transgression of the intention behind Wholesale Cash and Carry Permission. He accused that Bharti is only a thin cover for Wal-Mart’s profit making proclivities as it will only function as a fixed margin operator. The warning bells are dire for our small manufacturers, suppliers, shopkeepers and street vendors.”

Mr. Dineshwar Tiwary, a consumer activist said, “To justify themselves corporations are creating myths. They are creating the myth that they will sell cheap and fresh. But, consumers will have to pay for the high input of corporate retail such as real estate, air conditioning, educated salesmen and women, wasteful consumption of electricity and many more. In the long run, consumers will be the ultimate looser, as once corporate retail drive out their competitors and their monopoly is established they will buy low and sell at high price.

For further information pl contact:

Dharmendra Kumar at 9871179084 email: dkfordignity@yahoo.co.uk