Multi-brand retail bomb fizzles out
It is Left, Right and Centre in the state crying foul over Union commerce minister Anand Sharma announcing the state government had supported foreign direct investment in multi-brand retail.
Chief minister Oommen Chandy has tried to wash his hand of the deal saying this was not true. Industries minister P.K. Kunhalikutty said such a move would harm the
state.
Sharma had said the central government received a commitment from seven states, including Kerala, Andhra Pradesh, Maharashtra and Assam, lending their support to the government move to liberalise the multi-brand retail market.
Congress leader V.M. Sudheeran said the state government should reconsider the decision as this would spell disaster. Opposition leader VS Achuthanandan said the move would be suicidal.
Incidentally, it was during the previous LDF rule that major retail outlets in the country like Reliance, More. and Big Bazaar came into the state.
And, around that time, Left youth organisations launched an agitation against their entry. But, legitimising their presence, then finance minister Thomas Isaac proposed a 10 per cent surcharge on the profits of big retail chains in his 2008-09 budget.
It was seen as an endorsement of organised retail, though Isaac had claimed law did not prevent them from setting up shops.
According to traders who number around 10 lakh in the state, the presence of big retailers was already choking them.
Economist and former Planning Board member K.N. Harilal said the present move was shocking as the government had gone back on its word. For a consumer state, such moves would help foster ‘cartelisation,’ he said.
He saw in Anand Sharma’s announcement in Brussels a design to let Europe have a say in domestic trade.
“During times of economic crisis, it is natural for such capital inflow and that could also be a condition for the FTA with Europe,” he said.
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