December 1-15, 2007
Traders protest against big corporations in wholesale and retail trade
The entry of big Indian and foreign multinational corporations in wholesale and retail trade is being vehemently opposed by traders, small shopkeepers and farmers. Small traders and shopkeepers are in danger of losing their livelihood as a result of the entry of these big corporations. With these big corporations directly procuring agricultural produce from the farmers, the livelihood of these farmers will also become endangered once these corporations get monopoly control over the market.
In early November, it was reported that nearly 50 crates of fruits of Reliance Retail were set on fire by traders of the Agriculture Produce Market Committee (APMC) of the Vashi wholesale market in Navi Mumbai. This occurred in the course of the protest actions by tens of thousands of traders and mathadis (headload workers), against the granting of APMC licences for procurement to Reliance Retail. The protestors alleged that Reliance segregates the fruits bought from the market into the good quality ones (as per Reliance standards) which are then sent to their outlets and the rest are dumped at throwaway prices in APMC. This is affecting the prices of the other fruits in the market and farmers are unable to get a remunerative price for their produce.
On November 7, small traders in Bhubaneshwar observed a complete shut down of all trading activity. Over 4000 traders participated in a rally organized by the Rajdhani Byabasai Jibika Bancho Samiti. They claimed that Reliance has bought land to do farming, after which they will sell their product in the market at a much cheaper price, thereby affecting the business of the local traders and later, they will increase the prices to exorbitant rates and make it even more difficult for residents and for the local traders to compete. Similar protests in Cuttack have also been reported.
Reliance Retail Ltd., a subsidiary of Reliance Industries, is reported to be investing nearly 6 billion dollars in hundreds of stores selling a variety of goods all over India. Reliance already has more than 90 fresh vegetable and food stores. It expects to start opening hypermarkets in the next few months.
Traders’ protests are also targeting Wal-Mart which launched a partnership with India ‘s Bharti Enterprises to build a chain of hundreds of supermarkets in August this year. Other big multinational retailers, including Tesco of the U.K. and Carrefour of France and German company Metro, which have evinced interest in India ‘s retail market, are also being opposed.
In recent months, Reliance’s stores were vandalized in Orissa, Uttar Pradesh and Jharkhand. In November, nearly 5,000 small retail traders from all over the country descended on Mumbai to lead a massive protest rally against Wal-Mart and other big corporations setting up big retail outlets in India. Reliance Fresh and Heritage Fresh outlets have also been targeted by protesting traders and shopkeepers in the Telengana region of Andhra Pradesh.
The government has already opened up single brand retail for FDI. However, protest actions all over the country have forced the government to temporarily shelve its proposal of allowing foreign direct investment (FDI) in retailing of electronics and sports goods to 51%.
The growing anger and resentment among the small traders, shopkeepers and farmers, against the threat to their livelihood is likely to find expression in many more protest actions in various parts of the country. People's Voice fully supports this struggle – an integral part of the struggle in defence of the livelihood and rights of our people.
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