With the visit of Wal-Mart executives to India in February and their meetings with government officials and others with whom they are building business collaboration, the issue of entry of large-scale corporate sector in retail has become a matter of urgent concern. There is apprehension among large sections of people in cities including shopkeepers, hawkers, cooperative stores, traders and activists of people's movement that this will be disastrous for our people. In a workshop to discuss its impact on their livelihood there was unanimity that the entry of large scale corporate sector will lead to large-scale loss of livelihood and will be extremely detrimental to the Indian society (see the resolution in the box). The fact that the Wal-Mart executives had ready access to the Prime Minister himself, indicates the seriousness with which the issue is being pursued albeit in a clandestine manner. This coupled with the widespread perception that politicians of the established parliamentary parties cannot be trusted to safeguard the interest of the people, led the attendees to conclude in the resolution nothing less than a big public action in the street will stop this juggernaut. A Joint Action Committee (JAC) has been formed and has been meeting regularly to plan a mass action, which is likely to include Mumbai bandh and a protest rally in Azad maidan, towards the end of April.

One of the strongest constituent of the JAC, the Federation of Associations, Maharashtra, (FAM) is hopeful that they will be able to repeat the massive mobilization that they had achieved in 1969, which was instrumental in giving birth to their organization. In 1969, it was the draconian new sales tax law by the Sharad Pawar government that had aroused the traders anger. The mass action by the traders had brought a complete halt to trading activity in Mumbai and had brought close to a lakh of people to Azad maidan. Sharad Pawar's personal appearance to pacify the traders did not prevent his government from falling. In spite of the Bill already having been signed by the Governor, the next government had no option but to withdraw the law.

Currently the situation with regard to corporate retail sector is that foreign direct investment (FDI) is not permitted in the retail sector except in single brand retail stores. A back door entry was attempted by the erstwhile NDA government in the form of "Cash-N-Carry wholesale". Under this scheme, Metro AG, the German corporate retail chain, tried to enter the retail market in Bangalore. However, traders' associations challenged this backdoor entry and were successful in preventing Metro AG from retailing. Although, many Congress Party leaders at that time shed crocodile tears in support of the traders, the traders have not forgotten that Metro AG was represented in the court by none other than Mr. Chidambaram, who is today occupying the Finance Minister's post in the UPA government.

In Mumbai, however, Shoprite Hyper group has been able to enter the retail business under the Cash-N-Carry route because there was little protest in the streets.

Fearing protest actions, the government is somewhat guarded in permitting FDI at this time. A two step process is being attempted by the Bharti Group in its engagement with Wal-Mart. A cash-n-carry model is conceived for allowing Wal-Mart investment in establishing a wholesale supply chain. This supply chain will cover all trading activities from farmers to the wholesale store. The second step would be for Bharti to establish India-wide retail stores without direct investments from abroad, which will fully utilize the economies of scale and the bargaining power which the cash- n-carry wholesale stores. Although it appears that any retailers will be able to obtain the benefits of cash-n-carry wholesale simply by becoming a member of this store, in practice this can be prevented by a host of mechanisms. For example, a very high membership fee will keep small and medium kirana stores out. Even if some stores shell out the membership fee, they can be provided inferior service due to stock-outs and delays in supplies, thereby establishing monopoly positions of the large corporate retailers.

Some in the movement are trying to make a case for only opposing FDI in retail but have no program to oppose the large Indian corporate players like Reliance and Tatas. One will have to remember that although Wal-Mart was driven out of Germany but Metro AG is very much there. Similarly, only opposing FDI will serve to help the big Indian corporate retailers in their quest to monopolise the retail market. It is the monopoly practices of corporate retailers that are responsible for ruining the small and medium stores. Once they are able to ruin a large number of kirana stores, then they will control both sides of the supply chain — buying cheaply directly from the farmers and other producers and forcing monopoly high prices on the consumers. In addition, their immense money power is able to buy favours from the politicians of the parliamentary parties and obtain various subsidies for which the consumers end up paying indirectly. These corporate retailers are known to super exploit their employees and further, there are numerous studies that demonstrate their anti-social orientation in every way.

The demand of the working people is that trade should serve the interests of the large majority of people, by making all essential goods and services accessible to the working people. By enabling private monopolies control over trade, the government is taking an anti-people stand. While wholesale trade should be nationalized in the interests of the producers and the working people in the cities, we must demand, at the same time, that retail trade is subject to control and restrictions that will ensure that the monopolies cannot pocket huge profits at the expense of the working people.

Resolution

We have gathered here today, February 17 th 2007, as members of trade associations, organizations of retail traders, street vendors and hawkers, organizations of cooperative store retailing, farmers' groups, labour unions, NGOs and other civil society organizations to discuss the serious consequences of the entry of large scale organized retailing and foreign direct investment in retailing on the livelihoods of crores of common Indian citizens.

Considering the already visible adverse impact of large malls on the business of small retailers, and the recent efforts of the state governments and municipal authorities to curtail small retailing, it was decided to immediately form a Joint Action Committee to protect the interests of the four crores of Indians working in the small retailing sector.

We strongly oppose the government encouraging and facilitating large-scale organized Indian and foreign corporate retailing. We strongly oppose Foreign Direct Investment in the retail and wholesale sector in India in any and all forms and call upon the governments to abandon their attempts to change policy to allow this. Furthermore, we object strongly to attempts by Multi-National Corporations such as Wal-Mart to enter through the “back-door”, by the Wholesale cash-n-carry route and call upon the governments to withdraw the concessions made in the cash-n-carry mode and to legislate to close such options.

We support affected stakeholder groups such as trade associations, small retailers, traders, hawkers, cooperative stores, farmers and small manufacturers in their battle to ensure the protection of millions of livelihoods.

We oppose changes in the APMC Act put forth in the APMC Model Act.

We oppose the passage of the Food Safety Bill which will make it difficult for small retailers and hawkers to vend in eatables, fruits and vegetables, facilitate the entry of multinationals and eliminate the small traders and hawkers in the name of safety.

We support implementation of such policies as the National Policy on Urban Street Vendors that will ensure the protection of hawkers in the face of rising mall culture.

We resolve to broaden the public support for the above perspective and work towards a common action at an early date.

Joint Action Committee Members as of 27.2.2007

1. Mumbai Vyapari Mahasangh (Maharashtra) 2. Apna Bazaar 3. Sahakar Bazaar (Kalwa) 4. AITUC Hawkers Union
5. Bombay Hawkers Union 6. Janwadi Hawkers Sabha 7. Revolutionary Hawkers Union 8. Hind Mazdoor Kisan Panchayat 9. Hind Mazdoor Sabha 10. National Alliance of People's Movements 11. Lok Raj Sangathana 12. Andhra Small Traders Welfare Association 13. International Federation of Hawkers and Urban Poor 14. Centre of Indian Trade Unions 15. Federation of Associations of Maharashtra 16. India FDI Watch 17. ACORN (Ass.of Community Orgs for Reform Now)