CAIT, CCI oppose FDI in retail business

CCI president Y V Sharma & CAIT secretary general Parveen Khandelwal addressing joint press conference in Jammu.
CCI president Y V Sharma & CAIT secretary general Parveen Khandelwal addressing joint press conference in Jammu.

* Reject Food Safety & Standard Act
Excelsior Correspondent
JAMMU, June 9: Confederation of All India Traders (CAIT) and Chamber of Commerce and Industry (CCI), Jammu have strongly opposed the entry of multi-national companies into the retail business in India and also rejected the Food Safety and Standards Act, claiming certain flaws in it.
Addressing a joint press conference here today, national secretary general of CAIT, Parveen Khandelwal and CCI Jammu president, Y V Sharma, strongly opposed the Foreign Direct Investment (FDI) in the retail business in the country and said that this move of the Central Government will render crores of small retailers in the country without work.
They said that UPA Government led by Dr Manmohan Singh was under the influence of multi-national companies and Corporate sector and taking such decisions which are against the common people of the country. They said with the opening of big Wall Mart like stores in every city, lakhs of local small businessmen will go for starvation. This move will not strengthen the economy of India. Retail sector contributes around 10% of the GDP in India and Government should stop this move immediately and bring out a national policy of retail trade.
Mr Khandelwal said more than 5 crore business establishments are working in retails trade sector across India and about 22 crore people are dependent upon retail trade for their livelihood. He said Government should consider the report of Parliamentary Standing Committee submitted on June 8, 2009 as it clearly indicated that multi-national companies will make the retail trade captive because of their enormous resources and skills and after monopolizing they will dictate their own prices. He threatened to launch country wide movement in this regard if the Government failed to constitute Special Task Force and review its decision.
CCI chief while criticizing present Food Safety & Standards Act 2006 said that it has certain flaws. He said by imposing this Act, the small traders like tea stall, dhabas, hawkers will be wiped out from the trade and that will create unemployment in the State. With this, the license fee has been increased manifold. The formalities for making fresh licenses and their renewal has increased creating sense of insecurity among this business community. This exercise will give rise to ‘Inspector Raj’. Pointing out certain contradictory provisions between this Act and its rules and regulations, Mr Sharma demanded that the Act should be kept in abeyance for at least five years or till such time some Amendments are made in the present Act.
Secretary general CCI Arun Gupta, vice president Sham Langar and CAIT national secretary Satish Garg also spoke in the conference.
Earlier, the CCI and CAIT organized a seminar on FDI in retail trade in India in which large number of traders of Jammu participated.

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