Immediately after the Finance Minister, Mr Pranab Mukherjee, gave an assurance on the Government's commitment to further open up multi-brand retail trade to foreign direct investment (FDI), the Commerce, Industry and Textiles Minister, Mr Anand Sharma, said he will soon hold consultations with all the Chief Ministers on the issue.
Claiming that the stakeholder consultations are in the final stage, Mr Sharma said he hopes to achieve a broad-based consensus shortly on greater opening up of the sector in a calibrated manner, so that it is beneficial to farmers and consumers.
NATIONWIDE PROTESTS
However, the Confederation of All India Traders (CAIT) Secretary General, Mr Praveen Khandelwal, told
Over 5,000 trade associations comprising five crore traders in the unorganised sector will shortly hold nation-wide agitations against the move to open up retail trade to foreign investment, he said.
He said CAIT will also form alliances with prominent farmers' organisations, labour unions, consumers, small and medium enterprises, hawkers and the cooperative sector to hold protests.
RETAIL STOCKS UP
Meanwhile, shares of retail companies went up on Mr Mukherjee's statement that efforts are on to arrive at a broad based consensus on the issue in consultation with the States.
Provogue jumped 10.5 per cent, while Kouton Retail went up 3.5 per cent, Shopper's Stop (3.3 per cent), Trent Ltd (1.8 per cent) and Pantaloon Retail (1.5 per cent).
Mr Mukherjee had also said that, “Organised retail helps in reducing cost of intermediation due to economies of scale, benefiting both consumers and producers.”
Currently, 100 per cent FDI is allowed in single brand and in cash and carry wholesale trade.
However, the decision on permitting 51 per cent FDI in multi-brand retail trade, subject to compliance with specified conditions, has been kept in “abeyance” following protests.