India’s largest retail traders’ organization has opposed the Food Security Ordinance saying it will hurt the livelihood of millions of retailers.
“The ordinance, which will give two-thirds of the population food grains at highly subsidized prices, will put our food security at risk,” T. Nazirudeen, long-time president of the influential Kerala Vyapari Vyavasayi Ekopana Samiti (forum of traders and industrialists), told Business Line. “It will force lakhs of retail shop-keepers to close shop.”
The Samiti, which has over 3000 units across Kerala with about seven lakh members, is claimed to be one the largest such associations in Asia. It is part of the national federation of State-level retailers’ associations, the Bharatiya Udyog Vyapar Mandal, of which Nazirudeen is vice-chairman.
“Who will go to the grocer’s shop or to the grain retailer if the government gives them rice or wheat at a fraction of the market price?” Nazirudeen wondered.
The President of India, on Friday, promulgated the Food Security Ordinance ahead of the Food Security Bill, yet to be passed by Parliament. It entitles roughly two-thirds of Indians to get 5 kg of grains a month at prices ranging from Re 1 to Rs. 5. When enforced, it will be the largest such programme in the world and will cost a whopping 1.25 lakh crores a year.
SEEKS RETAILERS’ MP
Nazirudeen, who has been KVVES president for 22 years and who was re-elected for another two-year term this week, said the organization would press the political establishment to let the retailers have their voice heard in Parliament.
“We are pressing for a Rajya Sabha seat for retailers,” he said. “Since we don’t have a representative in Parliament, our views and interests are not considered when important developments in the fields of Goods and Services Tax, Wealth Tax, Income Tax and Service Tax take place. For instance, our interests were totally ignored when foreign direct investment (FDI) in the retail sector was increased.”
KVVES had in the last Lok Sabha election announced Nazirudeen as its candidate in the Kozhikode constituency, but had later been cajoled out by the United Democratic Front. It had also unsuccessfully lobbied for a Kerala Assembly seat. Nazirudeen said the campaign against FDI would continue. The organization would also resist the `harassment’ of retailers by officials in the name of Food Safety and Standards Act provisions.
KVVES had, back in 1997, forced Hindustan Lever to raise its retailer commission on a range of its consumer products through a boycott of the products. In 2000, it enforced a boycott of palm oil imported duty-free from Malaysia as the interests of local coconut farmers and traders were at peril. But, when the CPI(M) spearheaded a boycott of Coca-Cola, Pepsi and other American multinational products in 2003 in protest against the US invasion of Iraq, KVVES stayed neutral. In 2007, the organization had asked its units not to allow Reliance Fresh to open a network of vegetable outlets in Kerala because it would hurt the local retailers’ interests.