Throwing the retail ball back into the states court, Minister for Commerce and Industry Kamal Nath said it was upto them to deal with the issue and they need to formulate the rules.
However, seeking to play it safe with a sector which is growing rapidly, the minister said “all this is an issue of the state government. It is not an FDI issue. The state governments need to formulate their rules on this to ensure that it happens in the interest of the nation.”
Violent incidents in Uttar Pradesh, Orissa and the capital against retail outlets specially by Reliance Retail and Spencers forced former to retrench about 900 employees.
Meanwhile, the Ministry has asked ICRIER to study the problems faced by small retailers following the entry of corporates into organised retail.
Foreign multi-brand retailers are not allowed entry into India’s USD 330 billion retail market, as there is fear among mom and pop store owners that the giants would take away their jobs.
Lately, even domestic corporate retail ventures have become targets of protests by traders.
Last month, Minister of State for Food Processing Subodh Kant Sahai had asked state governments not to politicise the issue of organised retail chains, saying it will hurt interest of both farmers and consumers.
“I will request the state governments that retail is not an issue. Those who are making it a political issue, are not understanding the seriousness,” he said
