The large stores are good only for those who buy their household requirements on a weekly or even on a monthly basis. Unfortunately, many of our people do not have enough money to buy even for the next day!
“However, there has to be enough competition in the retail sector, not only to give a better deal to the consumers, but also, and probably more importantly, to protect the small and medium producers from the monopsonistic anticompetitive practices of the giant retailers”, said Mehta.
Globally, it has been found that they undercut the producers even though the consumers smile. In India, the producers are not only the big companies but also small producers and farmers.
Going slow on retail FDI can be a good strategy to promote competition in the sector in the long run. Though the sector is growing, there are not too many large players and hence immediate opening to FDI might mean that the market will be dominated by a few giants.
By giving some time to the domestic retailers to grow and then opening up for FDI will ensure a more competitive market in the long run.
In the short to medium term, it must be ensured by the competition authorities that these domestic retailers do not abuse their market power, in the long run, it would better to allow the foreign retailers rather than relying on competition enforcement.
The crux of the issue is that promoting and maintaining long run competition should be the objective of the retail sector policy.
CUTS International (Consumer Unity & Trust Society) began its journey in 1983 in Rajasthan, from a rural development communication initiative, a wall newspaper Gram Gadar (Village Revolution).
This monthly is published regularly and has been instrumental in providing a forum for the oppressed classes to get justice. On seeing Gram Gadar, Rubens Ricupero, the immediate past Secretary-General of UNCTAD observed: “It confirmed my view that often the simple lack of awareness lies at the root of so much misery”.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
