Interviews
Retail policy must ensure competition - CUTS
25 Dec '06
3 min read
The retail sector continues to be in news. Though the government has decided to go slow on allowing FDI in the sector, big things are happening, whether it is Reliance making foray into this emerging area, or Bharti joining hands with Wal Mart.
In a press release issued here, CUTS International, a leading research and advocacy group has asked the government to adopt a proper policy and regulatory framework for the retail sector, which can ensure that competition is embedded in the sector, for the benefit of both consumers and suppliers.
“Our studies across both rich and poor countries have shown that wherever big retail or supermarket chains operate, both the consumers and producers get the short end of the stick, in the absence of proper regulation”, says CUTS Secretary General, Pradeep S Mehta.
CUTS works on competition and regulation issues around the world, through its multi-country projects and offices in London, Lusaka, Nairobi and Hanoi.
The moot point is that the sector is going to grow even if there are concerns about the small traders being adversely affected. However, it would not be prudent to stop growth of this sector just to protect small traders.
Because this is the way things are going to move and should move in the long run. Though it is naïve to argue that the small traders will not be affected, the fear is often exaggerated.
Small traders have some advantages. Not only that they can be conveniently located, large section of our population cannot afford to visit the large stores.
In a press release issued here, CUTS International, a leading research and advocacy group has asked the government to adopt a proper policy and regulatory framework for the retail sector, which can ensure that competition is embedded in the sector, for the benefit of both consumers and suppliers.
“Our studies across both rich and poor countries have shown that wherever big retail or supermarket chains operate, both the consumers and producers get the short end of the stick, in the absence of proper regulation”, says CUTS Secretary General, Pradeep S Mehta.
CUTS works on competition and regulation issues around the world, through its multi-country projects and offices in London, Lusaka, Nairobi and Hanoi.
The moot point is that the sector is going to grow even if there are concerns about the small traders being adversely affected. However, it would not be prudent to stop growth of this sector just to protect small traders.
Because this is the way things are going to move and should move in the long run. Though it is naïve to argue that the small traders will not be affected, the fear is often exaggerated.
Small traders have some advantages. Not only that they can be conveniently located, large section of our population cannot afford to visit the large stores.
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