By IANS
New Delhi : The Communist Party of India-Marxist (CPI-M) Wednesday asked the government to adopt stringent regulations for retailers in organised sector, warning that the corporate houses' move to expand "aggressively" in the retail sector would affect small traders.
Pointing out that the corporate retailers have been hitting the livelihood of at least 40 million small retailers, the communists asked the government to introduce a "transparent" licensing system for retailers in the organised sector under which any retail outlet with a minimum floor area should obtain a licence from local authorities.
The CPI-M, which along with three other Left parties extends a crucial outside support to the Manmohan Singh government, has sent its proposals to all political parties and other organisations, said party general secretary Prakash Karat at a news conference here.
"The UPA (United Progressive Alliance) government should consider the proposals to regulate organised retail seriously and take immediate initiatives to frame a national policy in this regard," he said.
The communists suggested that a dedicated committee or board should be set up by the urban local bodies, with representation from street vendors and small retailer associations and it should be empowered to grant licenses to organised retailers.
"Licenses should be given on the basis of a population criterion," the proposals prepared by the CPI-M, said. It added that note more than a particular number of large retail stores should be allowed for a specified population.
"The criteria may vary between states and cities depending upon the nature of the retail sector and needs of consumers," the party recommended.
Pointing out that the government's presence in the market would be essential to stop monopoly by any big private players, the party asked the government to revive the central and state marketing agencies for reinvesting in modernising infrastructure.
"Partnerships between existing government marketing agencies and cooperatives can also be considered, especially in food retail where synergies exist," the party suggested.
The CPI-M also urged the centre and state governments to bring necessary changes on the Agriculture Produce and Marketing Committee (APMC) Act to adopt the regulations it has suggested.
Retail trade contributes around 10-11 percent of the country's GDP and unorganised retailing accounts for 97 percent of the trade.
According to the National Sample Survey of India, a decline of more than 1.25 million self-employed retailers in urban India was recorded between 1999-2000 and 2004-05.
Around 95 percent of the 12 million shops in India have a floor area of less than 500 square feet.