For whose benefit?

FDI in retail – who will be benefitted? There is hot debate over the decision of Central government to permit 51 percent Foreign Direct Investment in Retail sector. As usual all congress ministers are raising their voice in favour of Manmohan govt’s decision. They say that farmers will get more prices, i.e. remunerative price for their agriculture products. It is not so. In Tamilnadu Namakkal, Salem, Erode and Vellore districts are known for broiler chicken farms. Farmers were making some money out of it. When few big companies entered into the field, they approached the farm owners to be their agents. i.e companies will give chicken from hatcheries, and feed materials. All that farmers need to do was, set up fencing, feed the birds with the feed as recommended, or as stipulated by the companies and grow it. Well grown chicken will be taken by the company and farmer will be given a rate based on the weight of the chicken. Initially companies begged farmers to accept their business. Later at one stage they took command. When they found some mistakes in farm, the representatives, kicked, yes literally kicked the feed trays and scolded the erstwhile owners in filthy languages. Now, farmers need to wait at chicken company’s mercy to get little birds. So, once the companies grew, they are in commanding seat and farmers are at their mercy now. What is the guarantee that this will not repeat in agriculture? Now they will offer good price for vegetables and lure farmers. Later they will fix a very minimum price and say, give it for my price, or sell it to somebody else. But, by that time other retailers might have closed their business. So, farmer will be at the mercy of this so called employment generating companies.

2. Congress says, about 35 % of agri products are wasted. But Agri ministry says it is only around 15 %. (ref. CIPHET study report on post harvest losses in September, 2010) The report was submitted in Parliament and all the congressmen are aware of this. If the wastage is more, what are the measures taken by govts to reduce this? Why they have not attempted to reduce it? 3. They say that MNCs are permitted to open retail stores only in cities with population more than 10 lakh. What is the guarantee that the rule will not be relaxed later, when the ruling party faces financial crunch? We can cite innumerable instances where the govt tried to bail out corporate when they faced problems. 4. They also say that consumer will get quality products. Does it mean that consumers are not getting quality products now? If so, who is responsible for it? What is the role of regulatory bodies of govt? It is true that regulators are being bribed by some large scale companies, and even small trader need to bribe them. So, when an MNC comes, they will be ready to do it, (give bribe) in large scale. As a result, consumer will again be cheated.

5. They also say that the retail stores will be located out of city. Those who oppose FDI say that, if MNCs buy agri products from field, the traders in smaller towns cannot get products for them and they need to depend on the big companies. In turn, this will again increase the cost. In such situation these MNCs will become middle men. By eliminating smaller middle men, govt wants to bring in corporate middle men, who in turn will pay their `masters’. 6. Those who support FDI are economists only. They are educated like that. They don’t know the rural economy. When a parliamentary committee headed by Muralimanohar Joshi and comprising about 32 M.P.s and representatives from trading community, submitted a report in parliament that no bulk investment, either from Indian corporate or from FDI should be permitted in retail sector, how the committee of secretaries found that FDI was need of the hour? 7. They say that in 1980s bank staffs opposed computerisation in their branches and now it has become mandatory. It is a customer service. The service is not competing with anybody. Can these officials try to find out how many ordinary customers are dissatisfied with the services of banks? Will they find out the reasons for that? 8. There is a claim that wallmart net profit is only 3 %. They also know that this figure is after all the tricks by auditors. Even local companies don’t publish actual figures. How do they expect such MNC to announce correct figures? 9. They also say that more than 2 crore employment will be generated. Even economists contradict this. Just by opening about 50 retail shops, it is not possible to generate employment for 2 crore people. So, govt intends to permit MNCs to open more stores in small towns also – may be hidden agenda. 10. What was the projected employment generation through various SEZs and MNC companies when permission was given? What is the real achievement? Is there any match? 11. The economists who support FDI agree that, small vendors will be affected and others will not be affected much. Are they aware of the number of small vendors in this country? 12. They scream that customer satisfaction is more important. IT people also support this, saying that they have their freedom of choice. When all other products are driven out, you will be forced to buy what is thrust upon you – don’t forget. How many of the younger generation had tasted our local cool drinks like Gold spot? How many of these youth are aware of the AP farmers use Pepsi and coke as pesticides in their fields? How many know the health hazards of these carbonated drinks? Recently when our Finance Minister Mr Chidambaram was in Japan, he assured the international community that India will fulfil its commitments the international bodies. What does that mean? Central govt says that there are various advantages in FDI in retail sector. But those few advantages like remunerative price, reducing post harvest wastage etc can be done by Indian govt itself. They need political will to do that. No need to expect some foreigner to come here and improve our business. They are trying to tell the consumers that they will get benefits by FDI. They also say that we are catering to the needs of consumers, and supply them what they want. Will the govt supply everything to the consumer, what they want? If something is injurious, it is the govt duty to prevent it. But here govt promotes it. What is the reason? Nobody has the guts to disclose it publicly