Expressing disappointment at the government's decision to put on hold the decision on foreign direct investment (FDI) in retail, players in the sector on Saturday said a political consensus should be arrived at soon, in the interest of consumers and farmers.
“There is no reason why consensus cannot be built on this issue. FDI in retail would benefit farmers and consumers, who would have to now strongly come in the support of the Cabinet's decision,” said Future Group chief executive, Kishore Biyani. He said a lot of farmers and consumers were coming out in support of this. Disappointed at the development, Retailers Association of India chief executive, Kumar Rajagopalan, said, “There is a total confusion at the moment on FDI in retail issue. On one hand, we have been given an impression that a notification will be out soon on the cabinet's decision, but on the other hand, there are so many political differences”. It is a sad situation in which the picture was still not clear, he said.
In a sudden turn of events, West Bengal Chief Minister, Mamata Banerjee, on Saturday said the Centre had decided to put on hold the controversial decision on FDI in retail sector, in an apparent bid to break the Parliament logjam. The Banerjee-led Trinamool Congress is strongly opposed to the decision of allowing 51 per cent FDI in multi brand retail and 100 per cent in single brand. When contacted, most of the sector players, including Reliance Retail President (lifestyle), Bijou Kurien, refrained from commenting on the development. Bharti Retail India Chief Operating Officer, Andrew Levermore, also declined to react, merely saying it was a “tough time to comment”.
Which states backtracked Accusing the Bharatiya Janata party (BJP) of a U-turn on its stand on FDI in retail, Commerce and Industry Minister Anand Sharma on Saturday said the government would place before Parliament records showing which states supported opening of the sector to FDI.
“Let Parliament start the debate. When MPs (members of Parliament) ask this question, we will set the record straight... The BJP has taken a 360-degree turn on this particular issue,” he told reporters after meeting a farmers' delegation from Haryana. “We have letters (from states). There are letters which the Ministry of Consumer Affairs has; there are letters which the Standing Committee of Parliament has. Parliament will get to know and whatever documents we have... We will place it before MPs,” he said.
BJP vice-president Shanta Kumar has rebutted charges that Gujarat and Himachal Pradesh were in favour of FDI in multi-brand retail, which is dominated by small kirana shops. “Yesterday, an attempt was made to spread the wrong impression that Gujarat and Himachal Pradesh gave their support to FDI in multi-brand retail. I have talked to the chief ministers of both the states, and they said this was not true,” Kumar said.
Sharma said while the Centre respected the right of states that do not want the FDI in retail, “states which do not want it, cannot deprive those states which want it”. He said it was “unprecedented” that executive decisions were being questioned. “We are a Constitutional democracy and this should not have happened...We have done it after consultations... Trying to generate an understanding a consensus,” he said. The minister said farmers had welcomed it and they wanted the government to stand firm, “because they feel it was in their interest”. They also raised problems relating to the high cost of diesel and fertilisers, and the Prime Minister would be apprised of these issues, he said.
