AP welcomes big retail chains

Others may be discouraging big retailers from setting up shop in their states but Andhra Pradesh is ready to roll out the red carpet for them.

"Big retail outlets are welcome in the state of Andhra Pradesh. Our experience in the past one year is that they can give a better price to farmers and better products at affordable rates to consumers. I think we should encourage them," Chief Minister YSR Reddy said.

Organised retail chains would hurt only the intermediaries and brokers in the farm trade business, he said.

Asked whether big retailers would not hit millions of small shopkeepers in the state, Reddy said they "will always have their way of earning. But that does not mean if a particular thing is not remunerative, one continues the same trade and same avocation. I do not think that is right".

"Efficiency and productivity have to improve in an era of globalisation and liberalisation. Even the farmers will not be happy if the productivity does not go up," he said.

Reddy's remarks assume significance in the context of organised retailers like Reliance Retail facing protests in states like Uttar Pradesh, Orissa, Kerala and Jharkhand.