Kerala to upgrade ration shops to combat retail majors

Monopoly retail chains waiting in the wings to begin operations in Kerala are set to see intense competition with the state government planning measures in this regard.

Prominent among them is the state government's plan to modernise and upgrade ration shops across the state to make them popular essential commodities outlets.

"The government will make sure that as many as 14,000 ration outlets, particularly those in rural areas, are modernised in a bid to make more people opt to shop for essential commodities at these outlets," C Divakaran, Kerala Minister for Food and Civil Supplies, told Business Standard.

Adding that the modernisation and upgrade of ration shops will begin soon, Divakaran said "the plan is to undertake the exercise in a phased manner. An amount ranging between Rs 25,000 and Rs 50,000 will be spent on each shop".

Giving details, the minister said that each shop will have features like air-conditioning, electronic machinery and a modern outlook akin to those in bigger shops.

"With the Onam season proving beyond doubt that the SupplyCo outlets and the People's Bazaars were visited by huge crowds of consumers, the fair price shops with a modern outlook would be the focus area of the civil supplies department," he added.

On the proposed legislation to check entry of retail biggies in the state, Divakaran said a draft Bill is currently being assessed by the law department. "We will table the Bill in the next session of the Assembly," he added. The law, when passed, will be called the Kerala Essential Commodities Act, 2007.

Explaining the salient features of the proposed law, Divakaran said that any retail company wishing to open shop in the state will have to take the government's permission. The current practice is that the companies are given the go-ahead after being scrutinised by the local self-government.

"This practice will go. Besides, they will have to submit a statement in writing that they will adhere to the rules and regulations spelt out by the government," Divakaran added.

When asked whether the government plans any restriction on the number of retail outlets the companies intend to open, the minister said, "The government has come to know that the retail outlets already operating in the state are seeing less business than what is being stated. So, the number of outlets is not going to be an issue at all, as many may not even consider opening more outlets here."