| Date: |
03-03-2012 |
| Subject: |
FDI, separate ministry and leniency: Retailers' demands for Budget 2012-13 |
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With the upcoming Union Budget, scheduled for March 16, retailers have asked the government to revisit its decision of allowing foreign direct investment (FDI) in retail, at least for the non-food segment.
In its list of recommendations, the Retailers Association of India (RAI), said, “Considering the recent political developments post the announcement of allowing FDI in multi-brand retail, and recognising that the highest opposition for the proposed FDI policy seems to be on the food retail sector (largely due to its contemplative impact on local kirana shops), we at RAI would like to request the government to consider the option of at least opening up the other sectors (non-food) to FDI.”
The retail industry also has repeated its demand for recognition of retail as an industry and assigning of a separate ministry for it. It said that the growth of retail sector could benefit the conventional retail trade, the government’s exchequer, consumers and farmers/producers. A ministry / nodal minister to look after the interests of the retail sector shall help the sector flourish and get a facelift, the RAI said.
This will also enable better financial processes due to benchmarking and enable prudent practices in retail. Retail will also become eligible for all support and incentives as applicable to other industries.
On the provision of the Food and Safety Standards Act designed by the Food Safety and Standards Authority of India (FSSAI), the RAI said that the Act in its present form, also included the retailers and it would be practically impossible for the retailer to comply with the existing provisions.
For the retailers, there needed to be simple and clear regulations with the basic intent to protect the food safety and standards.
While the retailer would take utmost care to provide a hygienic environment for the food stuff inside the store, the construction of the store and its surroundings was not in the control of the retailer, it said.
Source : fnbnews.com
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