Markets shut in protest against foreign investment

Mumbai: Over 3.5 million small and medium traders in Maharashtra responded to the call for a shutdown to protest against foreign direct investment (FDI) in retail.

While many small shops in Mumbai remained open, the Agriculture Produce Market Committee (APMC), the wholesale market for grains, fruits and vegetables, remained shut with many traders shouting slogans against the government. Mathadi workers (loaders) also joined the strike resulting in a total shutdown of the vegetable markets.

Jewellers, cloth merchants, oil depots and others supported the strike and elsewhere in Maharashtra, most shops and commercial establishments remained shut in places such as Thane, Pune, Aurangabad, Nashik, Nagpur and other cities and towns. Several Bharatiya Janata Party activists and other opposition parties held demonstrations.

"The UPA government will have to withdraw its decision as we don't want FDI in retail," said Mohan Gurnani, President, Federation of Associations of Maharashtra, an apex body of over 750 trade, transport and small scale business associations.

Hunger strike

"A government that does not think about its people should be pulled down." He also said that traders will go on a hunger strike tomorrow.

"This is a question of our existence," he added.

The shutdown was 90 per cent successful said, Viren Shah, who represents retail traders in India and also heads the Federation of Retail Traders' Welfare Association in Mumbai. The response was spontaneous "as it is a matter of the very survival of our traditional businesses." He told Gulf News.

"Why is the government not thinking of protecting the 200 million small traders across the country. FDI in retail will certainly wipe out their livelihood and will only benefit big Indian corporates and a few people in the government," he said.

There are no schemes to aid the trader who has to pay an interest of 10-15 per cent on a bank loan compared to his counterpart abroad where loans cost just 2-3 percent.

Contrary to what the government and corporate houses say, FDI will not be of benefit to farmers and consumers, he says.

He criticised the Indian government's argument that infrastructure would be set up by foreign companies. "Isn't the Indian government and Indian corporate not capable of building warehouses and cold storages. This is like begging," he says.

Moreover, big Indian retail businesses like Reliance and Big Bazaar have already edged out the corner grocery stores in many cities. And big foreign retailers are bound to "ruin the economy," he believes.