SP, Left, JDS ask govt not to open retail trade to FDI

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Raising the banner of opposition to FDI in retail, UPA supporter Samajwadi Party on Sunday joined Left parties and JD(S) in asking the government not to go ahead with the controversial decision without wide-ranging consensus.

SP chief Mulayam Singh Yadav, CPI(M) General Secretary Prakash Karat, CPI General Secretary S. Sudhakar Reddy, Forward Bloc's Debabrata Biswas, JD-S' Danish Ali and RSP's Abani Roy wrote a joint letter to Prime Minister Manmohan Singh, saying parties across the spectrum are opposed to this move.

Arguing that the sector is the second largest employer in the country after agriculture, the letter said reports were appearing that the government was going to revive the decision to allow FDI in multi-brand retail trade, which was suspended due to opposition from various parties, including allies.

"We urge the government not to open up the retail trade to FDI any further. Political parties across the spectrum are opposed to this move. Many state governments have also stated their opposition. In the absence of a wide-ranging consensus, we request you not to proceed with this decision," it said.

The government had allowed FDI in single brand retailing but had suspended the decision to allow such investment in multi-brand retailing due to opposition from several parties, including UPA allies like Trinamool Congress.

The joint letter said that reports were appearing that the Government of India was going to revive the decision to allow FDI in multi-brand retail trade.

"Most of these are small unorganised or self-employed retailers. Entry of MNC supermarket and hypermarket chains would cause severe displacement of these small and unorganised shopkeepers and traders. The entry of the giant Wal-Mart supermarket chain would have a disastrous impact," it said.

The parties also said that the employment growth had slowed down according to the National Sample Survey data of 2009-10 and the entry of foreign supermarkets would further aggravate the employment situation.