Ruling out any rollback of the decision to allow 51 per cent foreign direct investment in multibrand retail, the Centre on Friday asked the agitating traders to submit their suggestions for safeguards within one week. A joint working group of traders and government officials will be formed to address trade concerns.
This was the outcome of a meeting between Commerce Minister Anand Sharma and representatives of the Confederation of All India Traders (CAIT) here, where, however, there was no common ground. The joint working group is likely to be headed by P.K. Chaudhary, Secretary, Department of Industrial Policy and Promotion.
The government is also in the process of issuing the guidelines on the new FDI policy. “We are open to suggestions for safeguards that are being talked about. We are ready to address various concerns but there is no question of putting the policy on hold,” said a senior official.
Later, in a statement, CAIT secretary-general Praveen Khandelwal, who led the trade delegation, said the government had asked traders to submit their concerns in writing within a week. These issues would be looked into by the joint working group.
Traders have expressed a fear that with the entry of global retailers like Wal-mart and Carrefour there would be large-scale displacement of neighbourhood kirana shops.
Asked whether traders would end their protest, Mr. Khandelwal said the CAIT national governing council, meeting in Nagpur on December 12 and 13, would decide the issue.