The government and the corporate sector have been boasting of the decision to allow foreign direct investment in the retail sector as being a mass job creation move and a price-lowering measure (“FDI in retail, trigger for another day of tumult,” Nov. 26). But the government has failed to consider the long-term extraneous costs that would supersede these advantages. Though refrigeration, supply chain management, and better transportation will reduce costs, this is not enough. The onus will be on farmers to increase yields per acre, which will entail the use of more powerful pesticides, herbicides and fertilizers. According to a study conducted by the Food and Agricultural Organisation in 2004, Indian farmers utilised 17 million tonnes of fertilizers. Since bio-fertilizers are not heavily subsidised as chemical fertilizers, farmers will lack the incentive to increase the use of ecologically safe bio-fertilizers.
Second, will this facilitate the backdoor entry of genetically modified crops and produce?
The third and the most important thing that we should worry about is the labour problem. It could trigger a search for cheap labour, which might include child labour, to cut production costs.
Adhithya Rajasekaran,
Chennai
The Centre's decision is questionable. It must understand that retail in India comprises family-run, street-corner stores which account for 97 per cent of business. Global retailers will destroy these domestic chains. We are already facing problems vis-à-vis our neo-liberal policies and care must be taken to ensure that sensitive sectors like retail do not experience the negative dimensions of globalisation and liberalisation.
Ashwin Kurian,
Chennai
Why this move? A multi-party committee should have been formed with fair representation from ordinary people and small-scale retailers to discuss the pros and cons of the policy.
Shahul Hameed,
Abu Dhabi
BJP leader Uma Bharti's contention on FDI in retail that “…Centre has jeopardised the employment opportunities of Dalit, poor and backward people” is misplaced (“I'll set Walmart store afire: Uma,” Nov. 26). Rather, the new management system that comes along with FDI does not discriminate and is fair in staff selection. In such chains, it is service, efficiency and an appropriate refund policy that count.
N.K. Sahu,
New Delhi
Walmart was founded in 1962 and has 1.2 million employees. And it has withdrawn from parts of Europe. So where does this figure of 10 million new jobs come from? There are about 20 stores of Marks & Spencer in India after about 10 years. Can Minister Anand Sharma also substantiate his claim of billions of dollars of investment flooding into India? His claims (“Business,” Nov. 26) should not go unchallenged.
Saurabh Sharma,
Chennai
Small traders do not give any receipts for purchases even if you ask them. Do they pay sales tax to the government? Most of them are unorganised and there does not seem to be any sign of trade inspection.
Sethuraman,
Chennai
The Centre's unwise move will result in job losses as home-run establishments will find it hard to match the quality and pricing of foreign brands — with the middle-class patronising foreign retail outlets. The decision seems more ‘skewed' towards favouring corporate honchos than appeasing Indian citizens. Whatever happened to ‘Be Indian and Buy Indian'?
Ashok Jayaram,
Bangalore
The government's reform programme which seemed to have hit a roadblock, thanks to mega scams and scandals, is back on track. The measure is a bold move. Manmohanomics is alive and kicking!
N.J. Ravi Chander,
Bangalore
