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Bangalore , Oct. 22

Call it the Metro effect. The Bangalore Agriculture Produce Marketing Co-operative (APMC) yard has stopped transactions.

"We do a turnover of Rs 20 crore each day and this has come to a standstill. This is the Diwali season when business usually doubles, but not so this time," said Mr Rameshchandra Lahoti, spokesperson for the Bangalore Traders' Action Committee (BTAC).

BTAC, a grouping of traders, is at the head of the ongoing protest against the entry of the German retail giant, Metro Cash & Carry, into their arena.

Metro Cash & Carry opened its first India wholesale outlet at Yeshwantpur on Monday amidst demonstrations by them and a tight ring of security.

The two stores it plans in Bangalore involve an investment of Rs 176 crore. Since then, thousands of wholesale and retail traders in the APMC yard in its neighbourhood have been on an indefinite strike, demanding its exit.

The traders contend that Metro was violating the APMC Act by selling agricultural products and was acting as a wholesale front to lure retail buyers. "The licence under the APMC Act is given only to a wholeseller who should trade within the yard. Metro is outside the boundary of the yard," Mr Lahoti said.

"Retail trade is the bread and butter of India. They are undercutting us and will wipe us out. This is nothing but another version of the East India Company that has entered our country now. If they have provided jobs to 750 persons, what about the jobs that the APMC has been providing to more than 7,500 hamalis, accountants and several others," he said.

Meanwhile, Metro claims an overwhelming response from retailers, wholesalers, distributors and various small and medium businesses such as restaurants and said it has a registered membership of 1.6 lakh licensed traders. In three weeks' time, it plans to open a second outlet at Kanakapura in the south of the city. This plan is unaffected, a Metro spokesman said.

He said the 6,000-sq m outlet does not stock agricultural products such as fruits, vegetables and grains. "Metro Cash & Carry will only sell products fully in compliance with all Central and State level statutes. Since this issue is still not resolved we have not stocked any notified agricultural commodities in our distribution centre." The clause in the FIPB approval, that products and processes should be sourced locally, was being adhered to.

The company has sought an amendment to the APMC Act to enable it to trade from outside the yard. It has a godown in the yard and is in talks with the Government and hopes to resolve the issue soon, the spokesman said.

Metro is offering wholesellers huge price differentials ranging from 5-25 per cent in 17,000 items. This, according to Metro Country Manager, Mr Harsh Bahadur, is the cost saved on logistics and intermediaries. The local trade fears this is predatory and meant to undercut its own ground.

Meanwhile, the 1,000-odd traders have sought a meeting with the Agriculture Marketing Minister and Mr Lahoti said they would not withdraw their stir until their plea was heard. On the other hand, the High Court today posted their petition for hearing on November 5.

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