The Hindu Business Line : Reliance Retail's Bengal foray may be delayed

Much to the discomfort of the State leadership, the State marketing Board has also demanded a roll-back of KMC's plan to develop its 23 markets through private-public participation.

Kolkata. May 16

Political uncertainties may lead to Reliance Retail's planned foray in Bengal being delayed.

The uncertainties emerged as the Left Front coalition partners especially the All-India Forward Bloc (AIFB) — which controls the Agriculture Ministry — has put up a stiff resistance against the planned procurement of agri-commodities by Reliance directly from the farmers. The company has also planned setting up retail rural hubs for the same.

Finalised foray

According to sources, Reliance has finalised foray in the State with a number of neighbourhood Reliance Fresh shops of 2,000-5,000 sq ft each in Kolkata as early as in March. The company has already acquired a few properties in this regard.

The company has already expressed an interest in developing markets owned by Kolkata Municipal Corporation. It has emerged as the top bidder in one such market and was expected to participate in the bidding process for the rest.

The initiative was aimed at locating the planned hyper-markets requiring much large floor space which is not easily available in the city.

According to sources, Reliance's proposal - especially the projected benefits to farmers and consumers — has received the support of the Chief Minister, Mr Buddhadeb Bhattacharjee.

However, the change in political climate following events in Nandigram (on the SEZ issue) in March, has led to a situation whereby the Left allies were found publicly criticising Reliance's entry in agri-produce marketing.

Plea for rollback

Much to the discomfort of the State leadership, the State marketing Board has also demanded a rollback of KMC's plan to develop its 23 markets through private-public participation.

Reliance officials maintain that farmers are being harmed the most in the existing scenario.

"The agri-market in the State is valued at Rs 46,000 crore of which farmers get hardly Rs 7,000 crore or 15 per cent. This clearly shows the inefficiency in the existing system which neither benefits the consumer nor the farmer," a company source said.

This was also admitted by a senior member of the State leadership. "Contrary to our political philosophy, the existing system is clearly working against the farmer. Moreover, what Reliance is proposing is within the framework of law. However, the considerations of coalition politics may not allow us to initiate a change at this juncture," he added.

Mr Ashok Santra, CEO of the State marketing board, declined to comment on the issue.

The State Commerce and Industry Minister, Mr Nirupam Sen, said that the issue concerned various departments and it would be improper for him to comment. "As far as I am concerned, we are now eagerly waiting for Reliance to market natural gas in Bengal," he said.

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