Business Daily from THE HINDU group of publications
Saturday, May 31, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Saturday, May 31, 2008 ePaper | Mobile/PDA Version | Audio |
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Marketing
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Retailing Trader’s body says report on organised retail is biased “We will hire a research agency within a week to prepare an impartial and transparent report.” Our Bureau New Delhi, May 30 The Confederation of All India Traders (CAIT), an apex body of trader and federation association, has condemned the Government-sponsored Indian Council for Research on International Economic Relations (ICRIER) report on organised retail terming it as biased and overlooking the ground realities of Indian retail trade. While demanding the Government to formulate a National Trade Policy for Retail Trade and Small Manufacturing Industries, the CAIT Secretary General, Mr Praveen Khandelwal, said, “the report is short-sighted and does not take into account the long-term impact on farmers, manufacturers and consumers. It has been designed in a manner to draw a rosy picture facilitating further entry of MNC retailers.” He said the trader’s body will soon commission its own study to assess the impact on the unorganised sector. “We will hire a research agency within a week to prepare an impartial and transparent report,” he added. Noting that small retailers have been showing a steady erosion both in turnover and bottomline with the entry of organised retail, Mr Khandelwal said, “Profit margins have come down to five per cent from 8-10 per cent a few years back”. CAIT also alleged that the multi-national retail chains employed predatory pricing where they cut prices so low to wipe out competition, and if this was allowed in India, it would add to the inflationary pressures. The association also called for a cluster approach to convert the unorganised retailers into shops under cluster programme. The ICRIER’s report on ‘Impact of Big Retail on Neighbourhood Stores’ was released on May 26. The overall size of retail market in India at present is estimated at Rs 15 lakh crore. Only about three per cent of the retail trade is in the organised sector, the balance 97 per cent is still unorganised. More Stories on : Retailing | Industry Associations
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