NEW DELHI: With a number of private players entering retail trade and agriculture in a big way, there is an urgent need to frame new rules to regulate their operations, the Communist Party of India (Marxist) said on Wednesday.

Releasing a six-page document comprising its proposals on a "national policy of organisational sector in retail trade," CPI (M) general secretary Prakash Karat said it was a new area and, hence, the United Progressive Alliance Government and other political parties should consider the proposals "seriously and take immediate initiatives to frame a national policy in this regard."

Several Indian corporate houses had entered the retail sector and were expanding their operations aggressively. This had an adverse impact on the livelihood of a large section of people engaged in unorganised retails across the country, Mr. Karat said.

The party proposed that licensing be introduced for organised retail. Any outlet with floor area over an appropriate minimum area should require prior licence from the local authorities (city corporations or municipalities).

A dedicated committee/board/department should be set up by the urban local bodies with representation from street vendors and small retailer associations, which should be empowered to grant licence to organised retailers.

Licences should be given on the basis of population — not more than X number of large format retail stores per Y population.

The criteria may vary between States and cities depending upon the nature of the retail sector and the needs of consumers.

Besides, a number of other steps should be taken by the Government to prevent the emergence of private monopolies in retail trade.

A single large format retailer should not be allowed to capture a large market share. For this, it is important to restrict the number of retail outlets that a single party entity can open in a city, State as well as a region, the note said.

To prevent the development of big private monopolies, it was important that the Government ensured its presence in the market.

There were several government marketing agencies, both at the Central and State levels, which need to be revived and made to reinvest in modernising the infrastructure. Partnership between the existing Government marketing agencies and cooperatives could also be considered, especially in food retail where synergies existed, the note said.

On measures to regulate and monitor contract farming to protect the interest of farmers, the CPI (M) demanded that necessary changes be made in the Model Agricultural Produce Marketing Corporation Act of the Centre as well as the new APMC Acts adopted by several State Governments to incorporate the regulations suggested.

Mr. Karat said the party did not want to set any timeframe for political parties to respond. Once the policy was in place, it should be applied evenly to all existing enterprises.

© Copyright 2000 - 2009 The Hindu