FDI IN RETAIL: CAIT raises 11 questions to government

New Delhi, November 15, 2012: “Without knowing the facts and figures the leaders in the Government and Congress Party are defending the government on FDI in Retail", said the Confederation of All India Traders (CAIT).

It advised them to first obtain the true facts and figures otherwise they themselves will weak their already weakened case.

The CAIT has also advised the Chief Ministers of Congress ruled States who have deemed to understand that Notification of the government has come into operation and one by one the CMs look more eager to extend invitation to global retailers in their respective States whereas the said notification and amendment in FEMA rules by RBI are yet to be passed by both the houses of Parliament.

Alleging the Government for supressing some of the important and true facts and figures, the CAIT National President B. C. Bhartia and Secretary General Praveen Khandelwal has raised 11 questions with the Government. The questions are as under:

1. Is it not a fact that FDI policy papers laid down by Commerce Minister Anand Sharma on the floor of the Parliament on 25th November,2011 and Notification issued by the Government on 20th September,2012 do have major deviations ?

2. Is it correct that the Government came to know about the true facts and figures of food wastage in India through CIPHET study report on post harvest losses in September, 2010 ?

3. If this is true, what were the compelling circumstances which forced the Government to repeatedly quote incorrect figure of 40% food wastage till now. Why the said figure was quoted in Union Budget 2012-13 ?

4. What figure of food wastage was quoted in the Cabinet  Note on which the Cabinet took decision of allowing FDI in Retail ?

5. If this figure was quoted as 40% then why not the Minister of Food Processing and Minister for Agriculture did not raised objection and corrected the figures of food wastage, since they knew the true and correct figures ?

6. Is it not correct that Minister of State for Food Processing Harish Rawat and Charan Das Mahant did quote the reference of the true facts and figures as stated in CIPHET report  in September, 2010 ?

7. Is it not correct that development of "cold storage and modern transport system" was assigned as one of the major reason of allowing FDI in Retail then why the words "cold storage and modern transport system" were not explicitly included in the definition of backend infrastructure as defined in the Notification. ?

8. Is it not correct that inspite of knowing the fact that FEMA rules needs to be amended before making any notification, Why the notification was issued in great haste ?

9. Is it not correct that the solemn assurance made by the then Minister for Finance to consult the stakeholders before taking a decision has been flouted by the Government ? If stakeholders are consulted, the government should spell out the names with whom the consultations were made ?

10. Is it not correct that under Multi Brand Retail, the trading of unbranded grains and pulses have been allowed. If so, what are the reasons to include unbranded produce in Multi Brand Retail. ?

11. Is it not correct that before taking such a major decision which will have vital impact on livelihood of crores and crores of people of the Country, no extensive study/survey has been conducted by the Government before taking a decision ?

Both Bhartia and Khandelwal said that so far the Government has advocated only the advantageous argument not supported by any logical and conclusive material. In the larger interest of the nation. The government must reveal the logical facts. The CAIT has also sought an appointment with UPA Chairperson Sonia Gandhi on this issue.