The ruling CPM-led LDF has asked the Achuthanandan government to prevent corporate retail giants, national or multinational, from setting up shop in Kerala. The decision, the first of its kind in the country, comes close on the heels of a massive state-level traders’ shutdown sponsored by the front last week.
“The policy of the LDF is to resist such monopolies. It is for the government to formulate alternatives now,” said LDF convener Vaikom Viswan.
The government has already finalised the draft of the Kerala State Essential Commodities Act Amendment Bill to intervene in the sector.
The policy is not only targeted at multi-national corporations (MNCs) entering through FDI route but against national giants like Reliance Retail.
The latter has already opened three outlets in Kochi and has plans to open over 40 supermarkets or hypermarkets in other parts of the state. Pantaloon has opened Big Bazaar in Thiruvananthapuram and has lined up two more in Palakkad and Kozhikode.  The government would now ask the local bodies to deny operating license to retail units in the same manner it had tried to block Coke and Pepsi in the state.
Since there is a near unanimity among parties against retailers, the three-tier local councils are expected to toe the LDF line.
Govt brands coming
“We plan to set up about 35,000 PDS shops and around 17,000 large outlets apart from the existing 3,000 run by the State Civil Supplies Corporation,’’ says Food and Civil Supplies Minister C Divakaran.
According to him, hypermarkets will also be set up in the big cities.
Interestingly, the sanction for many of the existing retail markets were given by CPM-ruled local self-government bodies. Two of the Kochi outlets of Reliance were opened by CPM leaders.
The same leaders later attended a state-level traders protest against the entry of retail giants. The leaders later apologised in public for their mistake.