IndiaRetailBiz

S. Ramadoss headed PMK (Pattali Makkal Katchi), the ruling alliance partner in the DMK ruled Tamil Nadu, has asked Reliance to pack up in one month as small vegetable vendors according to him are unable to compete with the retail giant, reports DNA Money. Reliance Fresh currently operates 12 neighbourhood, convenience, retail stores in Chennai. S. Ramadoss, a powerful ally of Karunanidhi, had recently forced the DMK government to shelve a satellite city project on the outskirts of Chennai city. PMK, is also a partner in the ruling UPA alliance at the Centre. It is represented by two ministers including Dr. Anbumani Ramdoss, the Union Health Minister.

“News Today” speculates that the PMK leader, who is demanding the closure of Reliance shops, is trying to influence Nadar votes (the local shops incidentally are known as Nadar Kadais).

Reliance ‘Fresh’ to ward off opposition from small retailers and push cart vendors has opened a ‘cash and carry’ wholesale format called ‘Rangers Farm’ to supply fresh farm produce at lower than consumer rates.

In a related development, in another sothern state of Kerala, bordering Tamilnadu, the ruling CPI-M led left alliance government, in a move to counter the big retailers like Reliance and Wal-Mart, has decided to offer subsidies of Rs 150 crore through its agriculture department, which beside promoting cultivation of horticulture products in three districts of the state, will arrange for their direct procurement from the farmers and sell the same through retail outlets to be set up by Horticorp (The Kerala Horticultural Development Corporation). Farmers, who will receive subsidy of Rs. 15,000 per hectare for the first three years, will enter into a sale agreement with the government for the supply of farm fresh products.

In another move, the government has also decided to launch 5,700 retail shops to sell subsidised provision. The government has earmarked Rs. 30 crore towards subsidy for this which will be disbursed throgh its co-operative department.