IndiaRetailBiz

Believe it or not, but the long awaited report on big retail’s impact on the livelihood security of small traders, based on the findings of which the government is to prepare its policy on retail, according to a DNA Money report, is stuck on account of squabble over a paltry sum of Rs. 16 lakhs.

The report on the government’s directions is being prepared  by ICRIER — the premier economic think tank of the country.

ICRIER had agreed to submit findings of its study to the government within five months of its accepting the assignment.

It now transpires that the Commerce Ministry of the Government of India, which had entrusted the task to ICRIER in February 2007, is unwilling to accept the tab of Rs. 16 lakhs raised by the Agency towards charges against additional survey work done by the agency, as the government wanted to broad-base the original scope of the study.

It may be recalled that the government had decided to conduct a study following a missive from the UPA Chairperson Sonia Gandhi to the Prime Minister Man Mohan Singh on the subject. Mrs. Gandhi had raised the concerns about livelihood security of small traders following the agreement between Bharti and the world’s largest retailer Wal-Mart for retail operations in the country.

ICRIER, among others, was asked to come up with answers to the following questions:

• How do big retailers impact mom and pop stores?

• What is their impact on employment?

• Do they augment or reduce the incomes of producers, vendors and small retailers?

• If allowed, will big retailers spur investment in cold chains and warehouses?

• And whether it will lead to standardisation of farm products

Although, the agency is reported to have prepared the report in August, 2007, according to which it is believed to have come to conclusion that the country’s traditional kirana (moom n pop) stores have been able to adjust to the emergence of organised retail in the country, the government wanted to enlarge the scope of the study and wanted the agency to carry out further surveys. The additional bill of Rs. 16 lakhs relates to this additional work.