IndiaRetailBiz

All’s well that ends well! Metro C&C the, Indian cash and carry subsidiary of global German retail giant Metro AG, after protracted political battles between ruling Left Front constituents CPI (M) and All India Forward Bloc (AIFB) in West Bengal, got the third renewal for APMC licence.

All traders desirous of dealing in agri-products are required to obtain APMC licence from the Agriculture Promotion and Marketing Corporation, which in the state is currently under the control of AIFB.

Despite reconciliation between ruling partners to renew the licence, which came about after CM Buddhadeb Bhattacharji directed the local District Megistrate to issue the licence to the retailer bypassing the corporation’s authority, AIFB began to insist on attaching commercially unrealistic conditions to the licence.

One of the most contentious conditions insisted upon by the Bloc was to insist on a minimum sales amount of Rs 5,000 per item. CPI-M, however, was opposed to putting any such stiff condition.

The final settlement happily was arrived at the the figure of a minimum amount of Rs 1,000 per invoice (and importantly not per item).

Another condition attached to the renewed APMC licence stipulates sale of agri-commodities to only those customers who hold “a trade licence, an RMC (Regulated Market Committee) licence, or any other business licence issued by an appropriate authority.” Metro should have no problem in accepting such a stipulation as it bars individuals from buying products from its stores.

Settlement of this long pending dispute has come as a welcome relief to the Chief Minister who is still licking wounds of Tatas’ recent exit from Singur to Sanand (Gujarat) for their Nano car project.

It is interesting to recall that Germany’s counseller in Kolkata had threatened to pull off from all potential investments from West Bengal, if Metro’s licence was not renewed.

While, expressing his satisfaction, Frits van Peski, Executive Director of Metro, hoped to launch the new store in Kolkata within a couple of months. Metro is currently operating four cash and carry stores in Bangalore (2), Hyderabad (1), and Mumbai (1).