NVCC, CAIT protest against Walmart-Flipkart deal

Source: The Hitavada      Date: 03 Jul 2018 10:49:50



Business Bureau

Nag Vidarbha Chamber of Commerce (NVCC), one of the leading traders organisations of the region supported the sit-in protest call given by CAIT against Walmart-Flipkart deal. A memorandum was handed over to the Collector of Nagpur District. On Monday, more than 10 lakh offline and online traders of the country on Monday joined sit-in protest at about 1,000 places across the country under the umbrella of the Confederation of All India Traders (CAIT) demanding the Government to scrap the deal since it will prove much against the interests of retail trade and economy of India.In Delhi, the protest was held at prominent commercial market Karol Bagh whereas similar protests were held at Mumbai, Nagpur, Pune, Surat, Ahemadabad, Bhopal, Chennai, Hyderabad, Banglore, Pondicherry, Raipur, Rourkela, Ranchi, Kolkata, Lucknow, Kanpur, Allahabad, Jhansi and at other cities in the country.

The protesters across the country demanded the Government to scrap the deal and immediately formulate a policy on e-commerce and constitute a Regulatory Authority to regulate and monitor the e-commerce market. CAIT said that if this issue is not addressed immediately, the traders of the country will decide future course of action in national convention of CAIT to be held at Delhi from July 23 to July 25.B C Bhartia, National President of CAIT while strongly objecting the merger of the two companies at the sit-in-protest at NVCC premises, said, “Walmart which is worlds largest retailer will create an unfair competition and uneven level playing field and will indulge in predatory pricing, deep discounts and loss funding. On the other hand, Flipkart is a combination of predation, exclusive tie-ups and preferential sellers where even online vendors face discriminatory conditions. Walmart being the owner by virtue of 77 per cent share is bound to give preference to its inventory. There will be denial of market access to non preferred sellers coupled with complete annihilation of small time traders on offline platform”.

Hemant Gandhi, President of NVCC said, “The deal is similar to that of the East India Company, entering the Indian market. This time an American company, Walmart is trying to enter the Indian market through e-commerce. Walmart will sell the goods below the production cost, due to which the local players will be out of the market as they will not be able to sustain with such unethical practices.”
“The interest rate on loan in foreign countries is between 1.5 per cent and 2.5 per cent, while that in India it is between 12 per cent and 20 per cent. The difference in the borrowing rates is enough to destroy the local players. They will sell the cheapest items purchased from all over the world, which might even destroy our MSME sector,” Gandhi said.

In their memorandum to the Collector, NVCC and CAIT demanded formation of e-commerce policy; form regulatory authority for e-commerce; stop the Walmart-Flipkart deal till all the minute details of the deal are studied. Present were Prakash Mehadia, Mayur Panchmatiya, Raju Vyas, Ashwin Mehadia, Sanjay K Agrawal, Sachin Punyani, Farooque Akbani, Ramavtar Totla, Shabbar Shakir, Raju Vyas, Pratap Motwani, Dyaneshwar Rakshak, Gajanan Gupta and others.