Indian traders strike against retail reforms

Dec 1, 2011, 12:49 GMT

New Delhi - Thousands of shopkeepers and traders across India went on a day-long strike Thursday in protest against the government move to open the retail market to global supermarket chains.

The shutdown impacted the main cities of New Delhi and Mumbai and some states, while the strike was only partially observed in other regions.

The strike was called by the Confederation of All India Traders (CAIT), which said the move to allow 51-per-cent foreign ownership of multi-brand stores will hurt small retailers as well as farmers.

The industrial action was backed by the main opposition Bharatiya Janata Party, as well as left-wing and regional parties who have demanded that the government rescind its decision.

CAIT secretary general Praveen Khandelwal claimed that more than 10,000 traders' organizations were participating in the strike.

Marches were held in markets and effigies of Prime Minister Manmohan Singh were burnt in some places.

Khandelwal said the decision would create an 'uneven playing field,' biased towards multi-national companies, and prove to be a 'nightmare' for traders and consumer.

The Indian cabinet's decision last week sparked a political storm, as even allies of Singh's coalition criticized the move.

Opposition lawmakers have staged angry protests in parliament, preventing it from functioning properly throughout the week.

Singh has said that opening up India's retail sector would benefit farmers and consumers, and has maintained that the government will not withdraw its decision.

'The move will curb inflation and the common man can get daily essential commodities at lesser rates,' he said.