Retailers up in arms against curbs on trade

New Delhi: The Federation of Retailers' Association of India (FRAI) has expressed concern on Tuesday over the restrictions suggested by the Union health ministry on its right to choose products to sell and the proposed controls on its in-shop advertising.

The association also claimed that the health ministry's advisory to ban sale of tobacco products in small shops for selling everyday-use and fast moving consumer goods (FMCG)  products has severely affected lakhs of micro-retailers.

The ministry had last year issued an advisory to state governments in September asking them to allow selling of tobacco products from only authorised shops by the local municipal body.

The FRAI, an umbrella association of 40 retail associations, said that several shopkeepers in different states faced harassment for selling of tobacco products along with daily usable domestic products such as bread, eggs, soft drinks and juices.

The retailers’ association has claimed that if the suggested restrictions on the sale of FMCG products are implemented there could be a 40 per cent drop in earnings of micro-retailers.

"The introduction of restrictions for outlets selling multiple products of everyday use such as bread, eggs, juices, soft drinks and wafers along with tobacco products is the restriction of free trade and commerce and will only increase the cost of doing business as rent-seeking by inspectors would return," FRAI president Ram Asre Mishra said.

The retailers association has also appealed to Prime Minister Narender Modi to protect the interests of 75 lakh micro retailers, who sell multiple products to earn the livelihood to look after their families and save them from the potential harassment.

"We are appealing union government to reverse this suggestion. We also appealing union government to issue the notification to states to stop harassing retailers," FRAI secretary Abhay Rai said.    

D14