The member of the national council of CII and its Eastern Region Vice Chairman, Satyajit Kumar, has written a letter to the chief minister, drawing his attention to the benefits that would accrue to the small and medium enterprises (SMEs) as well as to farmers and consumers once the retail sector is opened up.
“Your recent decision to oppose FDI in retail is a big disappointment for the SMEs of Bihar. The retail sector is currently the second largest employers after agriculture and thereby it has the potential to be a part of a socio-economic transformation in the state,” the letter says.
The Centre’s proposal clearly says that those opening multi-brand retail shops would have to purchase 30 per cent of their stocks from SMEs. Kumar cited the example of the entry of just one big player like Big Bazaar in Patna, which has benefited about 70 SMEs of the state who are supplying their products to its outlet in Patna. It can be anybody’s guess what kind of benefits would accrue to this sector when a global player like Walmart enters the state market.
The letter further said Bihar was home to a little over one lakh SMEs which had a combined turnover of about Rs 7,000 crore. These units don’t have the financial muscle to develop a network across the nation to set up a supply chain. Availability of local demand in the form of big players of retail sector would help these units. Moreover, growth in SMEs would also create more jobs in this sector, he added.
Kumar’s letter reminds the chief minister of his recent visit to China where FDI in retail has been permitted. It has benefited farmers, SMEs, youth and consumers in that country.
The letter also talks about the provision which allows state governments to frame their own rules and regulations in which the benefits for farmers, unemployed, SMEs and consumers and interest of traders can be ensured.

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