Local vendors are up in arms over Reliance's Fresh chain of stores that sells vegetables and fruit at cheaper rates, threatening the livelihood of millions of small sellers

Shopkeepers in Ranchi, in the eastern Indian state of Jharkhand, vandalised Reliance Fresh fruit and vegetable stores in the city to protest against the stores' low prices that, they say, are harming their livelihoods. The incident is an indication that opposition to big business entering the retail trade in India is gathering steam.

Thirteen people were subsequently arrested, forcing the prime minister's office to intervene on the issue. This is the second protest in less than a week in Ranchi.

On May 15, local fruit and vegetable vendors smashed glass panes and pulled down shelves at three Reliance Fresh stores in the city. Police had to use "mild force" to quell the mob.

A week earlier, on May 9, in the first large-scale, organised protest against big business entering the retail trade in India, vegetable vendors in Ranchi shouted slogans outside the three Reliance shops, accusing the firm of undercutting the prices of farm produce and pushing the vendors out of business.

Thousands of vegetable sellers, mostly women, hit the city's streets armed with brooms and pumpkins, demanding the closure of the Reliance shops. "These shops have badly affected our business. Sales of vegetables have registered a drastic decline, which is affecting our livelihood," says Vinod Bhagat, a member of the Ranchi Vegetable Sellers Association, which organised the protest under the aegis of the Swadeshi Jagran Manch.

People have been queuing up to buy vegetables from Reliance's retail shops that have been set up over the past three months. Prices here are cheaper or the same as those of the street vendors. "Reliance purchases vegetables directly from the growers and sells them in the market. They (Reliance) pay higher prices to vegetable growers and sell at lower prices. The Reliance move will destabilise us," says Basati Kumari, a vegetable vendor.

Lalmunia Devi adds: "If Reliance sells vegetables, then what we will do? Sell mobile phones and petrol? Millions depend on the vegetable trade. If Reliance is not stopped from selling vegetables, we will starve."

In West Bengal, Forward Bloc leader and State Marketing Board Chairman Naren Chatterjee said the company could face similar action if it went ahead with plans to open stores in West Bengal.

However, middle-class consumers are pleased with the bargains to be had at the Fresh outlets. "We want domestic products like vegetables at cheaper rates. The rising prices are badly affecting our budgets, and Reliance is providing us some relief," says Amrita Banerjee, a housewife.

An employee of Reliance Fresh said: "We are providing fresh vegetables at cheaper rates. This is a consumer-oriented market, and we are exploiting it."

Last year, Reliance, one of India's largest business houses, announced plans to enter the retail sector in a big way. The company has started operations in central India with the launch of six pilot Reliance Fresh stores. It plans to set up stores in 70 cities across the country by the end of 2007.

Meanwhile, leaping to the aid of big business, the Prime Minister's Office (PMO) has asked Jharkhand Chief Minister Madhu Koda to investigate the protests. The Union home ministry is also in touch with the Jharkhand police chief over the incident.

Source: www.saharasamay.com, May 16, 2007
www.ibnlive.com, May 12, 2007
IANS, May 9, 2007