Walmart-Flipkart deal: Trader bodies say it will endanger jobs, small businesses

As Walmart India is all set to scale up its kirana store programme, Mera Kirana, that is likely to help small family-owned grocery stores modernise, besides opening a new fulfilment centre to expand its cash-and-carry footprint at a faster clip, over 100 trader organisations today opposed the USD 16-billion Walmart-Flipkart deal. The traders stated the mega deal would cause "irreversible damage" to small traders and endanger jobs of thousands of people. 

Releasing an open statement to highlight the deal's "multifaceted dangers" to the economy, traders associations, including Centre of Indian Trade Unions (CITU) and All India Kisan Sabha (AIKS), sought its nullification. They reportedy said that this would create an American duopoly (Walmart and Amazon) in the Indian retail sector, leading to control of consumer data by these multi-national corporations (MNCs).

"Walmart is well-known for its global supply chain, especially of cheap goods from China, which will hurt local manufacturers and suppliers," Chamber of Associations of Maharashtra Industry and Trade (CAMIT) President Mohan Gurnani told reporters in Delhi, adding "The worst affected will be small brick and mortar retail stores along with SMEs and suppliers of goods including farmers." 

Over 100 groups have now come together to oppose the Walmart-Flipkart deal, along with other signatories including National Fishworkers Forum and National Hawker Federation. 

In May, US retail giant Walmart announced the acquisition of 77 per cent stake in Flipkart for about USD 16 billion (Rs 1.05 lakh crore), marking the largest e-commerce deal so far in the country. 

Walmart India Chief Corporate Affairs Officer Rajneesh Kumar reportedly said the company is committed to India for the long term, adding "We have been running Cash and Carry business in India for almost a decade now and helping small kiranas succeed and become modern. We are sourcing locally with more than 95 per cent merchandise coming from within the country including from thousands of small farmers, small suppliers and women-owned businesses." 

Countering allegations that the deal would lead to job losses, Rajneesh Kumar said the transaction will in fact, lead to creation of lakhs of new jobs and help thousands of local suppliers and manufacturers access the consumers through Flipkart's marketplace model, where the government has allowed 100 per cent FDI. 

PTI report said that he emphasised that the two entities will continue to operate independently, adding "Flipkart will continue to run marketplace model and help thousands of small suppliers access the market and serve consumers." he said.

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When contacted by PTI, Flipkart did not respond to the query.