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Open letter by ‘Joint Action Committee Against Foreign Retail and E-commerce’ (JACAFRE) on farmers’ agitation

Statement issues by under JACAFRE umbrella by traders associations of new farm laws and the farmers unrest around it. English version below and also here. Hindi translation is here. Punjabi translation is here.

 

11th January, 2021

Open letter by ‘Joint Action Committee Against Foreign Retail and E-commerce’ (JACAFRE) on farmers’ agitation

Respected Shri Narendra Singh Tomar, Minister of Agriculture & Farmers Welfare

Respected Shri Piyush Goyal, Minister of Commerce & Industry

‘Joint Action Committee Against Foreign Retail and E-commerce’ (JACAFRE) was formed in 2018 to resist the entry of foreign corporation like Walmart and Amazon into India’s e-commerce market. Now, some Indian mega-corporations, like Reliance, are going down a similar path of exploitation if not extermination of small traders, partnering with global tech corporations like Facebook and Google. We stand equally in opposition to their ill-intentioned efforts.

Three new farm laws have been passed by the Parliament of India in September 2020, namely (i) The Farmer’s Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, (ii) The Farmer’s (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020 and (iii) The Essential Commodities (Amendment) Act, 2020. They centre on enabling and facilitating unregulated corporatisation of agriculture value chains, and thus of livelihoods dependent on agriculture. In this process, farmers as well as small traders of agricultural produce become subservient to the interests of a few agri and e-commerce giants. It is not just those traders who directly participate in Agricultural Produce Market Committee (APMC) mandis which get adversely impacted. Removal of possibilities to cap stock limits in the Essential Commodities Act, for instance, seem aimed at allowing a few giant corporations to dominate the entire procurement and trading chain for agri produce at the expense of small and medium traders.

The Government of India, and many state governments, seem intent on pursuing a new economic model where a few giant corporations, through digital or e-commerce platforms, closely control all ‘small economic actors’ in any value chain – be it primary producers, like farmers, or traders, SMSEs (small and medium scale enterprises), and small service providers (like taxi-drivers on Uber). All these ‘small economic actors’ are to be driven into a position of subsistence level existence if not complete elimination from their economic roles. Many traders have had to shut shop because they could not stand the onslaught of giant e-commerce corporations; others have seen greatly diminished revenues.

Employing data pertaining to the dependent ‘small economic actors’, these giant digital commerce corporations begin to exercise a 360 degree control over them. This is achieved through managing their physical as well as informational inputs, operating ancillary services like warehousing, logistics and payments, and controlling the all-important supply of credit, through minute access to all financial, trade and production data. Such new models of 360 degree panoptic, digitally-enabled, control by a few corporations over all small and dependent economic actors – be it traders, farmers, MSMEs or small service providers – is unsustainable and must be urgently checked. The farmers’ agitation needs to be seen in this larger perspective. If the new farm laws are closely examined, it will be evident that unregulated digitalisation is a very important aspect of them.

Taking forward a thinking and process that earlier governments at the centre, and many state governments, have also been pursuing, the present government unfortunately has formalised them into new provisions and laws regarding e-commerce and agriculture markets.

The government should urgently consult all stakeholders – traders, farmers, MSMEs, and others – towards a holistic new economic model where all economic actors, small and big, are assured their due and appropriately valued role. These small economic actors cannot be allowed to be reduced to being helpless agents of a few corporations, controlled closely through data and digital means. We need a completely new thinking in this regard.

Governments must step in to mitigate the ill-effects of wholesale corporatisation of erstwhile independent economic actions and actors, like farmers and traders. They need to provide (1) supporting institutions, like APMCs, and government supported e-commerce platforms like eNAM and ‘Open Network for Digital Commerce’; (2) protective regulations like banning e-commerce platforms from trading on themselves, and caps on hoarding agri produce; and, (3) direct interventions in pricing and value share mechanisms, like curtailing predatory pricing and forced discounts on e-commerce platforms, providing Minimum Support Price (MSP) for farm produce, and limiting the cut taken by transport platform companies (Uber, Ola etc.).

All such governmental interventions are essential to keep our economic system fair to all actors against the onslaught of super-powerful digitally enabled mega-corporations. Government is already doing many of these things, but they should all be made consistent and brought under one holistic economic model.

We appeal to the government that it should urgently address the issues raised by those farmers asking for the three laws to be repealed, by at least holding the new farm laws in abeyance and giving them a full re-consideration. Specifically from a traders’ point of view, the role of small and medium traders all along the agri produce value chain has to be strengthened and protected against its unmitigated corporatisation. The government must inter alia strengthen APMCs and remove the tax that is levied on trade undertaken in APMCs. There is no doubt that with passage of time there has been considerable distortion in the way APMC mandis work, but the need of the hour is to improve their working rather than destabilize them.

The government should indeed utilise this opportunity to re-visit the entire economic model where a few digitally-powered mega corporations are to have complete control over every economic sphere and sector. But the government seems to be withdrawing from its role of active economic regulation, protection and promotion. All stakeholders need to sit together to explore alternative economic models where every actor in economic value chains has sufficient control and agency over its specific sphere of contribution, and economic exchanges and value shares are fair and just to all.

We offer ourselves to contribute to any such constructive exercise, which should be initiated as soon as possible. Such an exercise is what will really contribute to a Bharat which is Atmanirbhar and Mahaan.

Sincerely,

Joint Action Committee Against Foreign Retail and E-commerce

Bhartiya Udyog Vyapar Mandal

Federation of All India Vyapar Mandal

Federation of All India Distributors Association

Chamber of Associations of Maharashtra Industry and Trade

Forum for Trade Justice

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Walmart Deal Would be a Colonial Style Deindustrialisation of the Economy

Shyam Bihari Misra (Bharatiya Udyog Vyapar Mandal) talks about how the current BJP government’s approach towards FDI is not at all in the interest of the people of this nation.
Prof Prabhat Patnaik (Jawaharlal Nehru University), argues that ‘consumers are not a distinct identity from local producers who will be displaced by cheaper imports. With the control of the Indian market by two multinational retail giants, we will see two distinct processes of deindustrialisation; one of local traders and the other of local producers’.

Parminder Jeet Singh  (IT for Change) talks about the implications of the Walmart-Flipkart deal in the context of the large amounts of data involved, as well how it will affect both customers and producers.

                                                             
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Walmart’s Takeover of Flipkart: Over 100 National Groups Highlight Dangers to Economy

PRESS RELEASE June 4, 2018 | New Delhi

New Delhi: Even as Walmart’s $16 billion takeover bid for e-commerce firm Flipkart, touted as the world’s largest e-commerce deal, awaits regulatory approval, over 100 national groups released an open statement in the capital today highlighting multifaceted dangers to the Indian economy and calling for its nullification. The statement asserts that the concentration of economic power over the e-commerce sector between two US MNCs (Amazon and Walmart) constitutes a potential duopoly in India, rendering them too powerful to be meaningfully regulated.

Apart from key associations of traders, like Bhartiya Udyog Vyapar Mandal, signatories to the statement include trade unions such as All India Central Council of Trade Unions (AICCTU), Centre of Indian Trade Unions (CITU) and the New Trade Union Initiative (NTUI) together representing millions of workers across the country. Peasant organisations such as All India Kisan Sabha (AIKS), Alliance for Sustainable and Holistic Agriculture (ASHA) and Indian Coordination Committee of Farmers movement (ICCFM) have also opposed the deal.

Mohan Gurnani, President of the Chamber of Associations of Maharashtra Industry and Trade (CAMIT) asserted that ‘the worst affected will be small brick-and-mortar retail stores accounting for over 90% of the Indian retail sector, SME manufacturers, small delivery companies and suppliers of goods including farmers whose margins will be ruthlessly squeezed. Walmart is well-known for its global supply chain, especially of cheap goods from China, which means local manufacturers and suppliers, will suffer deep hits’. Alongwith CAMIT, a number of traders’ organisations such as Chhattisgarh Chamber of Commerce & Industries, Grains Rice & Oils Merchants Association, Indian Chamber of Commerce and Vidarbha Chamber of Commerce & Industry will campaign against the Walmart takeover. Shyam Bihari Misra, President, Bhartiya Udyog Vyapar Mandal, says: ‘Government should consult traders and first frame policy for domestic e-commerce pending which the Walmart-Flipkart deal should be shelved. It is also not in line with government’s Make in India thrust.’

Challenging the assertion that consumers in India will gain with the availability of cheap imported goods, Prof Prabhat Patnaik, argued that ‘consumers are not a distinct identity from local producers who will be displaced by cheaper imports. With the control of the Indian market by two multinational retail giants, we will see two distinct processes of deindustrialisation; one of local traders and the other of local producers’.

President of the Free Software Movement of India (FSMI), Prabir Purkayastha, said that e-commerce companies now have integrated online and offline strategies and, ‘It should therefore be clear to everyone that allowing 100% FDI in e-retail in India is but a violation and a back-door entry of foreign players into multi-brand retail. He further pointed to the hypocrisy of the BJP as a political party that ‘a decade ago strongly opposed the entry of Walmart into India, and is now happy to welcome its far more powerful, digitally-enabled avatar’.

Parminder Jeet Singh from IT for Change said that e-commerce firms such as Amazon and now Walmart seek to own and control key data of all economic activity across sectors resulting in unassailable market power. ‘National policy or regulatory remits over them would then be as ineffective as they currently are over Google or Facebook. Manufacturers, suppliers and traders, producers and service providers, all become enslaved to digitally controlled platforms, working as per their parameters, but denied any rights or just returns’. This point was further elaborated by Amitava Guha from the Centre of Indian Trade Unions (CITU) who said that ‘Walmart has a long history of being anti trade unions, paying poverty wages and disregarding social security laws. In e-commerce, work will also be outsourced to couriers and other service providers, making it a long stretch to prove that they are workers. Further, even if Walmart and Amazon employ a few thousand more, they are unlikely to neutralise the massive employment loss associated with the collapse of both the formal and informal retail sector’.

Other signatories to the statement include networks such as the All India Peoples Science Network, National Alliance of Peoples Movements , National Fishworkers Forum and National Hawker Federation. The statement calls for a national debate involving all the affected constituencies, and an informed democratic decision based on it. The groups intend to submit the statement to the Government and Members of Parliament. Further plans include a national convention on the issue and taking the campaign on the rise of foreign corporate control over key sectors of the economy across the country. (ENDS)

For more information contact: Afsar Jafri – a.jafri[at]focusweb.org , Dharmendra Kumar – dkfordignity[at]gmail.com

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The Joint Action Committee Against Foreign Retail and E-commerce

The Joint Action Committee Against Foreign Retail and E-commerce was formed at a meeting among organisations of traders, farmers and workers, as well as some other organisations in New Delhi on 30th June, 2018. The meeting was called by the following organisations: Delhi Science Forum, Forum against FTAs, IT for Change, Focus on the Global South, India FDI Watch, National Working Group on Patent Laws and WTO, Bhartiya Udyog Vyapar Mandal, Confederation of All India Traders, Centre of Indian Trade Unions, Bhartiya Kisan Union, National Hawker Federation, National Fishworkers Forum, All India Kisan Sabha.

Earlier, a press conference was held on the issue of Walmart’s takeover of India’s largest e-commerce company, Flipkart, at the Indian Women’s Press Corps on 4th June, 2018, where the following speakers addressed the press.

Mohan Gurnani, President of the Chamber of Associations of Maharashtra Industry and Trade (CAMIT)

Shyam Bihari Misra, President, Bhartiya Udyog Vyapar Mandal

Prof. Prabhat Patnaik, Renowned economist and emeritus professor at Jawaharlal Nehru University

Prabir Purkayastha, President of the Free Software Movement of India (FSMI)

Parminder Jeet Singh, IT for Change

Amitava Guha, Centre of Indian Trade Unions (CITU)

Here are links to some videos of the press conference:

Shyam Bihari Misra: Indirect entry of Walmart through buying Flipkart is very dangerous for small traders in India

Prabhat Patnaik: Walmart Deal Would be a Colonial Style Deindustrialisation of the Economy

A public statement was issued against Walmart’s takeover of Flipkart which was supported by more than 100 organisations from across India, and many more individuals.

The statement can be accessed here.

A list of organisational supporters of the statement is here.

A list of individual supporters is here.

The Joint Action Committee Against Foreign Retail and E-commerce will be governed by a working group with members from major trade, workers, farmers and other such organisations. Representatives of the following organisations will be members of the Working Group.

Bhartiya Udyog Vyapar Mandal, Conference of All India Traders, All India Kisan Sabha, Bhartiya Kisan Union, Rashtriya Kisan Mahasangh, All India Trade Union Congress, Centre of Indian Trade Unions, Indian National Trade Union Congress, New Trade Union Initiative, National Hawker Federation, National Fishworkers Forum, Forum Against Free Trade Agreements, Hawkers Joint Action Committee, Confederation of Maharashtra Industry and Trade

This Working Group will be assisted by a Support Group consisting of members from:

Delhi Science Forum, Forum Against FTAs, Focus on Global South, Janpahal and IT for Change.

Dharmendra Kumar and Parminder Jeet Singh are the co-conveners of the Joint Action Committee.

The full membership of the Joint Action Committee is here.