Indian small landowners fear arrival of supermarkets

Indian farmers' groups representing millions of small landowners vowed to oppose a move to allow in foreign supermarket chains because they fear becoming "slaves of the corporate sector".

Earlier this month, the Indian government gave the green light for global supermarket giants to enter the country's retail sector as part of a blitz of economic reforms intended to spur growth.

The government says the reform will increase farm incomes and it has been welcomed by the country's largest farmers' body, Bharatiya Kisan Sangh (BKS), as well as the cash crop and vegetable growers' associations.

But on Wednesday, seven groups who claim they represent 10 million small-farm owners said they opposed the move.

"Small and marginal farmers in USA have protested against Walmart's policies this year. If they are facing problems, then why are we rolling out the red carpet?" said Y. Singh from the International Farmers Alliance in New Delhi.

"We will be at the mercy of multinational companies to sell our produce, they will dictate terms and make us corporate slaves."

Companies such as Walmart, Tesco and Carrefour will be able to own up to 51 percent in Indian subsidiaries, allowing them into a previously protected but potentially hugely lucrative sector.

The decision has been fiercely opposed by the main opposition party, several regional political parties and shopkeepers on the grounds that it would destroy the livelihoods of small businesses.

About two-thirds of India's 1.2 billion population depend on farms for their incomes, according to government figures.

Courtesy: AFP