Draft law being revised to help small retailers

The ministry reported that many small local retailers had closed down as a result of the aggressive expansion of giant retail outlets.

Siripol Yodmuangcharoen, permanent secretary at the Commerce Ministry, said the ministry was revising the draft act after the law had failed to pass during the tenure of many governments.

"We will try to push the law through during the term of the current government to assure  small retailers will not totally disappear from the scene,as well as to ensure fair regulations for large and small retailers," he said.

Jit Siratranont, deputy secretary general to the Thai Chamber of Commerce, said that giant retail shops had increased sharply in the past seven years from only 1,821 outlets in 2001 to more than 6,505 outlets now.

Income from the retail business industry also rose significantly, to Bt1.4 trillion in 2005. An effective law was needed to control the retail business as it had a strong influence on the country's economic growth, he said.

Retail business accounted for 18 per cent of the country's gross domestic product.

Without the law, retail business could fall into the hands of a small group of enterprises and that

could harm consumers and the

economy.

Jit said that this government must accelerate its revision process as much time had been wasted awaiting regulations to control the retail industry.

Meanwhile, the Internal Trade Department has asked steel-makers to freeze their prices for steel used to make cans until next month, to ensure canned-food products would not be affected by rising costs.

The cost of steel for cans has increased recently by 13 per cent from Bt52,000 to Bt59,000 per tonne.

Yanyong Phuangrach, director-general of the department, said maintaining the price of steel for can production would ensure that canned-food producers would not approach the ministry seeking to increase retail prices, which would directly hurt consumers.