Commerce retail law hits delay Cabinet approval for draft act to be postponed after protests from giants

Commerce Minister Chaiya Sasomsap said yesterday that the ministry would ensure that the draft of the Retail and Wholesale Business Act and related regulations create mutual understanding among all concerned parties, including giant and small retailers and consumers.

"The ministry had to postpone seeking Cabinet approval for the draft act as it is worried about con¬flict and strong opposition from giant retailers. The setting up of a special committee to reconsider the draft act should create fair practice and a better understanding among all involved," Chaiya said.

The committee should complete its task within two months to ensure the country's first Retail and Wholesale Business Act will be passed and become effective soon to protect small local retailers.

Modern traders have been expanding aggressively into small communities. The ministry wants to ensure that the new rules and laws will be effective enough to protect small retail operators as well as con¬sumers in the long run, he said.

Small retailers are disappointed by the collapse of the draft law before it could complete the ratifying process. Now, small retailers have only a 30percent share of the retail sector, compared with 70 per cent for the big players. The market share of small retailers will continue to drop unless there are restrictions on the expansion of giant retailers. Modern trade outlets have expanded to more than 6,500 outlets at present com¬pared with only 1,821 in 2001.

Yangyong Phuangrach, directorgeneral of the Internal Trade Department, said the committee would create a fair level playing field for large modern retailers and small local retailers.

The committee will include all concerned representatives. It will be responsible for three main tasks - reconsidering the draft act, creating measures to develop small local retailers' competitiveness with mod¬ern operators and reviewing retail guidelines to prevent giant retailers from unfair practices with suppliers and consumers.