As the German wholesale major, Metro Cash & Carry, is all set to open its first store in Kolkata, small traders of the city are determined to protest against the issuance of trading licence to the firm.

Accusing the state government of allowing foreign investors and companies to take control of local markets, chairman of the West Bengal Traders Association Mahesh Singhania said: “Metro Cash & Carry will harm the interest of lakhs of small and medium traders of West Bengal.”

According to Singhania, small traders believe that despite the MoU signed between the state government and the firm, as per which the company will sell commodities only to traders with wholesale trade licences, and in case of agri products to APMC licencees, the German firm will scrape innumerable self-employed traders who earn their livelihood through trading.

“We had asked the government to enforce the basic requirement of value added tax (VAT) licence for doing trade in the state. But the government did not pay any heed to our demand. We fear that there is much scope for grey marketing,” Singhania added.

One of the reasons that will be detrimental to the interest of small traders in the state is that the German firm will purchase the bulk of agricultural produce from the market, leaving very small stock for small traders.

Singhania said the most damaging trading practice of Metro Cash & Carry would be its acquisition of essential commodities directly from the producer.

“Since the firm will directly purchase commodities from the producer and supply them to the customers, it will affect the livelihood of middle men. Metro will not be able to provide work to all these self-employed individuals,” Singhania said.