Anti Wal-Mart activist Wade Rathke, chief organiser of Association of Community Organisations for Reform Now, is in India to protest against the entry of big retailers into India. He spoke to Business Standard about his campaign. Excerpts:

Why are you protesting against big retailers' entry into India?

Large-scale retailers had a devastating affect on small shopkeepers, workers, farmers and consumers in developing and developed countries. We are working against the relaxation of foreign direct investment without any protection to smaller communities. In Thailand, due to tremendous easing of foreign direct investment norms, 60,000 small traders were forced to shut shop. We fear the same will happen in India if big retailers come here.

What is your take on Wal-Mart's claims on lower prices for Indian consumers?

Their business model in developing countries is upscale retailing. In India, they are not talking about lower prices. In China also, they are targeting high-end users. So their claims are not valid in India.

There are all possibilities of Wal-Mart sourcing Chinese products for Indian operations since they are the back-end partner of the Bharti group. They are sourcing goods worth $12 billion from China and while just $2 billion worth goods are being sourced from India. I do not know who is negotiating the deal with them in India. They should be asked to source more from India before allowing them here.

What do you have to say to Wal-Mart's claims that they will improve the prospects of Indian farmers through their efficient supply chain?

We want to know how they will do it. They have killed the domestic market for fresh produce in the US. Now, apples come from the Philippines and oranges from Mexico in the US. What is the guarantee that they will not import tea from Sri Lanka or Bangladesh, instead of sourcing it from India.

What impact has Wal-Mart had on the labour practices in places it operates in?

In all the countries where it has operations, the impact on labour practices had been very negative. In Mexico and Argentina they have exploited workers by paying low wages, reduced employee benefits and enforced contractual employment.

How will you mobilise public opinion against Wal-Mart's entry here?

We are actively backing an FDI watch campaign, which is mobilising hawkers, labour unions, shopkeepers, farmers and small communities. We have already started mobilising public opinion against the entry of big retailers and it is having an impact. We are very optimistic about any objective study from the government on the impact of big retailers on the smaller communities.

For more, visit www.waderathke.com