The budget has come with recommendations which will positively impact the retail sector. An increase in the personal income tax limit will create disposable income in the hands of the consumer while the single window clearance facility for smaller businesses will be an added impetus for the industry.
The budget’s emphasis on improving rural internet and broadband connectivity will enable an increased market size for retailers and improve overall consumption story for the country.
Food Safety and Standards Authority (FSSA) regulations required the Food Business Operators (FBOs) to file annual returns within 31st May of every year for the period April 1st to March 31st. The regulation further adds that a separate return shall be filed for every license issued under the Regulations, irrespective of whether the same Food Business Operator holds more than one license and any delay in filing return beyond 31st May of each year shall attract a penalty of Rs 100 per day of delay.
RAI had submitted a representation to Food Safety and Standards Authority of India (FSSAI) contending that retailers should be excluded from this regulation as they sell hundreds of food SKUs bought from numerous vendors across large geographical area and the process of filing a separate return for each license would be tedious. FSSAI agreed to our request and verbally confirmed that retailers, traders, restaurants and distributors need not comply with the said regulation.
Pune Municipal Corporation (PMC) had issued a notification that plastic carry bags are required to be charged at the rate of Rs. 15 per bag irrespective of the size. RAI submitted a representation to PMC contending that Rs. 15 is an exorbitant rate and way above Rs.2 - Rs. 5 per plastic bag as given by other Municipal Corporations.
Charging this high amount will attract resistance from customers and retailers may face a drop in the foot fall. Moreover, it involves many operational and implementation challenges for the retailers as the plastic bag charges differ for every Municipal Corporation limit. In this regard, RAI representatives met the PMC Commissioner. The commissioner suggested to express our concern to the Mayor of Pune. The Mayor’s office, if convinced, will direct the PMC to reduce the plastic bag rate
Food Safety and Standards Authority of India (FSSAI) had issued a notification stating that FSSAI logo and license number of the Food Business Operator’s brand should be displayed on the label of the food package.
The time period for complying with this is 1st July, 2014. Please find the notification to this effect. High resolution FSSAI logo can be downloaded from the FSSAI website: http://www.fssai.gov.in.
RAI submitted a representation to the Directorate General of Foreign contending that shipments which are sold online using online payment options should be given an option to export the shipment through express mode instead of going through the tedious shipping bill process.
This will ensure lower transaction cost for SMEs and also fulfill the commitment of delivery on time. Please find the representation submitted here.
The Department of Industrial Policy and Promotion (DIPP) had come out with a discussion paper on allowing FDI in B2C e-commerce to initiate discussion. DIPP had invited views on the said subject from all concerned stakeholders including RAI.
Please find RAI’s views on the discussion paper here.
Food Safety and Standards Authority of India vide their Advisory dated 4th February, 2014 has extended the timeline up to 4th August 2014 for the Food Business Operators seeking conversion/renewal of existing License/Registration under the repealed Orders by invoking the sub-regulation 2.1.2 of FSS (Licensing & Registration of Food Business) Regulations, 2011.
Please find the advisory here.
The Himachal Pradesh (HP) High Court has imposed a ban on sale of potato chips, wafers and all junk food items packaged in plastic and non-biodegradable material from January 26 2014. HP High Court also directed the state government to ensure that edible oils/fats should be packed in tin containers and not plastic bottles or pouches.
We believe that if this judgment is allowed to stand, then all the states may start bringing such type of legislations and will adversely impact the food & retail industry . Retailers Association of India filed a SLP in Hon'ble Supreme Court , against the order passed by HP High Court.
RAI has submitted a representation to the state governments of Assam and Tripura contending to grant members of Retailers Association of India license to operate stores 365 days a year. We represented that RAI members constitute organized retailers and that retail sector is the highest provider of employment.
Operating stores 365 days a year will employ 20% extra from the workforce. Please find the representation submitted to the state government of Tripura here.
As required by labour laws, all labour registers need to be maintained in physical form separately. Given the large number of employees in stores and back-end infrastructure like warehouses, it becomes difficult for retailers to maintain such registers separately in physical form.
We submitted a representation to the Labour Ministry of Maharashtra proposing that these registers be consolidated into one register which can be electronically maintained in a soft copy format as this would allow the employer to comply with such provisions in an accurate and environment-friendly manner. Please find the representation here.
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