Bangalore traders call off strike

By Habib Beary In Bangalore, India

Metro wants to introduce more efficient distribution methods

Hundreds of traders and shopkeepers in the southern Indian city of Bangalore have called off their strike against a German retail giant.

They had been protesting against the launch of a wholesale outlet owned by Metro Cash and Carry (MCC).

A spokesperson for the protesting wholesale traders said the action was called off following an assurance by the local government to look into their grievances.

Hundreds of traders had been on an indefinite strike from Monday - the day Metro opened.

The multinational is accused of violating normal trading practices by selling agricultural products and luring retail buyers by lowering prices.

The Bangalore store is the first one introduced by Metro in India.

Talks held

The traders had downed shutters at the main marketing yard, and also demanded Metro's licence should be cancelled by the government.

Agricultural Marketing Minister Patil Sasnur said the government would hold talks with both the protesting traders and Metro to sort out the issues amicably.

The Metro group plans many more stores across India, with a second one set to open in Bangalore.

Police provided security for Monday's inauguration of the outlet, said to be one of the biggest shops in India.

Business model

The traders' protest has the support of the Swadesi Jagran Manch, an organisation that is fighting against opening up of the Indian economy to multinational corporations.

Metro has invested more than $40m in the Bangalore outlet, but has been accused of bringing down prices to capture the retail market.

The company says it can offer goods at lower prices because of its superior business model.

It also wants to introduce what it says are more efficient distribution methods.