INDIA-PROTEST/RETAIL
SEPTEMBER 2 2007 17:28h
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Nearly 3,000 farmers joined hands in the northern Indian city of Lucknow in a protest against decision to close Western-style supermarkets.
Citing law and order problems, Uttar Pradesh state closed 10 new Reliance supermarkets 11 days ago following protests by small traders, who say that the new stores, part of plans to modernise the $350 billion fragmented retail sector, would hurt millions of shop owners.
The closures snowballed, with Reliance Industries Ltd <RELI.BO>, India's biggest private company, putting on hold the opening of hundreds of air-conditioned supermarkets across northern and eastern India.
Forming a human chain along the main thoroughfare of Lucknow, capital of Uttar Pradesh, thousands of farmers shouted "We want the reopening of all retail stores!"
The farmers say the Western-style supermarkets would enable them to make bigger profits by selling their produce to them. Small traders argue that the big supermarkets will drive them out of business.
New supermarkets have become a lightning rod for fears that India's rapid modernisation will destroy the livelihoods of millions of Indians who work in street markets or small shops.

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