MUMBAI: Walmart may have to face more hurdles for its proposed India retail foray. The Centre on Sunday refused to accept the US retail giant’s demand of reducing the 30% local sourcing to 15% in the immediate future.
“We find no immediate reason to reduce this percentage ,” said Union agriculture minister Sharad Pawar while interacting with media here on Sunday. According to sources, Walmart had pointed out that it could not meet the mandatory 30% sourcing norm and could procure only about 20% from small units and thus had asked to reduce it to 15%.
Walmart had apparently cited the reason that it could not meet the stipulated level of procurement required to open multi-brand stores in India. Walmart’s demand had come after the government diluted the contentious sourcing clause to allow foreign multibrand retailers to procure 30% of their products from small and medium enterprises only at the start of business.