COVID-19 lockdown 3.0: Central guidelines unclear, confusion prevails

New Delhi: The union government's guidelines for the third phase of the nationwide lock down from May 4-17 in the aftermath of the COVID-19 outbreak has triggered confusion, with retailers seeking more clarity from authorities across the country.

The trader associations have sought more clarity from local authorities over what constitutes a neighbourhood and standalone shop, and what differentiates them from those in market place.

The Centre has allowed all standalone (single) shops, neighbourhood (colony) shops and shops in residential complexes to open in urban areas, without any distinction of essential and non-essential. In rural areas all shops, excepts malls, are permitted to open without any distinction of essential and non-essential but social distancing has to be maintained in all cases.

E-commerce activities, in the red zones, are permitted only in respect of essential goods.

Under the MHA guidelines, malls will continue to remain shut in all zones.

In red zone all malls, market/shopping complexes and markets will remain closed in urban areas, which are within limits of municipal corporations and municipalities. However, shops selling essential goods in markets and market complexes are allowed.

In green zones there are no such restrictions for marketplaces, neighbourhood and standalone shops.

Shops are being allowed to open from 7am to 7pm.

No major changes in Kerala

In Kerala, state government has taken a stricter approach while announcing the revised lockdown guidelines compared to Centre's order. The state has not changed much of the lockdown measures in zones other than in green.

According to Chief Minister Pinarayi Vijayan, theatres, malls, salons, spas and beauty parlours will remain shut in all zones. However, shops selling non-essential goods are allowed to operate in green zones. In orange and red zones, only the shops selling essentials will be allowed to function.

Though restaurants will remain shut in all zones, takeaway counters are allowed in zones other than in containment areas. Liquor outlets will also remain closed.

The tricky part is that the government, while announcing the new guidelines, advised the people not to go out for non-essential purposes. The government has banned public transportation in all zones. It has also restricted number of passengers in private vehicles and taxies in all zones.

Banks and other financial institutions are also advised to stick to the existing norms.

Only three districts – Alappuzha, Ernakulam and Thrissur – are classified as green zones in Kerala. Kannur and Kottayam are in red zones and the 9 other districts are orange zones.

Confusion prevails

On Sunday, Retailers Association of India (RAI) said it will have to be seen how it works out at the ground as there is confusion, and many states are yet to come up with guidelines to follow the Centre's decision. It has already stated that what constitutes market places could be misinterpreted.

Similarly, Confederation of All India Traders (CAIT) also claimed they will be in a "dilemma" as there is confusion over "what constitutes a neighbourhood shop and a standalone shop", while organised retailers such as Future Group and V-Mart Retail said they are also seeking permissions from local authorities.

"Some parts of the businesses will reopen. What we see is that there is the possibility of opening of some standalone stores...We will open wherever we can and we will talk to the local authorities to open. We will have to see how it works out.

"In any case individual states will have to come out with clear guidelines. While some states have come out with the guidelines but they are the same as what Centre has said. I think the states are also confused and they are printing the same thing that Centre is sending," RAI CEO Kumar Rajagopalan told PTI.

Expressing similar concerns, CAIT Secretary General Praveen Khandelwal said, "The traders will be in a dilemma".

He asserted that the "clarification should come from the right quarters. Not only the Centre, it is the duty of the state governments to issue that clarification because most of the issues are under the domain of the state governments, the law enforcement authorities also function as per their directives".

National General Secretary of the Federation of All India Vyapar Mandal, V K Bansal said, "The biggest problem with the guidelines is that it all depends on the states. The states frame their own policies and do not want to take any responsibility. The Centre wants relaxation but states are restrictive."

Big Bazaar, V-Mart Retail to open in green/orange zones

According to leading retailer Future group, the company would now start retailing other than non-essential and food items wherever allowed after the new notification.

"Inside Big Bazar, we would be now able to sell not just food and essentials only but also other items as crockery, kitchenware and general merchandise. Even at Big Bazaar, at certain places we would start selling other products apart from food," said a Future group official.

According to another Future group official, most of its big format stores like Big Bazaar are in malls, which have been kept closed even during the second phase of the lockdown.

Around 80 per cent stores of Big Bazaar are operational with several restrictions such as timing, number of visiting and retailing activities limited only to essential items, the official said.

Value fashion and lifestyle products retailer V-Mart Retail also said it is gearing up to open stores in the green and orange zone but reiterated that there is a need for clarification on the difference between malls and standalone stores, specially in small towns.

"We have around 62 stores are in green zone and 98 are in orange, where there are chances that the stores would open. We are in talks with the local administration to allow the stores to open," V-Mart Retail Chairman and MD Lalit Agarwal said.

E-commerce cos gear up for shipping non-essentials

E-commerce companies are geared up to start shipping non-essential items to customers in orange and green zones from Monday, but sales could be impacted as metros and many large cities are in red zones.

Various cities like Bengaluru, Ahmedabad and Pune have been classified under red zones.

According to industry executives, e-commerce companies like Amazon India and Walmart-backed Flipkart have been engaging closely with sellers to help them prepare for starting shipment of non-essential products as the third phase of lockdown comes into effect.

Under the latest rules, e-commerce activities in red zones, which cover large cities like Delhi, Mumbai, Bengaluru, Pune and Hyderabad are permitted only for essential goods during the third phase of lockdown that ends on May 17.

A senior industry executive, who did not wish to be named, said e-commerce companies that follow the marketplace model (like Amazon India, Flipkart and Snapdeal) could face some challenge as many of their sellers are either located or have their warehouses in red zones.

The home ministry guidelines remain unclear on operations of these marketplace sellers of non-essential products, who are in red zones. So, they are dependent on how local authorities issue their guidelines, he said.

E-commerce platforms could also see slow momentum for non-essential products given that metros and cities like Bengaluru, Ahmedabad and Pune continue to be red zones where only essentials are allowed to be delivered.

(With PTI inputs)