Pointing to the 'dangers' in the opening up of retail sector to multi-nationals and big Indian companies, traders in Kerala are gearing up to launch an  agitation, if necessary an 'armed struggle,' to prevent their entry.

Expressing fears that entry of firms like Wal-Mart and Reliance [Get Quote] in the retail sector would shatter the state's economy, besides rendering thousands jobless, the Vyapari Vyavasayi Ekopana Samithi, a leading traders' body, says it will also result in sharp price hike of goods.

"We will not allow the retail shopping malls, being set up by the multi-nationals and big Indian companies in the state and have planned to go on a state-wide protest, including armed struggle, if necessary, from August 1," VVES state President T Naseeruddin told PTI.

Opposing foreign investment in the retail sector, he said 20 lakh people were directly employed in the sector in the state with another 60 lakh people dependent on them.

"While Wal-Mart is making every effort to enter the market, Reliance is ready to pump in about Rs 2,000 crore (Rs 20 billion)," he claimed, adding that this would press the panic button for those already employed in the field.

Urging the LDF government not to grant permission to big companies to set up malls in the state, Naseeruddin said the VVES had held district-level meetings to create awareness among the people.

"We are confident that the government will analyse the dangers lying ahead by allowing entry to MNCs in the sector," he added.

However, the VVES is not opposed to FDI in other sectors, as envisaged by the central government.

"There are specific areas where MNCs can invest without affecting our prospects. But allowing them in the retail  sector in a state like ours will shatter the economy and result in large-scale unemployment," Naseeruddin said.

The Samithi  is all set to work out its strategy vis-a-vis various forms of protests at its state convention here on July 29.

Stating that a majority of the samithi members are youth, 'who are prepared to go to any extent,' he said the government would do well to remember that those employed in the sector had availed huge bank loans and cannot be left in the lurch.

Meanwhile, Maoist groups like 'Porattam' and 'Janakeeya Vimochana Munnani' are reportedly planning to stage demonstrations across the state and are actively engaged in organising the people.