Bangkok  - In an effort to fight back against the growing dominance of foreign mega-retailers such as Carrefour and TESCO, some 500 Thai greengrocers on Saturday formed a "Market Assembly of Thailand."

The objective of the assembly was to create a "cluster" of wet- market operators to boost their competitiveness against "major retail businesses which are threatening traditional business in Thailand," said Internal Trade Department director-general Yanyong Phuangrach.

The government department will advise the assembly on sources of inexpensive goods, said the state-run Thai News Agency (TNA).

The increasing share of foreign retailers such as Carrefour and TESCO has turned into a political issue over the past decade as these mega-stores have gained a growing segment of the domestic market by offering air-conditioned venues with competitively priced goods due to the bulk purchases they can engage in.

"So-called mom-and-pop businesses have been significantly eroded, and are now in decline," said Yanyong, warning that the country's traditional wet markets could be heading the same way.

According to statistics compiled by the Internal Trade Department, there are more than 6,000 retail shops and markets nationwide, of which 2,847 are "wet markets," or the outdoor fresh markets that used to characterize the retail trade in Thailand.

Wet market operators earn between 50-60 billion baht (1.6 to 1.9 billion dollars) annually, out of the national total of 1.2 trillion baht (38 billion). (dpa)