: The Confederation of All India Traders (CAIT) has appealed to Union Commerce Minister Piyush Goyal to intervene and address the alleged violations of rules and regulations by quick commerce companies. In a letter to Goyal, CAIT highlighted the misuse of foreign direct investment (FDI) by platforms like Blinkit, Instamart, Zepto, and Swiggy, accusing them of disrupting India’s retail sector and jeopardizing the survival of small businesses.
CAIT had previously released a white paper on the issue, which was shared with Goyal and is now being sent to Chief Ministers across the country. The document outlines the adverse effects of quick commerce companies on the traditional retail market and emphasizes the need for regulatory intervention.
CAIT National General Secretary and MP Praveen Khandelwal alleged that these platforms misuse FDI by exerting undue control over suppliers, inventory, and pricing. He stated:"Their objective is to dominate the market by eliminating small grocery and retail stores, creating an uneven playing field that threatens the livelihood of over 3 crore kirana shops in India."
National Joint General Secretary Suresh Sonthalia echoed these concerns, accusing the companies of disregarding India’s FDI policies and violating the Competition Act. He noted:
"Quick commerce platforms are pushing small retailers out of the market. Their practices defy fair competition, making it nearly impossible for local businesses to survive."
CAIT claimed that quick commerce companies have attracted over ₹54,000 crores in FDI, which they argue has been used not for infrastructure or long-term assets but for controlling supply chains, offering deep discounts, and dominating the market through exclusive deals with select vendors.
The association also pointed out that these companies operate "dark stores" — small warehouses for quick deliveries — which they argue violate FDI norms prohibiting direct store setups.
Brijmohan Aggarwal of CAIT accused the platforms of breaching the Competition Act, 2002, by entering exclusive agreements, manipulating pricing, and withholding critical information from consumers. He emphasized the detrimental impact on independent retailers and consumer rights.
In response to these challenges, CAIT announced a two-day national business seminar in Delhi on January 6-7 to discuss the issue and strategize on safeguarding the interests of small retailers.
CAIT has called for stringent monitoring and accountability measures to ensure quick commerce companies adhere to Indian laws. The confederation is also planning to meet with Goyal along with a delegation of traders to further discuss the issue and propose solutions.
With concerns about the unchecked growth of quick commerce platforms mounting, CAIT’s appeal underscores the urgent need for regulatory oversight to protect India’s retail ecosystem from being overshadowed by foreign-funded enterprises.
CAIT demands action against Quick Commerce Companies
Monday, 30 December 2024 | PNS
| Jamshedpur
CAIT demands action against Quick Commerce Companies
Monday, 30 December 2024 | PNS | Jamshedpur