New Delhi: The Confederation of All India Traders (CAIT) has written to Union Commerce Minister Piyush Goyal, raising serious concerns about quick commerce platforms and their impact on India’s retail sector. CAIT’s national president, BC Bhartia, accused companies like Blinkit, Zepto, and Swiggy Instamart of misusing Foreign Direct Investment (FDI) funds to gain an unfair advantage, threatening the survival of millions of small retailers across the country.
In the letter, CAIT claims these platforms are violating Indian laws by using FDI funds to manipulate suppliers, control inventory, and set prices that undercut small kirana stores. Bhartia warns that this destabilizes the retail sector, creating an uneven playing field for India’s 30 million small retailers.
Praveen Khandelwal, CAIT’s secretary general, criticized quick commerce platforms for bypassing local retailers and violating FDI regulations. He also pointed to recent remarks from Commerce Minister Piyush Goyal, who expressed concerns and suggested integrating these platforms with local kirana stores. Khandelwal revealed that CAIT plans to meet with Goyal to further address these issues.
Allegations of FDI Misuse and Lack of Investment
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CAIT also alleged that quick commerce companies, which have received over Rs 54,000 crore in FDI, have not invested in infrastructure or long-term assets. Instead, the funds are being used to offset losses, dominate supply chains, and offer steep discounts, which Bhartia claims unfairly benefits large firms over small competitors. The organization also raised concerns about the increasing use of “dark stores” that violate retail outlet regulations and exclusive vendor agreements that disadvantage independent retailers.
Threat to Small Retailers
CAIT warns that the unchecked rise of foreign-funded quick commerce platforms is undermining fair competition and violating consumer rights. The organization has called for stricter government oversight and enforcement of existing consumer protection and e-commerce regulations to safeguard small retailers.
Upcoming National Seminar
To address these concerns, CAIT will host a two-day national seminar in Delhi on January 6-7. The seminar aims to bring together stakeholders to discuss the challenges facing India’s retail sector and explore solutions to protect the interests of small traders.
As tensions rise between traditional retailers and quick commerce companies, CAIT’s efforts to highlight these issues are likely to prompt further policy action to preserve India’s retail ecosystem.
