CAIT appeals to Commerce Minister Piyush Goyal over quick commerce issues

New Delhi: The Confederation of All India Traders (CAIT), representing over 70 million traders across India, has formally written to Union Commerce Minister Piyush Goyal, urging immediate action against what they describe as "unfair practices" by quick commerce companies.

CAIT's letter, coupled with a comprehensive white paper previously released on the subject, highlights the alleged misuse of foreign direct investment (FDI) by platforms such as Blinkit, Instamart, Zepto, and Swiggy. The traders' body accuses these firms of dominating suppliers, controlling inventory, and engaging in predatory pricing, which they argue is detrimental to India's traditional retail sector, particularly the 30 million Kirana stores.

BC Bhartia, CAIT's National President, stated, "These quick commerce companies are not only violating FDI policies but also flouting the Competition Act. They seem to have little regard for Indian laws and regulations." 

This comes at a time when quick commerce platforms have raised over Rs 54,000 crore through FDI, yet, according to CAIT, have not invested in infrastructure or long-term assets but instead used these funds to sustain deep discounts and control market dynamics.

CAIT Secretary General Praveen Khandelwal emphasised that the unchecked growth of these foreign-funded entities poses a significant threat to small retailers. He mentioned the recent remarks by Minister Goyal, where he suggested integrating quick commerce with local Kirana stores for last-mile deliveries, as a potential solution but stressed that this should not compromise the integrity of traditional retail.

The letter to Goyal also echoes similar concerns voiced by the All India Consumer Products Distributors Federation (AICPDF), which has accused quick commerce firms of becoming direct distributors for FMCG companies, thereby sidelining traditional distribution networks. This, they claim, threatens the livelihoods of small retailers and distributors across the nation.

In response, CAIT is planning a meeting with Minister Goyal to discuss these issues in detail and is organising a two-day national seminar in Delhi on January 6-7 to address these and other pressing trade matters. The organisation is also distributing its white paper, detailing the concerns, to all state chief ministers, seeking broader governmental intervention.