AICPDF, which represents thousands of FMCG retailers in the country, wrote in the official release that while these platforms are innovative, they are causing significant disruption to the traditional retail sector and FMCG distribution network in India.
Their main problem is that these platforms are increasingly becoming direct distributors for large consumer goods companies, which they believe is marginalizing traditional distributors and threatening the existence of small retailers.
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In the letter, AICPDF also claimed that there are concerns about compliance with FDI regulations. “The AICPDF suspects that these platforms blur the lines between the marketplace model and the inventory-based model and may violate existing FDI norms,” the letter said.
Earlier, the minister had recently expressed concern about the rapid growth of e-commerce in the country, which could cause disruption for small traders.
“The livelihoods of millions of small retailers and wholesalers are at stake due to the rapid and unchecked growth of quick commerce platforms. It is critical that the government intervenes to ensure that the growth of e-commerce in India is balanced and does not come at the expense of traditional retail,” said Dhairyashil Patil, National President, AICPDF.
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The AICPDF has asked Goyal to look into implementing safeguards for small retailers and traditional distributors to prevent monopolistic practices.
The association has also proposed initiating a dialogue between all stakeholders, including representatives of the retail sector, FMCG companies and quick commerce platforms, to establish fair and equitable business practices.
