CAIT Warns Against Quick Commerce Giants Threatening Indian Retail Sector

The Confederation of All India Traders (CAIT) has expressed serious concerns about alleged legal and regulatory violations by quick commerce platforms, including Blinkit, Zepto, and Swiggy Instamart. In a letter to Union Commerce Minister Piyush Goyal, CAIT highlighted the misuse of Foreign Direct Investment (FDI) to disrupt India’s retail ecosystem.

Last month, CAIT released a white paper detailing these issues, which has now been shared with Goyal and the Chief Ministers of all states.

Key Allegations by CAIT

FDI Misuse

CAIT national president BC Bhartia accused quick commerce companies of:

• Exploiting FDI funds worth over ₹54,000 crore to dominate the market.
• Manipulating suppliers and controlling inventory to dictate prices, undermining 30 million small retailers across India.
• Failing to invest in infrastructure or build long-term assets, instead using FDI to offset losses and offer steep discounts.

Unfair Practices

CAIT also raised concerns about:

• Exclusive agreements with select vendors, sidelining independent retailers and limiting competition.
• Operating dark stores, which Bhartia claims violate regulations prohibiting retail outlets for e-commerce players.
• Concealing vendor details from consumers, allegedly breaching the Competition Act and infringing on consumer rights.

Impact on Small Retailers

According to CAIT secretary general Praveen Khandelwal, these practices are aggressively destabilizing the retail sector, creating an uneven playing field that endangers the survival of traditional kirana stores.

Proposed Solutions and Next Steps

CAIT has called for:

1. Strict government oversight through consumer protection rules and e-commerce policies.
2. Immediate action to ensure quick commerce platforms comply with Indian laws.
3. Integration of quick commerce with local kirana stores, a proposal recently discussed by Minister Piyush Goyal.

Additionally, CAIT plans to:

• Send a trader delegation to meet with Piyush Goyal.
• Host a two-day national seminar in Delhi on January 6-7, focusing on challenges facing Indian trade.