After sellers association and swadeshi lobby led by the Swadesh Jagaran Manch, now Confederation of All India Traders (CAIT) has demanded a probe into the Walmart Flipkart deal.
The traders’ body has claimed that the proposed deal if fructifies, will trigger loss funding and predatory pricing culture in Indian e-commerce space.
Taking a strong stand against the deal, CAIT has also proposed to form a regulatory body saying that no such deal should be allowed until the formation of the authority body.
The advocate body also said that companies like Walmart take advantage of the loophole in FDI policy in India. As it failed to enter India in retail sector via FDI, now it has taken the e-commerce route which in future expected to harm the traders’ community.
Claiming of flouting FDI norms, Swadesh Jagaran Manch, an affiliation of the Rashtriya Swayamsevak Sangh (RSS) and other trade lobby groups have recently raised similar concerns.
All India Online Vendors’ Association (AIOVA), a group of 3500 online sellers, is another grudging party which has not been kept in the loop of any communication between Flipkart and Walmart. They are unsure what would be their future on the platform.
Besides, Retailers Association of India (RIA) had also raised the issue of FDI rules violations by the e-commerce marketplace players.
In March last year, the government announced to introduce 100 per cent FDI in online retail of goods and services under the marketplace model. Notably, DIPP had prohibited FDI in e-commerce companies that own inventories of goods and services and sell directly to consumers using online platforms.
The fate of Walmart Flipkart deal is yet to be decided. The buyout of stakes may take some more time to get materialised as the issues raised by the aforementioned bodies cannot be neglected as far as sellers and traders are concerned.
The development was reported by Business Standard via PTI.