CAIT writes to Piyush Goyal to address quick commerce concerns

The Confederation of All India Traders (CAIT), a national organisation that represents the interests of Indian traders, has reached out to Union Commerce Minister Piyush Goyal, raising concerns over alleged legal and regulatory breaches by quick commerce companies.

In its letter, CAIT accused quick commerce platforms, including Blinkit, Zepto, and Swiggy Instamart, of misusing foreign investments to disrupt India’s retail ecosystem. Last month, CAIT unveiled a white paper addressing these concerns, which has now been shared with Goyal and the Chief Ministers of all states.

CAIT national president BC Bhartia has alleged that quick commerce platforms are misusing Foreign Direct Investment (FDI) funds to gain an unfair advantage in the retail sector. According to Bhartia, these companies manipulate suppliers, control inventory, and dictate prices to undercut small grocery stores. CAIT warned that such practices threaten the survival of over 30 million small retailers across India, creating an uneven playing field and pushing traditional kirana stores to the brink.

CAIT secretary general Praveen Khandelwal has slammed quick commerce companies, accusing them of aggressively sidelining small retailers. He alleged that these firms openly disregard FDI policies and violate provisions of the Competition Act, further destabilising the retail sector. Khandelwal also highlighted the Union Commerce Minister’s recent remarks on quick commerce, where he raised concerns and proposed integrating these platforms with local kirana stores. Khandelwal also revealed plans for a trader delegation to meet Goyal soon to address the issue. Additionally, CAIT is set to host a two-day national seminar in Delhi on January 6-7 to deliberate on this and other critical trade challenges.

Additionally, Bhartia has alleged that quick commerce companies have secured over Rs 54,000 crore through FDI but have neither invested in infrastructure or built long-term assets. Instead, he claimed, these funds have been used to offset business losses, dominate supply chains, and provide steep discounts via select vendors, actions he deemed unacceptable. Bhartia also criticised these platforms for operating numerous dark stores nationwide, arguing that this violates regulations prohibiting them from establishing retail outlets. He further accused quick commerce companies of striking exclusive agreements with select vendors, effectively sidelining independent retailers and stifling competition. He claimed that these platforms conceal vendor details from consumers, a practice that he argued breaches the Competition Act and infringes on consumer rights.

CAIT warned that the unchecked rise of foreign-funded quick commerce companies poses a serious threat to India’s small retail sector, as these firms manipulate prices and control inventory through one-sided agreements, undermining fair competition. The organisation called on the government to implement stringent oversight of these companies through existing consumer protection (e-commerce) rules and e-commerce policies. CAIT also demanded immediate action to ensure these platforms adhere to the country's laws and regulations.