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Flipkart may re-apply to get food retail business permit from the government

Now that the e-commerce giant's application has been rejected by the government, Flipkart may re-apply for food retail business permit.

Flipkart's application for the retail of food products in India has been rejected by the government. The e-commerce giant filed an application for this almost a year back, which has now been rejected due to regulatory issues. Flipkart had reportedly set up a new local entity - Flipkart Farmermart. With this, the brand wanted to source goods directly from farmers, assure a certain level of income to then and sell it through its platform.

Following which, the company had applied for requisite licenses from the government. At that particular time, Flipkart's Group CEO Kalyan Krishnamurthy said that the move is important to boost the Indian agriculture and food processing industry in India. Now that the firm's application has been given red light, it may re-apply for the permit, as per a spokesperson.

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"At Flipkart, we believe that technology and the innovation-driven marketplace can add significant value to our country's farmers and food processing sector by bringing value chain efficiency and transparency. This will further aid boosting farmers' income and transform Indian agriculture. "We are evaluating the department's response and intend to re-apply as we look to continue making a significant impact on small businesses and communities in India," the spokesperson said. This piece of information comes from PTI.

Interestingly, Amazon had received the government's nod for its $500 million investment proposal for retailing of food products in India in 2017. The grocery segment accounts for a significant portion of the unorganised retail segment in the country. Estimates suggest the market is worth over $200 billion in India. The grocery segment has witnessed significant growth amid the COVID-19 pandemic. Many people turned to e-commerce platforms like Grofers, BigBasket, and Amazon India for their grocery purchases during the lockdown.

Besides, its rival Amazon recently entered the vast online food delivery market in India, with the launch of Amazon Food at select pin codes in Bengaluru. "Customers have been telling us for some time that they would like to order prepared meals on Amazon in addition to shopping for all other essentials. This is particularly relevant in present times as they stay home safe. We also recognize that local businesses need all the help they can get," an Amazon spokesperson said.

- Written with PTI inputs

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Published:Mon, June 01, 2020 9:51pm

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Amazon India Flipkart Food apps Food delivery

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