• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Govt rejects Flipkart's proposal for entering food retail sector

By PTI
|

New Delhi, June 01: The Department for Promotion of Industry and Internal Trade (DPIIT) has rejected Walmart-backed Flipkart’s proposal seeking approval for entry to the food retail sector citing a regulatory issue, an official said on Monday.

Govt rejects Flipkarts proposal for entering food retail sector

The government permits 100 per cent foreign direct investment in food retail for food produced and manufactured in India. Last year, the company had set up a new local entity - Flipkart Farmermart - to focus on food retail in India, and had applied for requisite licences from the government. Flipkart Group CEO Kalyan Krishnamurthy, at that time had said that the move an important part of the company's efforts to boost Indian agriculture as well as food processing industry in the country. "Yes, the department has rejected the proposal," the government official said.

    Amazon, Flipkart urge Govt to allow sale of non-essential goods durig lockdown | Oneindia News

    Coronavirus outbreak: COVID-19 tally rises above 1.90 lakh in India; 230 deaths in 24 hours

    Commenting on the development, a company spokesperson said that Flipkart intends to re-apply for the permit. “At Flipkart, we believe that technology and 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 significant impact on small businesses and communities in India," the spokesperson said.

    Interestingly, Amazon had received the government's nod for its USD 500 million investment proposal for retailing of food products in India in 2017. Grocery segment accounts for a significant portion of the unorganised retail segment in the country. Estimates suggest the market to be worth over USD 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 as they looked at maintaining social distance. Market watchers feel that grocery segment would continue to scale in the coming months in view of the COVID-19 situation.

    For Daily Alerts
    Get Instant News Updates
    Enable
    x
    Notification Settings X
    Time Settings
    Done
    Clear Notification X
    Do you want to clear all the notifications from your inbox?
    Settings X
    X
    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more