Veteran e-commerce company Flipkart cannot enter food retail business at present. The government has rejected Flipkart’s application for food retail license. Last week, the Department for Promotion of Industry and Internal Trade (DPIIT) sent a letter to the company stating that the application was canceled. According to DPIIT, Flipkart’s application did not fit the existing guidelines of Foreign Direct Investment (FDI). After the cancellation of the application, the company can now apply again by correcting the application. Regarding this business of the company, a Flipkart spokesperson said that in Flipkart we rely on market place based on technology and innovation.
This will increase the value of the country’s farmers and strengthen the value chain and increase transparency. We will make necessary changes keeping in mind the opinion of the department and apply again. The company had sent applications to DPIIT early this year for the formation of a venture, after which the company was in the hope of getting government approval. For this, a new company was registered in the name of Flipkart Farmmart. According to the report, the company plans to invest Rs 2500 crore in its food retail business. Explain that customers in India spend about $ 500 billion annually on groceries.
Let us know that Flipkart’s rival Amazon got a food retail license in 2017 itself. At that time, the government had approved 100 percent FDI in food retail, which was taken advantage of by Amazon to get the license. Recently, Amazon has announced to start food delivery business. The company has introduced this service from parts of Bengaluru. Amazon India has been testing for the last few months to start its food delivery operation. Amazon’s main competition is against the major companies in this segment, Jamato and Swiggy.