Lawstreet Journal

Flipkart's Food Retail Licence Proposal Rejected, Company Prepares for Re-Application

Lawstreet Journal 3 Jun 2020 1:37am

Image courtesy: Lawstreet Journal Business Flipkart's Food Retail Licence Proposal Rejected, Company Prepares for Re-Application

The government has dismissed Flipkart's application for a food retail permit.The organization however said that it plans to reapply after assessment. 

The Department for Promotion of Industry and Internal Trade (DPIIT) sent a letter to the organization a week ago expressing that the application has not gone through, sources said. 

A source at DPIIT said Flipkart's application didn't fit into the current FDI rules.

Flipkart had applied for a food retail permit not long ago after it had set up a different entity for the purpose called Flipkart FarmerMart before the end of last year. Reports propose Flipkart was hoping to put Rs 2,500 crore into the food retail business.

A company spokesperson in a statement said:

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 in 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.

Flipkart's rival Amazon had received a food retail licence in 2017 after the government had allowed 100 percent FDI in food retail.

As of now, the legislature permits 100 percent FDI into the food retail. A comparative activity has been attempted by Amazon's retail vertical, Amazon Retail India Pvt. Ltd subsequent to getting an administration gesture in 2017. Up until this point, Amazon has put about $500 million in its food retail initiative and… Continue Reading...

Tagged: Flipkart  
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