Traditional Retailers Threatened by Uncontrolled Growth of Fast Trading Platforms: AICPDF

The All India Consumer Products Distributors Federation (AICPDF) has formally written to Union Commerce and Industry Minister Piyush Goyal, expressing concerns over the “unchecked expansion” of fast-track platforms, soon after the minister criticised e-commerce firms for their impact on small retailers.

In its letter, the industry body highlighted how fast-paced marketplaces such as Blinkit, Zepto and Instamart are challenging traditional retail and FMCG distribution networks. It acknowledged the importance of innovation but warned against rapid, unregulated growth that disrupts the retail ecosystem.

In particular, the AICPDF cited the decline in the number of small mom-and-pop stores and changes in the distribution of fast-moving consumer goods (FMCG) as large companies appoint these platforms as direct distributors, bypassing the traditional ones. The federation also raised serious concerns about potential violations of Indian foreign direct investment norms by these platforms, leading to an unlevel playing field and threatening the livelihood of small retailers.

On August 21, Minister Goyal had said that e-commerce platforms were disadvantaging small retailers through predatory pricing and discounting, calling for a reassessment of the sector.

(Based on information from the agency.)