Allowing inventory to e-commerce companies will distort retail trade of India completely: CAIT

New Delhi, July 6 (KNN) Reacting to news reports that the Government is considering to allow e-commerce companies to hold inventory and allow them to make sales directly to consumers, traders’ apex body CAIT has said the move will distort retail trade of India completely.

Praveen Khandelwal, Secretary General, Confederation of All India Traders (CAIT) said, “If this move is correct, then it will distort retail trade of India completely and will be nothing less than allowing FDI in retail trade which will be contrary to the electoral promise of BJP.”

Already the e-commerce business in India is greatly vitiated by mal practices adopted by e-commerce players, said the traders’ body.

The e-commerce companies are obliged to work only as a technology platform where vendors can sell their products online, pointed CAIT adding that if e-commerce companies are allowed to hold inventory then who will purchase goods from vendors.

It is like surrendering the market to FDI backed e-commerce companies which will be against the interest to offline trade, online vendors & economy, said CAIT.

The Government should desist such move or else prepared to face strong opposition from retail traders of the Country, CAIT said.

The CAIT also opposed any idea of allowing partial inventory saying, “What is partial inventory. Either there is inventory or no inventory. The term partial inventory is a sinister design of MNCs and FDI backed e-commerce company to circumvent the law and rules. We strongly reject any such term,” said Khandelwal.

According to media report, a panel headed by Anup Wadhawan, officer on special duty, Ministry of Commerce and Industry, had met officials from leading e-commerce companies on Wednesday, to know their thoughts for a national policy on e-commerce. The panel told the delegates that a limited inventory rule may be introduced, which would also help the government’s Make in India policy.

At present, online retail firms such as Amazon, Flipkart, Snapdeal, to name a few, follow a marketplace model, wherein they merely help sellers and buyers connect with each other by providing a technology platform.