Parliamentary Panel seeks CCI response on safeguarding small retailers amid quick commerce dominance

The parliamentary standing committee has directed the Competition Commission of India (CCI) to submit its responses on the steps taken to safeguard the interest of small retailers.

This is against the backdrop of CCI's allegation that deep discount practices and other unfair trade practices by big players have severely affected small Kirana stores.

The committee has also sought inputs from the CCI on the proposed digital competition law and solutions to address the issues related to anti-competitive practices, according to a report by Business Standard. Additionally, it has CCI's response on the regulatory oversight to manage the growth of quick commerce firms.

Quick commerce surges to dominate e-grocery market, accounting for 70-75% of orders: Report

Citing sources, the report said that the committee is also taking a comprehensive view of the e-commerce sector as well to protect the interest of retailers who make up 20% of the population.

Separately, the All India Consumer Products Distributors Federation (ACPDF) has filed several complaints with CCI against quick commerce players like Blinkit, Zepto and Swiggy Instamart.

The industry body that represents FMCG distributors in India alleged that quick commerce companies were indulging in practices of deep discounts and exclusive supply and distribution agreements, thereby engaging in unfair pricing and affecting the competition in the market for selling consumer goods.

FMCG cos dumping near-expiry products through quick-commerce: AICPDF

Besides, the AICPDG has raised major concerns over FMCG firms dumping near-expiry products and non-movable stocks, often disguised through hefty discounts, through quick-commerce platforms.

AICPDF has claimed that an estimated two lakh kirana stores have shut down in the last year because of the rapid expansion of quick commerce along with the economic slowdown.