Traders allege violations by quick commerce firms in White Paper

The Confederation of All India Traders (CAIT) released a White Paper today, alleging significant regulatory violations by quick commerce (QC) platforms such as Blinkit, Instamart, Zepto and Swiggy. The CAIT accused these platforms of exploiting Foreign Direct Investment (FDI) to dominate suppliers, fund predatory pricing and marginalise India’s 30 million kirana stores.

“These platforms are aggressively pushing small retailers out of the market,” said CAIT Secretary General and Chandni Chowk MP Praveen Khandelwal at a press conference on Wednesday.

The White Paper highlights alleged violations of India’s FDI policies, Foreign Exchange Management Act guidelines and the Competition Act, 2002. It claims QC platforms, backed by over Rs 54,000 crore in the FDI, bypass regulations by controlling inventory through preferred sellers and offering deep discounts that harm traditional retailers.

“These practices have allowed QC platforms to capture 25-30 per cent of the retail market once dominated by kirana stores,” said CAIT National Chairman Brij Mohan Agrawal, calling for immediate regulatory action.

The paper outlines concerns such as restricted market access, lack of transparency and anti-competitive agreements. It accuses QC platforms of abusing their dominant position to control supply chains and manipulate pricing.

The CAIT also supported recent remarks by Union Commerce Minister Piyush Goyal, who criticised such unfair practices. “The minister’s emphasis on aligning QC platforms with traditional retail is a step in the right direction,” Khandelwal said.

Calling for stricter enforcement of e-commerce regulations, the CAIT warned that unchecked practices by QC platforms endanger the future of kirana stores and the retail ecosystem. “The government must ensure accountability to protect small traders,” Khandelwal added.

Protect small retailers

These platforms are aggressively pushing small retailers out of the market. The government must ensure accountability to protect small traders. — Praveen Khandelwal, BJP MP