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AICPDF concern over Amazon, Flipkart quick commerce sector entry
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Friday, 10 July, 2026, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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The All-India Consumer Products Distributors Federation (AICPDF) has called for immediate government intervention over the proposed expansion of e-commerce giants Amazon and Flipkart into India's quick commerce sector. The federation has raised serious concerns regarding compliance by these e-commerce giants, with the nation's Foreign Direct Investment (FDI) rules.
According to a statement issued by the AICPDF, the rapid shift toward ultra-fast deliveries could destabilise India's traditional retail ecosystem, which supports 1.4 crore brick-and-mortar retailers and 4.5 lakh distributors.
The federation has formally requested the central government to form a high-level regulatory committee involving the Ministry of Finance and consumer protection authorities to comprehensively review the long-term economic impact of quick commerce on traditional supply chains.
"We request the Government to undertake a comprehensive policy review involving DPIIT, the Ministry of Commerce & Industry, the Ministry of Finance, competition authorities and consumer protection regulators," said Dr. P M Ganeshraam, chairman of AICPDF.
AICPDF argued that the law explicitly prohibits foreign-funded entities from owning or controlling inventory or directly influencing the sale prices of goods. The retail body added that the quick commerce blueprint, which relies on extensive networks of dark stores, localised fulfilment centres, platform-driven discounting, and algorithmic pricing, closely mirrors a prohibited inventory-based model.
"India welcomes investment and innovation, but innovation cannot come at the cost of violating the spirit of our laws or weakening millions of small businesses," said Dhairyashil Patil, national president of AICPDF.
The federation also expressed alarm over alleged sustained deep discounting and aggressive, loss-funded promotional campaigns. It warned that these practices create an uneven playing field, choking neighbourhood shops that lack access to massive pools of foreign venture capital.
"We respectfully urge the Government to thoroughly examine whether the proposed Quick Commerce operations of Amazon and Flipkart comply with these legal provisions before permitting any further expansion. A level playing field must be ensured for every retailer, distributor and entrepreneur in the country,” said Patil.
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