Flipkart applied for a Food Retail License aiming its new FarmerMart purpose. The e-commerce platform is keen to invest around ₹2.500 crores into this business. The plan was made last year and they applied for the License at the beginning of this year.
As per the source, the Flipkart’s application doesn’t go with the current FDI guideline fully. For that, the Department for Promotion of Industry and Internal Trade (DPIIT) send a letter to Flipkart, last week, mentioning the application rejection.
Flipkart authority is evaluating the issues and faults. Later, they are going to re-apply for the same.
In one of the Flipkart’s spokespersons’ word, “At Flipkart, we believe that technology and innovation driven marketplace can add significant value to our country’s farmers and food processing sector by bringing value chain efficiency and transparency. This will further aid in boosting farmers’ income and transform Indian agriculture.“
He also added, “We are evaluating the department’s response and intend to re-apply as we look to continue making a significant impact on small businesses and communities in India.”
Flipkart’s biggest competitor in India, Amazon got its Food Retail License in 2017. Now, by entering this sector Flipkart wants to give a head to head challenge to the opponent. Obviously, there are other primary purposes for this step too.
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