TLI Staff
New Delhi: Pre-empting points of discussion between Prime Minister Narendra Modi and Amazon top boss Jeff Bezos during the latter’s meeting on January 15, local traders’ body Confederation of All India Traders (CAIT) has sought a hearing with the PM before Bezos comes calling.
The traders’ group led by its national secretary general Praveen Khandelwal believes that Amazon Global CEO Bezos would “shield his company’s unfair business activities in the e-commerce and justify violation of Indian FDI guidelines.”
“In this context, we shall request you that as a matter of principle of natural justice, an opportunity may be given to a delegation of CAIT for a meeting with your good self prior to your meeting with Amazon CEO so that we can place our issues for your kind consideration and to apprise you with the factual position,” Khandelwal has written to PM Modi.
Claiming that the predatory pricing of e-commerce companies like Amazon and Flipkart has forced thousands of retail shops to close down, the CAIT has been lobbying with the government to take action against the e-commerce giants.
The CAIT has also alleged that the e-commerce companies have been causing huge revenue loss to the government by artificially lowering the price of products for sale on their digital platforms. Its office bearers have given multiple representations to Ministry of Commerce and sought action against the companies.
“It is a matter of grave concern that with malpractices of e-commerce companies prominently Amazon and Flipkart which have greatly hurt the business of small traders across country. Their collusion with brand companies and banks has compelled the closure of thousands of small traders dealing in kirana shops, mobile, electronics, electrical items, fashion apparels, readymade garments etc,” the CAIT has said in its letter.
The local businesses have repeatedly complained of e-commerce companies selling their products at a discount ranging from 5 per cent to 80 per cent thus outwitting the mom-and-pop stores.
With the expansion of broadband connections in the country and access to smart phones, more and more people prefer to order goods online rather than visiting the neighbourhood shops. The trend has impacted the local stores and, in many cases, forced them to shut shops.
The Delhi-based CAIT has maintained that it is not against e-commerce but wants level-playing field with the bigger digital players.