CAIT alleges unfair trade practices against fast trading companies, ET Retail

CAIT releases white paper alleging unfair trade practices against fast trading companies

Trader’s trade body Confederation of All India Traders (CAIT) on Wednesday released a white paper raising serious concerns about the alleged practices of high-speed trading platforms such as Blinkit, Instamart, Zepto, Swiggy etc.

The trade body claims that high-speed trading platforms are undermining the foundations of India’s retail economy. CAIT urged regulators to intervene and ensure that fast trading platforms adhere to fair trading practices and protect the interests of small traders.

At the press conference, CAIT Secretary General Praveen Khandelwal condemned high-speed trading platforms for abusing foreign direct investment (FDI) rules to dominate suppliers, control inventories and finance predatory pricing.

According to the CAIT Secretary General, the strategies adopted by these platforms create an unfair playing field, making it virtually impossible for the 30 million kirana stores to compete with them.

“These platforms are aggressively pushing small retailers out of the market,” Khandelwal said

The White Paper alleges with examples how commercial companies are quick to violate India’s FDI policy and Competition Act. These violations, coupled with a lack of transparency, are hurting small businesses and disrupting the retail ecosystem, the trade association said.

Addressing the media in New Delhi, Khandelwal acknowledged Union Commerce Minister Piyush Goyal’s recent statements reflecting similar concerns and underlined that such unfair practices will not be tolerated by Quick Commerce platforms.

The White Paper claimed that high-speed trading platforms, backed by over Rs 54,000 crores of foreign direct investment, have not invested in creating infrastructure or long-term assets. Instead, they use FDI to subsidize operating losses, control supply chains and offer predatory discounts through a small group of preferred sellers.

These practices have allowed fast trading platforms to capture 25 to 30 percent of the market, which was once dominated by kirana stores, pushing many traditional retailers to the brink of closure.

The White Paper alleges multiple regulatory violations by Quick Commerce platforms, including limited market access, predatory pricing, lack of transparency and FEMA violations.

The White Paper also states that these platforms are also in breach of the Competition Act 2002. Their agreements with preferred sellers have limited competition in the marketplace and limited consumer choice.

CAIT urged immediate regulatory intervention by regulators and the government to hold these platforms accountable. If uncontrolled growth driven by foreign capital is allowed, it will pose a significant threat to India’s small retail ecosystem.

CAIT called on the government to enforce stricter supervision through the proposed Consumer Protection (E-Commerce) Rules and E-Commerce Policy and ensure that Quick Commerce platforms operate with greater responsibility while maintaining the integrity of India’s retail sector.