Traders want the government to regulate online sales during the festive season
CAIT is planning a coordinated effort with other stakeholders in the economy to counter the losses incurred by the online e-commerce sales.
Festive season e-commerce discounts are giving retail traders sleepless nights and they are planning to reach out to the government to demand policy regulations in the matter.
The head of the Confederation of All India Traders (CAIT) has told Asiaville that they estimate a loss of around 30 per cent business this festive season if the government does not intervene in the matter.
“In the wake of upcoming festival season and the online portals declaring to organise festival sales having an element of deep discounts, the Confederation of All India Traders (CAIT) has decided to approach Union Commerce Minister Piyush Goyal and Finance Minister Nirmala Sitharaman to take immediate cognisance of this burning issue and stop such sales,” CAIT Secretary General Praveen Khandelwal told Asiaville.
CAIT has also questioned the validity of e-commerce portals holding sales.
“Sales can be organised only by the owners of inventory and these portals are market place and are allowed to provide only technology platform and can not undertake any sales or influence the prices as per Press Note No 2 of FDI policy 2016. E-commerce portals are also having warehouses in large numbers. When they are marketplace what is the need for them to keep warehouses. It shows that they are keeping stocks which via policy they can’t do,” CAIT National President BC Bhartia told Asiaville.
CAIT is planning a coordinated effort with other stakeholders in the economy to counter the losses incurred by the online e-commerce sales. CAIT is trying to bring transporters, SMEs, farmers, consumers, entrepreneurs, and hawkers together to urge the government to take immediate steps to thwart this year’s online sales.
“We have approached government several times on these e-commerce companies’ involvement in malpractices such as predatory pricing, deep discounting, and loss funding, creating an uneven level playing field in the market but there has been no relief. If needed CAIT will also take shelter of court to stop such festive sales which are in violation of the policy,” Khandelwal told Asiaville.
CAIT is in the process of preparing a ‘White Paper’ in order to highlight all the instances of deep discounting by e-commerce companies and will submit the same to the government soon. On previous occasions CAIT has urged the government to roll out a draft of e-commerce policies as they will become a binding force on e-commerce portals to operate in a transparent manner without indulging in any kind of malpractices, Bhartia said.