Government rejects Flipkart’s plan to enter food retail

NEW DELHI: The government has rejected Flipkart’s proposal to enter the food retail business, citing regulatory issues.

Last week, almost a year after Flipkart FarmerMart filed its application, the department for promotion of industry and internal trade (DPIIT) wrote to the Walmart-controlled company that it cannot be allowed into food retail – which was carved out as a separate category for foreign direct investment (FDI) – as an entity that runs a marketplace, or has equity from it, and will not be allowed to sell product on its platforms.

Flipkart FarmerMart had proposed to retail food products made or produced in India through Flipkart and other online and mobile platforms. Besides, the department has said that Flipkart Farmer-Mart’s memorandum of association does not permit it to undertake food retail.