Govt committed to protect kirana stores from large-format e-tailers: Piyush Goyal

Govt committed to protect kirana stores from large-format e-tailers: Piyush Goyal
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NEW DELHI: The government is committed to protecting small retailers such as ‘kirana’ stores from “large-format” e-commerce giants while encouraging the use of technology for democratisation of the marketplace and consumer convenience, commerce and consumer affairs minister Piyush Goyal said on Friday, citing examples of Centre’s initiatives such as GeM portal and the Open Network for Digital Commerce.

India’s e-commerce model is unique that believes in the co-existence of both ‘kirana’ stores and e-tailing giants in contrast to some developed countries where big multinational e-commerce entities annihilated millions of small neighbourhood shops and rendered them jobless, he told reporters. “We don’t want that to happen in India,” he added.

Goyal said the government’s cautious approach saved over 80 million such small and micro enterprises. “Their [small traders and kirana stores] very existence could have come under threat with the growing influence of large-scale, large-format e-commerce companies, which of course are [still] indulging in very many several irregular practices which are under investigation…,” he said.

“We want them [‘kirana’ stores] to take the opportunity to use technology to serve our consumers. We want them to get equal opportunities to enjoy the fruit of the digital world. We want their data to be protected. That consumer data also to be protected,” he said while explaining the government’s Open Network for Digital Commerce (ONDC) project and allowing cooperatives to access the government’s public procurement portal, GeM.

The Union cabinet on Wednesday decided to expand Government e-Marketplace or GeM’s scope to the private domain by allowing about 8.54 lakh cooperatives such as Amul and IFFCO to purchase from the portal, which will give competition to private e-commerce platforms such as Amazon and Flipkart. HT reported it on Thursday.

“The government e-marketplace has been democratised. By onboarding cooperatives as registered buyers on the platform, GeM has been made more inclusive, in line with Prime Minister Narendra Modi’s vision of development for all,” the minister said.

GeM portal CEO PK Singh said over 270 million members of cooperatives can now buy goods and services at highly competitive rates on the GeM portal, which was hitherto open for only government entities.

The government also plans to roll out its indigenously developed online e-commerce network for the public in 100 Indian cities by Diwali this year to provide millions of kirana stores and consumers an alternative to multinational platforms such as Amazon and Flipkart. HT reported about the launch of a pilot project in Bengaluru on April 30.

Goyal, who also holds the portfolios of industry, textile, consumer affairs, food and public distribution, also justified the government’s move to stop service charges slyly levied on dinners by many restaurants. He dismissed the arguments of restaurants that the move will adversely affect the earning of their employees.

“Restaurants are free to increase rates of their food menu and use the same to raise salaries of their employees,” he said.

The department of consumer affairs on Thursday announced that the government would soon come out with a legal framework to stop restaurants from imposing service charges.

“You [restaurants] cannot add service charge in a bill. If you feel that some more benefits are to be given to employees, it cannot be forced on customers. You can raise prices [of menu items] to give hikes,” he said. Consumers are free to give tips for good food and good services rendered by persons serving them, but it cannot be compulsory, he added.

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