The Confederation of All India Traders (CAIT) Sunday pitched for early introduction of the e-commerce policy as it apprehends vitiation of the market by e-commerce portals through predatory pricing and deep discounting during festive season beginning October 15.
“In the absence of any policy just before the festive season beginning October 15, e-commerce portals will play their dirty game of predatory pricing, deep discounting and loss funding, which will vitiate the market,” CAIT National President B C Bhartia said in a statement.
“Hence, we call for early introduction of e-commerce policy as early as possible,” he added. Urging Union Commerce Minister Suresh Prabhu to restrict preferred sellers of e-commerce companies to sell products on e-commerce portals, Bhartia alleged that they were instrumental in indulging in all sorts of malpractices.
He said the government has already issued first draft of e-commerce policy and a panel of secretaries is already in process of examining the draft policy. CAIT Secretary General Praveen Khandelwal said provisions on data localization should remain in the policy to check unauthorized infiltration of goods through e-commerce.
He also said the proposal to allow up to 49 percent Foreign Direct Investment in inventory model-based businesses amounts to backdoor entry of multi national companies in retail trade and it must be scrapped. “Traders will never accept such a provision under any circumstances,” he said.
Right to examine software and source-code for effective regulation is a good step as it will make sure foreign companies pay taxes properly, Khandelwal added.― Financial Express