The All India Consumer Products Distributors Federation (AICPDF) has urged the government to restrict the handling and sales of perishable goods on the quick commerce platform.
Citing the Datum Intelligence report that projects unprecedented growth in the quick commerce sector, the body has asked the government to implement policies to support retailers across the country.
The report states that 46 per cent of buyers from quick commerce have reduced Kirana shops. The report forecasts India’s quick commerce market to grow from $6.1 billion in 2024 to $40 billion by 2030.
If this projection becomes a reality, millions of small retailers and distributors face the risk of shutting down, marking what could be the beginning of the end for India’s small traders and the communities they serve.
“We are calling on the government to restrict quick commerce platforms from handling perishable goods such as milk and vegetables, which are highly susceptible to tampering.
The federation also recommends policies to support small retailers’ digital transformation and job protection programs for workers affected by potential closures,” a statement from AICPDF said.
The federation has asked the government to implement the Essential Commodities Act on quick commerce, given the logistical challenges of handling perishable goods within short delivery windows.
The body said quick commerce platforms have significant capital backing, enabling aggressive discounting that small retailers cannot match.
There is a need to protect employment of small retailers with the government developing employment protection and support programs for those affected to ensure that workers from traditional retail can find pathways to stable employment.
“The report signals what could be the beginning of the end for India’s traditional retail sector. Quick commerce platforms are growing at an unprecedented pace, and if left unregulated, their practices may push countless small businesses to close their doors. India’s small retailers are vital to our economy and culture. Protecting them is not only about preserving businesses; it’s about safeguarding the livelihoods of millions and maintaining the character of our communities. AICPDF remains committed to standing with small traders and advocating for their rights,” said Dhairyashil Patil, National President of AICPDF.
The AICPDF estimates that if this growth in quick commerce continues unchecked, over a million small retailers could close their shutters by 2030, causing significant economic disruption, job losses, and the loss of local commerce that communities have relied upon for generations.