New Delhi: Indian e-commerce unit Flipkart has said that it would re-apply for a food retail license in India after reports said its earlier proposal was rejected by the government last week.
India’s Department for Promotion of Industry and Internal Trade (DPIIT) last week rejected the e-tailer’s proposal to sell food products through online and mobile platforms.
If accepted, Flipkart would compete with Amazon.com Inc’s India unit, Alibaba-backed BigBasket, SoftBank-backed Grofers, and Reliance Industries Ltd’s recently launched JioMart.
The government permits 100% foreign direct investment in food retail for food produced and manufactured in India.
Last year, the company had set up a new local entity – Flipkart Farmermart – to focus on food retail in India, and had applied for requisite licences from the government. Flipkart Group CEO Kalyan Krishnamurthy, at that time had said that the move an important part of the company’s efforts to boost Indian agriculture as well as food processing industry in the country.