Amazon told to segregate food business from other merchandise list: Report

New Delhi: The US-based retail giant Amazon that proposed to invest about USD 500 million for e-retail of food products in India in March this year, has reportedly been told to segregate its departments, as per a newspaper report.

As per a report in the Economic Times, the government has asked Amazon to ensure a “clear segregation between the food products it wants to sell directly to consumers and the other merchandise it lists online, a likely precursor to granting permission to the US-based ecommerce giant to commence food retailing in India.”

The government last year allowed 100 percent foreign direct investment (FDI) for marketing, including through e-commerce, of food products manufactured and produced in India.

While Amazon is one of the major e-commerce players in India, Grofers and Big Basket are into online grocery space.

The food processing sector received USD 5.76 billion in FDI equity inflows from 2010-11 to 2015-16. In 2016-17 (April-December), the food processing sector in the country has received USD 663.23 million worth of FDI equity inflows.

With PTI Inputs