The Centre clarified that the sale of non-essential goods on e-commerce platforms will remain prohibited under the lockdown restrictions.
The decision came 4 days after the revised guidelines by the Ministry of Home Affairs (MHA) allowed the companies to sell mobile phones, refrigerators and ready-made garments. Following the revised guidelines by the ministry, states like Maharashtra, Rajasthan, Tamil Nadu and Andhra Pradesh had allowed e-commerce companies to deliver all goods.
Commerce and Industry Minister Piyush Goyal said that the Government’s decision to allow e-commerce players to deliver only essential goods will help in creating a level playing field for small retailers.
According to reports, emails and requests from small and regional retailers across the country to the Centre and State chief ministers, along with hard lobbying by their national bodies with the Prime Minister’s Office (PMO) have played a part in the Government’s decision to roll back the decision.
However, a Government official said that the decision was the result of not only the objections made by bricks-and-mortar stores to being treated unfairly but also the continual spread of COVID-19 across the country.
Confederation of All India Traders (CAIT) had urged the Government to allow online retailers to deal only in essential commodities.
The reversal has come as a major blow to the online firms which had begun preparing to dispatch orders. Flipkart had already begun moving shipments of smartphones and other electronics to its fulfillment centres.
Meanwhile, Kalyan Krishnamurthy, CEO, Flipkart, said that the company respects the Government’s decision to reverse its previous order even as it has hit the online firm the hardest since it has already begun moving shipments.
