Pact between Gujarat handloom and Flipkart, CAIT condemns govt's move

Domestic traders body CAIT on Tuesday "strongly condemned" the decision of the Gujarat government for a pact between Gujarat State Handloom and Handicrafts Development Cooperation Ltd (GSHHDC) and e-commerce firm Flipkart.

The Confederation of All India Traders (CAIT) in a statement said it "strongly condemned the decision of the Gujarat government announcing" this memorandum of understanding (MoU).

CAIT Secretary General Praveen Khandelwal said that it is "extremely unfortunate and regrettable" that on one hand Commerce and Industry Minister Piyush Goyal has publicly expressed his concerns for the "unethical and unlawful business practices being carried out on Flipkart, and on the other hand Gujarat Chief Minister Vijay Rupani has joined hands with Flipkart".

He said this decision not only contradicts and conflicts with the Centre's stand but it also hurts the sentiments of seven crore.

This action by the chief minister also shows his "insensitivity and indifference" to the small retailers of Gujarat who are involved in a nationwide agitation against Flipkart's business model.

E-commerce major Flipkart on Monday said it has signed a MoU with GSHHDC for promotion of local handicrafts.

The agreement is part of Flipkart's Samarth initiative under which the Walmart-backed company is helping artisans, weavers and craftsmen set up their business on the Flipkart Marketplace.