FMCG distributors red flag e-com, qcom firms' use of private vehicles

In August, AICPDF also wrote to the Ministry of Commerce and Industry regarding the rapid growth of the quick commerce industry, which it said is hurting the trade

Fast-moving consumer products distributors’ association has written to the Ministry of Health and Family Welfare and the Ministry of Road Transport and Highways seeking an inquiry into the use of private vehicles by quick commerce and e-commerce companies for commercial operations.

It also called for compliance with the food regulator norms in the delivery of food products.

In its email written on Wednesday to the road transport ministry, the All India Consumer Products Distributors Federation (AICPDF) has asked it to look into the issue of quick commerce and e-commerce firms using private vehicles from their warehouses to deliver to consumers.

Its letter to the ministry of health, the distributors’ body has said quick commerce and e-commerce companies frequently use private vehicles for the delivery of food items. The AICPDF added that this is not in compliance with the regulations set by the Food Safety and Standards Authority of India (FSSAI).

“These standards are critical to prevent contamination and ensure that consumers receive safe and hygienically-handled food. However, the widespread use of private-owned two-wheelers by delivery personnel raises concerns about the adequacy of these vehicles to maintain the required food safety standards,” the letter addressed to the health ministry said. 

The distributors’ body stated in its letter to the road transport ministry that the use of private vehicles raises safety concerns. This is because vehicles may not be insured or maintained to the standards required for commercial operations.

In August, AICPDF also wrote to the Ministry of Commerce and Industry on the rapid growth of the quick-commerce industry, which it said is hurting trade. 

In September, the matter was referred from the Department for Promotion of Industry and Internal Trade (DPIIT), which comes under the commerce ministry, to the Competition Commission of India (CCI).

Earlier this week, sources told Business Standard that many prominent quick commerce and ecommerce players will be issued notices soon.

One of the ongoing complaints for which ecommerce players have been pulled up by the Centre has been non-compliance related to rules of display and packaging of products.

Even after several notices, many ecommerce players do not show the maximum retail price (MRP) and best before dates for perishable goods.

On the radar

 

Food safety concerns: The Federation claims vehicles don't comply with FSSAI regulations, risking food safety
 

Vehicle safety issues: Use of uninsured and inadequately maintained private vehicles for commercial deliveries raises safety concerns
 

Impact on traditional trade: Federation argues the rapid growth of quick commerce is harming traditional businesses
 

Government action pending: DPIIT has referred the issue to the Competition Commission, with notices expected for major players