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Badal Seeks to Clear Cloud Over Amazon’s Food Plans

June 14, 2018 06:30 AM


Badal Seeks to Clear Cloud Over Amazon’s Food Plans
Food processing minister asks DIPP to ease curbs on e-tailer’s food retailing venture
Shambhavi Anand & Rasul Bailay

New Delhi:

Food processing minister Harsimrat Kaur Badal has asked the Department of Industrial Policy and Promotion (DIPP) to relax restrictions imposed on Amazon’s food retailing plans, which have prevented the Seattlebased company’s ambitious $500-million project from taking off.

Progress on Amazon’s investment proposal has been stalled by operational curbs for almost a year since it won approval.

The DIPP, a division of the commerce and industry ministry that facilitates investment and technology flows, wants Amazon to separate the warehouses, logistics and inventories for the food-only venture from those of its flagship online marketplace in India.

“Last month, I met the officials at DIPP to sort out Amazon’s food retail venture, which had met with some roadblocks,” Badal told ET in an interview on Tuesday. “First, DIPP was not allowing them to have it (food retail and marketplace products) in the same space. Then they told them to maintain separate inventories.”

The minister said that while DIPP has agreed to relax the requirement of maintaining separate warehouses, the department is yet to allow Amazon to use the same transportation and logistics resources for distribution in both ventures

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