06 February 2017 | News | By NFS Correspondent
One of the biggest marketplaces of the world, Amazon is moving a step forward to setup food e-retail venture in India. The company has recently approached the government with the proposal of stocking the locally produced food items and later selling them online through its portal. The Seattle-based company will be shelling out a massive investment of US $500 million for this project, becoming the first foreign retailer to enter the segment.
Amazon currently operates an e-commerce marketplace and although India allows 100 per cent overseas capital in such platforms, these entities cannot sell products themselves. The government, in a landmark liberalising policy in the February 2016 budget, allowed 100 per cent foreign investment in retailing of processed foods made in India.
As per the recent report in one of the renowned dailies, the company has filed its application with DIPP, which handles foreign investment in retailing and e-commerce, said a person familiar with the development. The company plans to invest $500 million over five years and could start selling locally-produced food items within six months of obtaining approval, the person said.
Although, these e-commerce entities should ensure that no misleading information/false claims pertaining to the sellers/brand owners, vendors, importers or manufacturers or misleading images of food products are made available or shown on their platform. The e-commerce entities should clearly specify on their platform that liability of any violation of the FSS Act and applicable rules and regulation would be with sellers/brand owners, vendors, importers or manufacturers of the food products.