Government asks Amazon to segregate food items from other products

Indian government has asked Seattle-based online retailer Amazon to ensure that food products are clearly segregated from other merchandise that is listed on its Indian platform.

This hints that the US-based giant would most likely get the permission it sought from the government, to commence food retailing in the country. This also means that Amazon would readily comply with the government’s order.

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Once India liberalised norms for foreign direct investment (FDI) in food retailing, Amazon had asked for the government’s approval to invest 3,500 crore in India over coming five years. This was done to be allowed to start selling third-party and its own private-label food articles, which would be sourced and packaged in India itself.

However, given that foreign-funded companies are still not permitted to directly retail other merchandise online, which requires segregation of stocks.

As of now, third-party sellers offer food items through two Amazon platforms, viz. Amazon Pantry and Amazon Now.

While Amazon Pantry allows customers to order up to 15 kg of products monthly and weekly, with a guarantee of next-day delivery, Amazon Now allows consumers to order products of daily use from big outlets and malls, which would be delivered within two hours.