Ulink Agritech Private Limited Vs Agro Input Dealers Association (Competition Commission of India)
Summary: The Competition Commission of India (CCI) held that Agro Input Dealers Association (AIDA), Agro Input Welfare Association (AIWA) and their responsible office bearers engaged in anti-competitive conduct by organising and implementing a boycott against online platforms engaged in sale and distribution of agricultural inputs. The Information was filed by Ulink Agritech Private Limited, an agricultural technology start-up operating through its AgroStar mobile application, call centre and network of Saathi Stores and providing farmers access to agricultural inputs and advisory services. The Informant alleged that the associations threatened retailers and manufacturers, discouraged them from dealing with AgroStar and other online platforms, and sought to cut off both procurement and retail distribution channels available to technology-based businesses.
CCI noted that Rule 10(E), inserted in the Insecticides Rules, 1971 through the Insecticides (Second Amendment) Rules, 2022, permitted a licensee to undertake sale of insecticides through an e-commerce entity subject to applicable statutory requirements. The Informant alleged that despite this regulatory framework, the associations continued their campaign against online platforms and pressured manufacturers and retailers not to deal with them.
The Director General found that AIDA had issued a communication dated 05.08.2022 asking agri-input companies to stop sales through online platforms. During investigation, AIDA President Mr. Manmohan C. Kalantri admitted that the association had requested agro-input manufacturers to stop online sales and had discouraged retailers from partnering with or procuring products from online platforms. The DG concluded that the boycott limited channels of supply and distribution and hindered the growth of technology-based players such as AgroStar.
