NEW DELHI: Around four lakh distributors across India have threatened to stop stocking goods from December 15, alleging discriminatory pricing by consumer goods companies.
Distributors are an integral cog in the $700-billion Indian retail market and are used by companies to reach more than one crore wholesalers and retailers across the country.
“Companies are offering products at discounted rates to modern trade and e-commerce companies because these channels are buying goods in bulk. Even the nature of the offers in these channels are different. For instance, you will find more buy-one-get-one-free offers in modern trade than at a kirana store. We have written to most FMCG companies about this unfair practice and if they don’t respond soon, we will stop buying goods from them,” said Dhairyashil Patil, national president of the All India Consumer Products Distributors Federation (AICPDF).
The agitation among distributors has its seeds in
Gujarat
where more than 600 distributors have stopped stocking products, said Patil. Local distributor bodies from around 20 states were present at a meet in Goa recently to discuss the same issue.
While several FMCG companies did not comment on the allegations, a
Hindustan Unilever
(HUL) spokesperson said, “The allegations are factually incorrect. General trade remains one of the biggest channels for HUL. We are actively designing our portfolio by channel to ensure we protect distributors’ interests, as we believe in the long term growth of general trade while participating with relevant portfolio in emerging channels.”
Distributors told TOI that as a further course of action, a common letter addressing the Prime Minister will be sent to all states, which will be handed over to MPs of
Lok Sabha
and
Rajya Sabha
and the District Magistrates or collectors, asking them to intervene in the alleged
price discrimination
by companies.