Distributors of fast-moving consumer goods (FMCG) have sought a "level-playing field" with the leading B2B retailers from the makers, failing to which they have threatened to drop products from their portfolio.
All India Consumer Products Distributors Federation (AICPDF) has written to FMCG companies against the price disparity between traditional distributors and other organised business-to-business (B2B) distribution firms, both online and offline, which have entered the sector in the last few years.
The federation had said it has decided to call for a “non-cooperation” movement against FMCG companies from next year if B2B retailers such as Jiomart, Walmart, Metro Cash & Carry, Booker, ElasticRun, udaan etc. "If the companies are not able to give us a level-playing field then we will drop the product sold by Jiomart/ B2B companies from our portfolio," said AICPDF.
Speaking to PTI, AICPDF President Dhairyashil Patil said rates and schemes given to the retailers are governed by the FMCG companies and the distributors have no say in the entire process. "If the brands are the same, then how could the same products lands in the market in two prices," he said. According to him, sometimes discounts are even lesser than the landing price of distributors. "We need a price parity in the market," he said.