AICPDF urges FMCG companies to stop deep discounting or face ‘non-cooperation’

The All India Consumer Products Distributors Federation (AICPDF) has written an open letter to the leadership of Fast Moving Consumer Goods (FMCG) companies asking them to stop deep discounting, and pricing practices that destabilise traditional retail. It has also urged them to introduce policies that guarantee fair margins and and treat general trade partners equitably.

In the absence of a positive response by the companies to its demands, the organisation has warned of ‘firm measures’ that would include a nationwide non-cooperation movement, publicly challenging brands that continue to disregard fair trade ethics and mobilise the trade network to safeguard their business interests.

The body stated that general trade was facing an existential crisis due to unethical deep discounting and predatory pricing creating artificial price wars, preferential treatment to quick commerce and e-commerce leaving the traditional trade side-lined and disempowered.

“The general trade-comprising traditional distributors and retailers-has been instrumental in your success. We have invested significant capital, resources, and time to make your brands household names. These brands are not just business entities-they are legacies co-created by your companies and our network. We cannot allow this legacy to be diminished by unfair market practices,” mentions the open letter.

level the field

The consumer body has asked the FMCG companies to ensure a level playing field that enables general trade to compete fairly, stop deep discounting and pricing practices that destabilise traditional retail, introduce policies that guarantee fair margins and establish fair and comprehensive trade agreements.

AICPDF organised meetings with retailers and distributors in 600 districts across the country to discuss the impact of quick commerce sales of traditional distribution and deep discounting offered to consumers.

“This is the first time that distributors and retailers have come together and are fighting for our existence. We have spoken to multiple people across the country and have decided to write to the FMCG companies. We have helped the companies establish themselves in households. If today the companies do not support us we will have no other option than to start a non-cooperation movement,” Dhairyashil Patil AICPDF, National President told businessline.