Distributors’ body plans action against FMCG firms over deep discounts

The apex body of distributors in India is gearing up to take action against fast-moving consumer goods (FMCG) companies whose products are sold at deep discounts on quick commerce and e-commerce platforms, by stopping the sale of such products at the distributor level, according to a top office-bearer.

The All India Consumer Products Distributors Federation (AICPDF) will implement a non-cooperation movement and is preparing a list of FMCG companies whose products are available at heavy discounts on quick commerce and e-commerce platforms. The organisation will take action against FMCG makers that have not responded to the body’s open letter seeking a level playing field for general trade.

“We have discussed with a few FMCG companies how quick commerce and e-commerce are impacting the business. The companies have assured us that they would implement a process to ensure fair play for general trade. However, there are FMCG makers who have not responded to our multiple calls. The body will be taking action, and a non-cooperation movement will begin soon,” said Dhairyashil Patil, National President of AICPDF, to businessline.

AICPDF met with FMCG companies between April 20 and April 30 to discuss the impact of quick commerce and e-commerce on their business.

Earlier, the organisation had written an open letter to FMCG makers, urging them to address the issue of unethical deep discounting and predatory pricing, which are creating artificial price wars and resulting in preferential treatment for quick commerce and e-commerce players.

“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,” the open letter stated.

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

Published on May 4, 2025