FMCG distributors may extend non-cooperation deadline as talks in progress

Distributors of fast-moving consumer goods (FMCG), ranging from biscuits to shampoos, are likely to delay the January 1 deadline they set to stop working with the consumer goods companies as talks over their demand for similar margins as given to organised distribution platforms continue, officials said.

The All India Consumer Products Distributors Federation (AICPDF), a body that represents dealers and distributors, is in negotiation with several FMCG makers and this may stretch to next year, said an official.

Earlier, AICPDF had put a deadline of January 1, 2022, to address the price disparity and had threatened to drop products from their portfolio.

The federation had 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 and udaan, continue to sell the products at lesser prices.

According to an AICPDF official, talks with several companies are going on and in some, they have also received favourable responses.

When asked about the deadline, the official told PTI, "Yes, we may extend as we are still talking to companies and are getting favourable responses."

Talks with three major companies like ITC, Nestle and Reckitt are over, he added

"We are in negotiations with almost seven companies right now," the official said.

Formed in 2019, AICPDF represents over 4,00,000 distributors and stockists across India.

Earlier, it had written to companies informing that B2B retailers are offering FMCG products to the retailers and local shops at lower products, what they offer and it is now "adversely affecting" their reputation and goodwill.

"Hence, our demand is that we also receive those products at prices at which we can also offer the same prices as Jio Mart /B2B companies," the association had said in an open letter to FMCG companies.

Moreover, AICPDF had also said its members would also "not launch any new product of the company" unless they get an undertaking from the FMCG makers that the said product is not available with B2B retailers.