FMCG distributors seek clause for collecting expired, damaged stock

In another letter to the government, the body alleged that damaged and expired FMCG goods are being sold via quick commerce platforms and stored in poor conditions

A distributors’ body has sent a letter to all fast-moving consumer goods (FMCG) companies, asking for proper bilateral agreements to include the collection of damaged and expired goods. In another letter to the Minister of Health and Family Welfare (MoHFW), it alleged that damaged stock is being sold through quick commerce (qcom) platforms.

 

It has urged FMCG companies in an open letter to collect damaged or non-saleable goods from the market and ensure timely compensation or stock replacement through a transparent process.

 

Currently, contracts between companies and distributors do not include clauses for compensation related to damaged stock.

   

In its letter to MoHFW, the All India Consumer Products Distributors Federation (AICPDF) said damaged and expired goods are being circulated, especially through dark stores operated by qcom platforms.

 

The letter cited an incident in which health inspectors discovered damaged food packs stored in a Mumbai dark store operated by a leading qcom platform. “The facility lacked proper ventilation, pest control, and sanitation — directly endangering the health of consumers,” the letter observed.

 

It further mentioned another instance where expired personal care and dairy products were found in a dark store in Bengaluru.

 

The AICPDF also wrote that almost all FMCG companies do not include clauses in their agreements holding them responsible for the collection and disposal of expired or damaged goods. 

 

It urged the government to bring qcom dark stores under regular inspections and compliance audits by the Food Safety and Standards Authority of India, with penalties for unhygienic or unlicensed storage.

 

The distributors’ body has also requested a meeting to present further evidence and called for a policy framework.

 

In March, it filed a petition with the Competition Commission of India (CCI) against leading quick commerce platforms — Blinkit, Zepto, and Swiggy Instamart — alleging unfair pricing and market monopolisation.

 

In April, CCI sent a letter to AICPDF seeking additional information on the complaint.

 

CCI also asked the distributors’ body for details on the relevant market share of each qcom player in the FMCG industry and sought clarity on whether FMCG companies have any exclusive distribution agreements.

 

It further asked the complainant for evidence of discriminatory pricing based on consumer location, device type, or purchasing behaviour, and for any proof of products being sold below cost price. 

Distributors’ demand cart  

• In a letter to the government, distributors have urged that quick commerce dark stores be regularly inspected
• Distributors have called for a policy framework to regulate dark stores
• In March, distributors’ body AICPDF had filed a petition with CCI against leading quick-commerce platforms