FMCG Distributors Challenge Quick-Commerce Growth

FMCG distributors have raised concerns over the rapid and unregulated growth of quick commerce platforms like Blinkit and Zepto, citing an uneven playing field that threatens traditional retailers. The All India Consumer Products Distributors Federation (AICPDF) suspects potential FDI violations and requests a thorough government investigation.

Fast-Moving Consumer Goods (FMCG) distributors are alarmed by the rapid expansion of quick-commerce platforms, urging immediate government scrutiny. In a letter to Commerce & Industry Minister Piyush Goyal, the All India Consumer Products Distributors Federation (AICPDF) emphasized the threats these platforms pose to small retailers and traditional distributors, long considered the backbone of India's retail sector.

The AICPDF suspects these quick-commerce firms of potentially violating foreign direct investment (FDI) regulations. By blurring the lines between marketplace and inventory-based models, platforms like Blinkit, Zepto, and Instamart could be sidestepping rules that prohibit control over inventory, necessitating an immediate probe into their operational frameworks.

The Federation has called for a comprehensive government investigation and protective measures to shield small retailers from monopolistic practices. They also recommend initiating a dialogue among stakeholders, including retailers, FMCG companies, and quick-commerce platforms, to ensure fairness. This comes as several FMCG companies report double-digit growth from quick-commerce channels.

(With inputs from agencies.)