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Tamil Nadu Distributors Protest Predatory Pricing
13 Dec
Summary
- Distributors allege unfair pricing from large FMCG companies.
- 25% of small retail shops in Chennai have reportedly closed.
- Distributors urge government intervention for fair competition.
Traditional fast-moving consumer goods distributors in Tamil Nadu have voiced strong opposition to alleged predatory pricing by major FMCG companies. Protesters in Chennai highlighted discriminatory supply policies, arguing that large retailers and online platforms receive products at significantly lower rates than traditional distributors.
This uneven playing field has dire consequences, with the federation reporting that approximately 25% of small retail shops in Chennai have already shut down. Distributors warn that the continuation of these practices threatens the livelihoods of thousands of families and could lead to increased market concentration.
The federation is appealing to both central and state governments for policy interventions, such as uniform pricing across all sales channels. They seek to curb below-cost selling and protect the traditional distribution model, emphasizing the critical need for regulatory action to ensure fair competition.
