Overview
- The AICPDF, which represents about 4.5 lakh independent distributors across 25 states, sent an open letter on Monday demanding immediate margin support and structural fixes from major FMCG companies.
- The federation presented a four‑pillar roadmap that asks for scientific margin revisions, a dynamic fuel‑linked logistics support, inventory and supply rationalization, and an urgent industry round‑table within days.
- AICPDF’s internal assessment states that transport, basic manpower and secondary logistics absorb up to ₹57 of every ₹100 in distribution costs, leaving typical margins of 3.5–5% insufficient to cover operating expenses.
- The group has given companies until July 30 to act and warned that, if no meaningful measures follow, distributors may stage coordinated protests in August and reduce service in remote territories, risking local stockouts.
- Manufacturers have shown price-driven 'value growth' while on‑ground physical volumes remain flat, a gap that the federation says forces distributors to carry higher costs and threatens the reach of FMCG brands into rural India.