AICPDF.Official

Thousands of FMCG distributors across India are demanding transparency and accountability from Products regarding its policy on damaged, expired, and near-expiry stocks.

has raised this matter before the Government of India after receiving reports that, in Kerala alone, damaged and expired stocks worth several crores remain unresolved. Similar concerns are being reported from distributors across multiple states.

Distributors are asking a simple question:

Has ever issued a clear, written, nationwide policy on reimbursement and disposal of expired and damaged stocks?

Many distributors report carrying substantial inventories of expired goods while facing mounting financial pressure. There are also concerns regarding the supply of near-expiry stocks, where the remaining shelf life is insufficient for normal trade operations.

When retailers refuse payment until expiry claims are settled, the entire financial burden falls on distributors, who are already operating on thin margins and bearing the costs of warehousing, logistics, manpower, and market servicing.

AICPDF has formally taken up the issue with the Government, and the matter has now been referred for discussion and response from the concerned authorities.

We urge Parle to:
✔ Declare a transparent national policy on damaged and expired stock.
✔ Ensure timely settlement of legitimate distributor claims.
✔ Prevent the supply of near-expiry products into the distribution channel.
✔ Protect the financial interests of distributors who have built the brand across India.

The FMCG supply chain cannot remain sustainable if distributors are forced to absorb losses that are beyond their control.

FMCG distributors are not asking for privilege. We are asking for viability.

For years, distributors have carried the weight of rising fuel costs, manpower expenses, warehousing charges, compliance, technology, interest costs and last-mile servicing pressure while margins continue to shrink.

A margin of 3.5% to 5% is no longer sustainable in today’s cost environment.

At AICPDF, we urge FMCG companies to treat this as a serious industry concern. If distributors continue to be pushed into unviable operations, the impact will not stop at one business. It will affect retailers, rural markets, supply continuity and ultimately the common consumer.

Fair margins are not optional.
They are the foundation of a healthy FMCG ecosystem.

Distributors keep India supplied.
Now, the system must keep distributors supported.

Read More:
https://www.ndtvprofit.com/business/fmcg-distributors-warn-of-nationwide-protest-seek-higher-margins-amid-rising-costs-11608178

The FMCG distribution crisis is real and it cannot be ignored.

Shrinking margins, rising logistics costs, manpower expenses, warehousing pressure and working capital burden are pushing distributors to the edge.

At AICPDF, we believe this is not just a distributor issue. It is a supply chain issue. It is a rural availability issue. It is a consumer issue.

If distributors are weakened, the entire FMCG ecosystem feels the impact from companies and retailers to the last-mile consumer.

Fair margins are not a demand.
They are the foundation of a sustainable distributi

Read More:
https://www.whalesbook.com/news/English/consumer-products/FMCG-Distribution-Crisis-Margin-Squeeze-Threatens-Supply-Chains/6a26cd39986d6395839a01bf

India’s FMCG distribution network is carrying the weight of rising costs, shrinking margins and increasing operational pressure.

At AICPDF, we have urged FMCG companies to urgently review distributor margins and recognise the ground reality faced by lakhs of distributors across the country.

Fuel, logistics, manpower, warehousing, electricity, compliance, technology and working capital costs have all increased. But distributor margins continue to remain under pressure.

A business cannot survive on turnover alone when profitability keeps shrinking.

If corrective steps are not taken in time, the strength of India’s last-mile FMCG supply chain will be at serious risk.

Distributors are not just intermediaries.
We are the force that keeps products moving, retailers supplied and consumers served across India.

Fair margins. Sustainable systems. Respect for the distribution ecosystem.

Read More: https://www.livemint.com/industry/fmcg-distributors-body-issues-warning-to-companies-over-shrinking-margins-rising-costs-11780924969838.html

India’s FMCG distribution network is under serious cost pressure.

For every ₹100 earned, a major portion is already consumed by logistics, manpower, secondary transportation and operational expenses even before warehousing, compliance, damages and financial costs are considered.

At AICPDF, we strongly believe that distributors cannot continue to absorb rising costs without fair margin support.

If the distribution ecosystem weakens, the impact will not remain limited to distributors. It will affect retailers, rural market availability, supply continuity and ultimately the common consumer.

We urge FMCG companies to recognise this reality and work towards a sustainable margin structure that protects distributors and strengthens India’s last-mile supply chain.

Distributors are not just a channel.
We are the backbone of FMCG availability across India.

Read More: https://www.businesstoday.in/india/story/give-us-margin-support-or-risk-rural-stockouts-distributors-warn-indias-fmcg-giants-535639-2026-06-08

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This isn’t just about ₹100 crore worth of damaged goods.
It’s about trust, accountability, and the reality of the FMCG distribution ecosystem.

When compromised products enter the market, the impact is felt by distributors, retailers, and consumers alike.

A conversation the industry cannot ignore.
Watch the full discussion now:
https://www.youtube.com/watch?v=BkoeHdqly_M