FMCG cos dumping near-expiry products through quick-commerce: AICPDF

All India Consumer Products Distributors Federation (AICPDF) has said that this trend threatens the stability of small and medium retail businesses and also consumer safety.

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  • Storyboard18,
| November 6, 2024 , 9:13 am
AICPDF has claimed that an estimated two lakh kirana stores have shut down in the last year because of the rapid expansion of quick commerce along with the economic slowdown.
AICPDF has claimed that an estimated two lakh kirana stores have shut down in the last year because of the rapid expansion of quick commerce along with the economic slowdown.

The All India Consumer Products Distributors Federation (AICPDF) has raised major concerns over FMCG firms dumping near-expiry products and non-movable stocks, often disguised through hefty discounts, through quick-commerce platforms.

The industry body that represents FMCG distributors in India alleged that consumers, lured by attractive discounts, may unknowingly purchase near-expiry products or non-movable stocks that can pose health risks, especially with food and consumable goods.

The lack of clear labelling and transparent information exacerbates the issue.

In a recent statement, AICPDF has appealed to the Ministry of Consumer Affairs, warning that quick-commerce and e-commerce platforms are becoming convenient dumping grounds for products approaching their expiration dates.

The body has also alleged that this trend threatens not only the stability of small and medium retail businesses but also consumer safety, as it often lacks proper transparency and regulation.

Read more: Two lakh kirana stores forced to shut down due to rise of quick-commerce: AICPDF

“We are witnessing an alarming trend where manufacturing companies are flooding the market with near-expiry and non-movable stocks, leveraging consumers with substantial discounts to push these products,” AICPDF said.

“This practice not only jeopardises the livelihood of small and medium retailers but also poses significant risks to consumers who may unknowingly purchase compromised products.”

The influx of discounted, near-expiry products on e-commerce and quick commerce platforms creates an uneven playing field, severely impacting traditional retailers, AICPDF further added.

It is to be noted that AICPDF recently also lodged a formal complaint with the Competition Commission of India against quick commerce platforms like Blinkit, Zepto and Instamart, alleging predatory pricing practices.

AICPDF has claimed that an estimated two lakh kirana stores have shut down in the last year because of the rapid expansion of quick commerce along with the economic slowdown.

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