In India, the All India Consumer Products Distributors Federation (AICPDF) has strongly criticized dairy and FMCG firms for offering preferential discounts to quick-commerce platforms, threatening agitation from May 15 if parity in trade terms is not ensured.
The All India Consumer Products Distributors Federation (AICPDF), a leading body representing thousands of traditional distributors across India, has issued a stern warning to FMCG and dairy companies for offering deep discounts and preferential schemes to direct-to-retail (D2R) and quick-commerce platforms such as Swiggy Instamart, Zepto, and Blinkit. The Federation has threatened a nationwide agitation beginning May 15 if equitable distribution terms are not restored across all sales channels.
AICPDF, which advocates for the rights of traditional retail distributors who remain vital in Tier 2, Tier 3, and rural markets, criticized the growing trend among dairy brands—especially those offering value-added products like flavored milk, paneer, dahi, and UHT beverages—for prioritizing e-commerce and quick-delivery channels with better margins, stock availability, and extended credit.
“By offering exclusive discounts and favorable schemes to quick-commerce platforms, these companies are sidelining the backbone of India’s distribution network,” said a representative of AICPDF. The Federation submitted a list of companies allegedly engaging in such practices and has called for urgent dialogue with them.
If the issue is not resolved by May 15, AICPDF plans to stop billing and stocking products of the listed companies and has stated intentions to approach regulatory authorities, including the Competition Commission of India (CCI), for intervention on grounds of anti-competitive behavior.
As digital platforms continue gaining urban traction, traditional distributors are facing margin pressure and feel increasingly marginalized. The Federation asserts that without a balanced and transparent channel policy, companies risk damaging long-standing relationships with retail partners and disrupting access to rural consumers.
Industry Insight:
Dairy firms must urgently revisit their channel strategies to prevent escalating conflict. Transparent and equitable trade policies are essential to maintain network stability and rural market access.
