Seven Lakh Shopkeepers, 60,000 Distributors to Launch Front Against FMCG Companies
Traders-distributors meeting to be Held in Ahmedabad Today
Companies Start Direct Sales and removes distributors after Market Expands Beyond Rs. 5 Lakh, merge the small market in one units to expand its reach and sales in the area
(From Our Correspondent) Ahmedabad, Saturday
Around seven lakh retail shopkeepers and more than 59,700 distributors across Gujarat are preparing to unite against Fast Moving Consumer Goods (FMCG) companies that, after achieving sales of around Rs. 5 lakh in a particular market areas through distributors, allegedly begin direct supply to retailers in an attempt to establish dominance in the market. A major meeting is being organized in Ahmedabad on Sunday 17th May 2026, to unite these shopkeepers and distributors.
According to distributors, once FMCG companies build a market of around Rs. 5 lakh in a region, they merge nearby villages and small towns to create a market worth Rs. 10 to 15 lakh and then start direct selling operations themselves. As a result, distributors and sales executives who spend one or two years developing the market lose their business just when they begin expecting returns from their efforts.
This has led to growing anger among distributors. Consequently, the Federation of Gujarat FMCG Distributors Association charitable trust and the Federation of All India Distributors have decided to jointly launch a protest movement. The companies facing opposition include Hindustan Unilever, Reckitt & colman, Nestlé, Colgate-Palmolive, Johnson & Johnson and Britannia Industries. Trade leaders from Hyderabad have also arrived in Ahmedabad to support the movement.
Small Shopkeepers Also Angry Over Mall Supply Strategy
Retail shopkeepers are also upset because FMCG companies are increasingly supplying products to malls, which they believe is an attempt to eliminate small retailers. According to traders and distributors, malls advertise products as “cheaper,” thereby damaging the business of small shops, but the actual reality is different.
Distributors and retailers gave the example of Cadbury Celebrations chocolates. A 109.5-gram pack is supplied to distributors for Rs. 110, while the Maximum Retail Price (MRP) in malls is Rs. 140. Similarly, a 153.25-gram Cadbury Celebrations pack is sold by retailers for Rs. 160, whereas malls sell a 179.66-gram version for Rs. 210. Based on the weight difference, traders claim the fair MRP should be Rs. 187.57, meaning customers pays Rs. 22.34 extra in malls.
Traders allege that FMCG companies are misleading customers by claiming products are cheaper in malls. They argue that most consumers do not compare product weight and retail pricing carefully. As a result, FMCG companies are allegedly harming small shopkeepers on one side and overcharging consumers on the other. This has prompted retailers and distributors to unite against the companies.
Companies Accused of Changing Product Weight to Mislead Consumers
A bundle of five 100-gram Dettol soaps is sold for Rs. 182, making the cost per soap around Rs. 36.40. Retail customers usually get each soap for about Rs. 36.40 through local shops. However, malls sell a pack of four soaps for Rs. 156, effectively costing customers more per soap. Traders claim mall buyers end up paying around Rs. 2.60 extra per soap.
Similarly, a four-pack of 150-gram Dettol soaps is sold in retail shops for Rs. 217, while malls price the same at Rs. 290. This means customers pay Rs. 54.25 per soap in shops but Rs. 58 per soap in malls, paying Rs. 2.75 extra per soap.
Retailers also alleged that a Poppins candy pack available in local shops for Rs. 20 is sold in malls for Rs. 30 with changes in packaging weight. According to traders, FMCG companies are using variations in grammage and packaging to confuse customers and increase profits, while consumers remain unaware of the pricing differences.
