FMCG distributors in Maharashtra to suspend purchase of Colgate products alleging predatory pricing

Distributors of Colgate Palmolive have decided to suspend purchase of all its products in Maharastra from May 12 alleging that the company was offering deep discounts to quick-commerce channels, which is against the interest of general trade.

"Colgate has been aggressively pushing stock into quick commerce channels such as Blinkit, Zepto and Instamart, offering deep discounts of 50–60% on MRP," said All India Consumer Products Distributors Federation (AICPDF) in a statement.

AICPDF is an umbrella body of FMCG distributors pan India.

This collective action is the result of months of "frustration, unresolved grievances, and sustained business erosion" that has reached an existential threshold for distributors and the broader general trade network, it said.

AICPDF warned that if the company fails to initiate corrective action, then this state-level action may soon escalate into a nationwide campaign, potentially leading to complete withdrawal of Colgate products from retail shelves and coordinated disruption of its supply lines.

The federation claims that it represents over 4.5 lakh FMCG distributors, in constantly raising its concerns over alleged predatory pricing by FMCG makers for Quick Commerce (Q-Com) platforms.

The association had earlier also approached fair trade regulator CCI, seeking probe against FMCG companies over the issue.