The federation company connects distributors and merchants. The Federation’s members are in FMCG business throughout the whole of Gujarat. Nationally, there are about five lakh distributors and 1.5 crore retailers who have been in the business for more than a century.
The Gujarat FMCG Distributors Association and the Chemists Association, met with retailers and wholesalers to discuss differential pricing and pack strategy. The summit pushed the companies to eliminate the price-margin disparity and instructed the government to implement a one-country, one-tax strategy. Retailers are finding it tough to do business due to price differences and differing packing standards.
FMCG accounts for over 90% of total sector activity and employs more than 25% of the population, whilst modern and online enterprises account for only 10% and employment accounts for only 1%.
According to Jashubhai Patel, president of the Chemists’ Association, trade would be easier if only one return had to be paid. Arun Parikh, chairman of FMCG, was of an opinion that the store earns a 10% profit while the mall earns a 20% to 22% margin, yet there is a weight differential, which leads to consumer confusion.
Read Also: Come October And Shrinkflation To Wane?
