Online stores offering huge range of products and big store chains entering retail marketing create an adverse impact on the distribution system, besides damaging the small retail network, Federation of All India Distributors Association said.
“Distributors purchase products from manufacturers by paying full cash and supply to retail outlets, small or big by offering credit terms, without any guarantee or safety for realising the dues,” Ch Krishna, President, FAIDA was quoted by PTI as saying.
According to a PTI report: Participating in the silver jubilee celebrations of Coimbatore Consumer Products Distributors Association, he said there was no security for their money and recognition to them from both the Central and State government policies.
The distributors were considered brokers and slaves and there was the need to strengthen the system as the next generation was not willing to take over distribution, he said.
Distributors, who have already faced challenges of both GST and demonetization have to face more tests in future, while billing and transactions of over Rs 50,000, he said.
Former CCPDA President T S Mohan Shankar suggested creation of a separate ministry or Board to take care of business activites of distributors, since they worked on ‘a wafer-thin margin,’ including the products by MNCs.
He asked the President of local chapter of Indian Chamber of Commerce and Industry, Vanitha Mohan, to assist them, who are also the Chamber members, to help solve disputes between them and industry.