FMCG, automobile and mobile phone dealers seek laws to protect them in deals with companies
dealer groups, representing FMCG, automobile and mobile phone sectors, have come together to seek laws to protect the interests of «nearly 30 million dealers and distributors» who are forced to operate under «one-sided terms and conditions».
«We are concerned that companies operate without written agreements or impose one-sided agreements that solely benefit them,» Dhairyashil Patil, national president of All India Consumer Products Distributors Federation (AICPDF), said. «Distributors and dealers invest crores to set up their network, and there have been examples when companies suddenly decide to terminate their association, leaving distributors to bear the brunt of the losses,» he said, speaking for auto and mobile phone sectors as well.
There are no existing laws to compensate distributors and dealers in such cases.
Distributors and dealers across 18 sectors in total, including pharmaceuticals, paper, plastics, and electronics, have jointly raised their concerns and called for new laws and policies to protect their interests.
Federation of Automobile Dealers Association (Fada) alleged that companies have exited the market without compensating dealers while All India Mobile Retailers Association (Aimra) also alleged interpretation issues during GST litigations and invoicing and return of inventories upon expiry.
«We need to have a national supply policy, and empower and strengthen India's supply chain, which is the backbone of the industry,» said Praveen Khandelwal, secretary general of Confederation of All India Traders (CAIT). «Corporates have had a monopolistic attitude when it comes to engaging with trade, and that needs to change urgently.»
The organisations are seeking government intervention on the matter
