FMCG firms dumping near-expiry products through quick commerce: Distributors' Fed

New Delhi: Fast-moving consumer goods (FMCG) companies are using quick commerce and e-commerce platforms as dumping grounds for near-expiry and non-movable stocks, often disguised through hefty discounts, the All India Consumer Products Distributors Federation (AICPDF) alleged on Tuesday.

The industry body that represents FMCG distributors in India has raised this issue with the Ministry of Consumer Affairs saying the practice “threatens both the retail trade sector and consumers across the country”.

“We are witnessing an alarming trend where manufacturing companies are flooding the market with near-expiry and non-movable stocks, leveraging consumers with substantial discounts to push these products,” AICPDF said.

“This practice not only jeopardises the livelihood of small and medium retailers but also poses significant risks to consumers who may unknowingly purchase compromised products,” it added.

The AICPDF alleged that quick commerce and e-commerce platforms have turned into convenient channels for FMCG companies to offload products nearing expiry or with low consumer demand. This results in a surge of discounted goods that may not meet quality expectations, turning these platforms into dumping yards that impact the overall market ecosystem.

Consumers, lured by attractive discounts, may unknowingly purchase near-expiry products or non-movable stocks that can pose health risks, especially with food and consumable goods. The lack of clear labelling and transparent information exacerbates this issue, it said.

The industry lobby noted that small and medium-sized retailers cannot compete with the deep price cuts, which affects their financial stability and threatens their survival. “The influx of discounted, near-expiry products on e-commerce and quick commerce platforms creates an uneven playing field, severely impacting traditional retailers,” it said.

The distributors’ body has requested the Ministry of Consumer Affairs to enforce mandatory and clear labelling for products that are close to expiration. “Platforms should be required to display this information prominently to allow consumers to make informed purchasing decisions,” AICPDF said in a statement.

The AICPDF recently also lodged a formal complaint with the Competition Commission of India against quick commerce platforms like Blinkit, Zepto and Instamart, alleging predatory pricing practices.