- Urges the Union government to implement one-nation, one-tax policy for ease of doing business.
- FMCG contributes about 90% to the total business of the sector and employs over 25% of the population, whereas modern and online businesses contribute only 10% and employment contributes only 1%
NE BUSINESS BUREAU
AHMEDABAD, MAY 31
The Federation of Gujarat FMCG Distributors Association and Chemists Association on Sunday held a meeting with retailers and wholesalers over differential product pricing, pack policy followed by the fast-moving consumer goods (FMCG) companies leading to low margins.
They urged the FMCG companies to close the gap between price and margin policy and the government to implement one-nation, one-tax policy.
The members of the Federation do FMCG business all over Gujarat. There are over five lakh distributors and 1.5 crore retailers nationally, Who have been involved in this business for over 100 years.
FMCG contributes about 90% to the total business of the sector and employs over 25% of the population, whereas modern and online businesses contribute only 10% and employment contributes only 1%.
Talking about taxation, Jashubhai Patel, president of the Chemists’ Association, said, “If only one return had to be filed, then trade would be easier.”
Arun Parikh, chairman, Federation of Gujarat FMCG Distributors Association, said, “For years, the authorised local distributor is the channel through which companies have been supplying to all retailers, including kiranas, paan shops, and modern trade. However, as organised retail and e-commerce have grown in the past few years, companies now supply to them directly at lower prices. This impacts our business. Besides, the inventory we get from companies is priced higher. The retailers are getting a margin of 10% and the mall is getting a margin of 20 to 22%, but there is a difference in weight, Because of that consumer are deceived.”
The price differential between modern trade and traditional trade in some categories is as high as 25-35 per cent, driving traffic to the former, added Parikh.
