Retailer Body Urges FMCG Leaders to Halt Quick Commerce Supplies Amid Deep Discounting Concerns
The All India Consumer Products Distributors Federation (AICPDF), representing over 4.5 lakh FMCG distributors, has issued a strong advisory to major FMCG companies, urging them to stop supplying products to quick commerce platforms until pricing disparities are resolved. The federation claims that heavy discounting strategies by platforms such as Zepto, Blinkit, Swiggy Instamart, and BigBasket are negatively impacting the traditional supply chain.
According to AICPDF, these platforms are offering discounts of 15–50%, significantly undercutting the margins of traditional distributors and Kirana stores. Distributors allege that quick commerce partners are sourcing directly from FMCG giants and are being allowed to operate with deep discounts that are unsustainable for traditional retail models. The federation warned that if companies fail to act by April 30, it will initiate a nationwide blackout of product distribution from May 1.
“These platforms are not just offering customer discounts but also eating into our margins while selling at rates below distributor pricing. This disparity is pushing conventional retailers and distributors towards financial stress,” AICPDF said in its official statement.
Brands mentioned in the advisory include industry leaders such as Hindustan Unilever, Nestlé, Colgate-Palmolive, Procter & Gamble, Dabur, Reckitt Benckiser, and Marico. FMCG firms have increasingly turned to quick commerce as a high-growth channel, especially in urban centers, given its ability to meet consumer demand for instant delivery. The segment has grown rapidly in the past two years, with some platforms now expecting profitability in the near term, a shift from earlier years of sector-wide cash burn.
However, the AICPDF argues this growth is coming at the expense of traditional sales channels, which still form the backbone of FMCG distribution in India. The federation has proposed a pause on supplies to these platforms until a fair trade policy and pricing parity are ensured across all sales channels.
This standoff places FMCG companies in a challenging position: balancing the need to support innovative, high-growth retail formats while maintaining the stability and sustainability of their traditional distribution networks. The outcome could drive significant shifts in pricing strategy, retail partnerships, and route-to-market models across the sector.