FMCG Distributors Seek Margin Reforms, Warn of Nationwide Action

The All India Consumer Products Distributors Federation (AICPDF), representing over 4.5 lakh distributors across 25 states, has issued a nationwide ultimatum to FMCG companies, demanding urgent revision of distributor margins by July 30, 2026. The federation cited shrinking margins of 3.5–5% amid rising costs of fuel, warehousing, labour, and technology, making operations increasingly unviable. According to AICPDF, nearly 30% of distribution territories have already exited the business. The body has called for revised margins, logistics support, and an end to aggressive inventory loading practices. Warning of potential protests in August, AICPDF said failure to address these concerns could disrupt product availability and rural market penetration across India.