Distributors of FMCG products have called off the blockade against Hindustan Unilever Ltd after the company assured that their concerns would be addressed soon.

The distributors will, however, continue their agitation against Colgate Palmolive, as the company has so far not initiated any talks to defuse the situation.

The All India Consumer Products Federation (AICPDF) met HUL executives on Tuesday to iron out the differences. According to AICPDF, the HUL management reassured the distributors that the issues raised by the distributors would be appraised by the company. In light of this, AICPDF has decided to suspend the agitation against HUL and has given the company three months to improve market conditions for the distributors.

If the situation remains the same, the distributors will restart the agitation.

Price parity issues

The consumer body had decided to block HUL’s products in Maharashtra after the company refused to engage with it on issues regarding price parity between traditional distributors and organised B2B players.

AICPDF’s chief patron PM Ganeshraam told BusinessLine , “Colgate Palmolive will be given another chance to meet with the association; should they refuse, the association will decide whether to involve the rest of the states in the blockade of Colgate products in the next 1-2 days.”

Colgate Palmolive said in a statement to the stock exchange that though it has not engaged with the AICPDE, the company is interacting directing with its distributors to resolve their challenges.

“General trade continues to be our largest channel and our distributors (redistribution stockists) are and will serve the needs of our consumers across India. HUL remains fully committed to ensuring that our distribution partners earn a fair return on their investments and work collaboratively in enhancing their capabilities to make them future-fit,” said a HUL spokesperson.

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