The Federation of South India Distributors Association (FSIDA) is worried about the level of business activity in the country, , saying anything below a 20 per cent growth will endanger the survival of the distributor community.

Distributors are fewer compared to other traders and many operate on thin margins, forced to sell products at prices determined by their principals, said V Ayyappan Nair, president, FSIDA.

At a conference in Kochi, members of the federation said their day-to-day operations have been hit by slowing business and rising costs.

FSIDA urged the Central and state governments to set up statutory forums in every state, comprising selected state legislators and representatives of FMCG companies, to discuss the issues facing distributors and the trade in general and suggest a remedy.

Pointing out that distributors are an essential link in supply chain management, the federation says the laws ensure proper remuneration for their employees but do not secure the rights of distributors. Suppliers, too, do not support them, the members say.

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