Kirana Stores Under Pressure From Quick Commerce Discounts; Will FMCG Giants Stem the Tide?

India’s Fast-Moving Consumer Goods giants, including Dabur, Nestlé, Coca-Cola, and Tata Consumer Products, have recently reached out to their retailer networks, aiming to reconnect by offering broader product assortments, improved supply chains, and increased retail margins. This comes as retailers raise alarm over the “grave concerns” posed by quick commerce platforms such as Zepto, Blinkit, BB Now and others.

For the past two months, the All India Consumer Products Distributors Federation (AICPDF), which represents over 450,000 members and 13 million kirana stores, has been raising concerns over deep discounts provided by quick commerce companies.

In an open letter to FMCG companies dated June 9, the retailers’ body stated that “the ongoing and unchecked flow of heavily discounted stocks from modern trade and e-commerce platforms, including but not limited to quick commerce companies, into the general trade market” is a grave concern for them.

“The alarming scenario unfolding on the ground points to two possibilities: either your esteemed companies are deliberately ignoring this practice, or worse, are being misled by these platforms that are misusing their purchasing power to obtain bulk discounts. These entities, under the guise of driving direct sales, are redirecting large volumes of stock into the general market at unsustainable discounts,” the AICPDF said.

What Are Retailers Concerned About?

AICPDF alleges that some quick commerce companies are inflating their Gross Merchandise Value (GMV), possibly to appear “attractive for upcoming IPOs.” While this may temporarily boost valuations, it comes at the cost of market discipline, brand value, and the traditional retail ecosystem, built over decades, they added.

As a result, Market Operating Price (MOP) parity the idea that the same product sells at a consistent price across different channels has broken down. Distributors are struggling to explain price discrepancies to customers or to match them. General Trade (GT) sales are reportedly falling sharply.

This puts the traditional distribution model under serious stress. Many long-standing distributor networks are close to collapsing. Good distributors, once trusted and vital partners, are now becoming rare, AICPDF added.

This isn’t the first time a traders’ body has raised red flags over fast-delivery online platforms. In October 2024, AICPDF claimed that the rapid growth of quick commerce had forced nearly 200,000 kirana stores to shut down. General trade suffered, with Diwali sales between July and October falling by 25–30%. Echoing these concerns, the Federation of Retailer Associations of India (FRAI), which represents around eight million small retailers, issued a warning in December 2024. It urged companies and regulators to support kiranas by improving their access to digital tools and infrastructure, warning that the traditional retail model is at risk of collapse without urgent intervention.

A report by Bain & Company and Flipkart in May 2025 put the “dramatic rise of quick commerce” into perspective. It noted that in 2024, more than two-thirds of all e-grocery orders and one-tenth of total e-retail spending occurred on quick commerce platforms.

“Q-commerce is forecast to grow by over 40% annually until 2030, fuelled by expansion across categories, geographies, and customer segments. Players have also unlocked a profitable model to scale up, blending customer-facing and back-end initiatives. The space is becoming increasingly competitive, with new entrants such as Flipkart Minutes, Myntra’s M-Now, BigBasket’s BB Now, and Amazon’s Tez joining the race,” the report said.

FMCG’s Offer to Kirana Stores

Dabur’s CEO, Mohit Malhotra, recently met with the All India Consumer Products Distributors Federation (AICPDF) in Mumbai. According to the company’s statement, he reaffirmed their “commitment to our General Trade stockist family.”

“As we roll out our refreshed Vision strategy to drive sustainable double-digit growth by FY 2027–28, we’re doubling down on what matters most: empowering our partners. From smarter tools and predictive analytics to faster onboarding and simplified claims, we’re making it easier, faster, and more rewarding to do business with Dabur,” the company stated on LinkedIn. Dabur has introduced predictive analytics for demand forecasting to support retailers.

Similarly, Coca-Cola is enhancing its digital self-ordering platform called the “Coke Buddy Platform.” Parle has shortened its replenishment cycles, and Nestlé India is expanding its direct retail reach. Tata Consumer has increased trade margins on select brands, while Reliance is offering wider product ranges and better margins to kirana partners. But is it enough?

What Are Retailers Demanding?

In its letter, AICPDF wrote, “The responsibility of maintaining MOP integrity rests entirely with the principal company, as you own the brand and the market identity it carries. When third-party platforms devalue your brand through unsanctioned discounts, they are not just disrupting trade — they are degrading the brand’s perceived worth and reliability in the eyes of the consumer.”

AICPDF has called on all FMCG companies to include two essential clauses in distributor agreements, with formal implementation required by September 30, 2025.

First, MOP Protection Clause, which mandates uniform Market Operating Prices across all sales channels. If any channel, including e-commerce, quick commerce, or modern trade, sells below the declared MOP, the company must compensate distributors for losses.

Second, Market Damages Collection Rights Clause, which grants distributors the right to return damaged or unsellable goods and receive timely compensation or stock replacement, through a clear, contractually defined process. AICPDF warned that after September 30, it will only permit collection of market damages if this clause is implemented and it will take action against companies that violate distributor rights.