Gujarat FMCG Distributors Unite Over Rising Costs and E-Commerce Challenges
Over 1,000 Trade Leaders Gather in Ahmedabad for Gujarat Distributors Convention
‘Traditional Trade Under Pressure’: FGDA Convention Highlights FMCG Sector Concerns
Shrinking Margins, Retail Closures Dominate Discussions at Gujarat FMCG Convention
FGDA Convention Calls for Urgent Reforms to Protect Gujarat’s Distribution Network
Bilkul Bazaar
Ahmedabad | 18 May 2026
Amid growing concerns over shrinking margins and the rapid rise of e-commerce, the Federation of Gujarat FMCG Distributors Association Charitable Trust (FGDA) organized the ‘Gujarat Convention of Distributors’ at the AMC Community Hall in Prahladnagar, Ahmedabad. The convention witnessed an overwhelming response, with more than 1,000 distributors and trade representatives from all 33 districts of Gujarat, along with delegates from other states, participating in the day-long event.
The venue buzzed with energetic discussions, networking sessions, and passionate deliberations as distributors, retailers, and industry stakeholders gathered under one roof to address the evolving challenges faced by the FMCG distribution ecosystem. The atmosphere reflected both concern and determination, with participants united in their demand for policy support and sustainable business reforms.
Chief Guest Sunil Singh highlighted the importance of the distribution sector in India’s economy. Addressing the gathering, he said, “Distributors are the backbone of the country’s economy. Without a strong distribution network, the supply chain cannot function effectively. The government remains committed to the welfare, security, and empowerment of traders across the nation.”
He further added, “Traditional trade and distribution networks have played a vital role in India’s growth story for decades. Their concerns deserve immediate attention in the changing business landscape.”
FGDA President Arun Parikh emphasized the urgency of collective action and reforms within the sector. He stated, “The distribution business is passing through one of its most challenging phases. Rising operational costs and limited margins are making survival increasingly difficult for distributors.”
General Secretary Shriram Bakshi also addressed the gathering and stressed the need for stronger industry representation. “If timely reforms are not introduced, the traditional FMCG distribution structure will face severe disruption in the coming years,” he remarked.
During the convention, leaders and participants voiced serious concern over the financial pressures impacting the trade. Discussions revealed that distributor margins continue to remain restricted at nearly 5% despite rising transportation, warehousing, staffing, and operational costs.
According to industry representatives, more than 700 distributors across Gujarat have reportedly shut down operations in recent years due to mounting business challenges.
The rapid expansion of e-commerce and quick commerce platforms emerged as one of the key discussion points during the event. Industry leaders observed that the growing shift toward online purchasing has significantly impacted traditional retail businesses, with the market share of conventional retail channels reportedly dropping to nearly 70%. Participants claimed that over 100,000 retail outlets have shut down as consumer buying patterns increasingly move toward digital platforms.
The convention also witnessed intensive brainstorming sessions on critical trade concerns including category billing complications, rate and pack differences, and the declining sustainability of neighborhood retail stores. Experts and association members called for collaborative efforts between industry stakeholders and policymakers to protect the interests of distributors and retailers.
Several prominent business leaders and experts shared their perspectives during the convention, adding further depth to the discussions. Reputed brands such as Mahindra Last Mile Mobility, Mahalaxmi, and Shree Hari Masala participated as official event partners.
The event concluded on a positive and determined note, with distributors expressing confidence that stronger unity within the trade community would help the sector navigate current disruptions and emerge more resilient in the future.
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