In a strong letter to all top consumer goods companies written a fortnight ago, the association has said that "making direct supplies will have a negative impact on the turnover of distributors ...and all actions of these companies in destroying conventional traders should be put to an end".
The Kerala association has already received support of the national body of distributors - the Federation of All India Distributors' Association -, which is planning a nationwide stir.
Says C H Krishna, chairman, company affairs, Federation of All India Distributors' Association: "We are communicating to all members of our community in all states in the country, so as to put up strong resistance to the fearful situation ahead. If the big manufacturers supply goods directly to monopoly retail outlets, that too bringing in an unbalanced pricing structure, small and medium traders are sure to be doomed. We need to resist that."
Distributors in Kerala fear that the entry of retail biggies would force conventional traders to close shop as the pricing structure of consumer goods is likely to be extremely discriminatory.
"The association has intimated its concern to the consumer companies through a letter stating that the arrangements made by various manufacturing companies to supply products at special discounted rates to big retail outlets would only force small and medium traders to shut shop," said P Venkitarama Iyer, president, All Kerala Distributors' Association.
"We have also pointed out that even while supplies to big retail players are done through the present distributors, the distributors are being asked to follow the special terms of pricing and credit period that are unilaterally decided by the companies," he added.
This apart, the Kerala Vyapari Vyavasayi Ekopana Samithi, a powerful trader body, is already on the warpath against the retail biggies. The Samithi, under the auspices of the national-level Vyapar Mandali, is considering taking its agitation to the national capital in mid-September.
Meanwhile, C Divakaran, Kerala's minister for food and civil supplies, when asked about the All Kerala Distributors' Association's demands to the consumer companies, said: "We will not let any retail biggie take over the small and medium trader's business. The government will bring about a legislation, in a bid to regulate monopoly players".
The minister added, "The government will make sure that pricing levels and the like are the same at every shop. Those found violating norms will be booked on the spot. The legislation would provide for such strict measures."
Brushing aside the opposition to the entry of retail players, a Reliance Fresh spokesperson told Business Standard that the Kerala government's plans to bring in regulations is a welcome step as that would mean accepting their entry onto the scene.
"Moreover, a law would smoothen our operations as protests would no longer gain in strength," he said, adding that Reliance Fresh will go ahead with its plans to set up shop across the state.
