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Published
Jan 14, 2022
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FMCG businesses struggle with pandemic-hit last mile delivery

Published
Jan 14, 2022

As India battles with the third wave of Covid-19, fast-moving consumer goods retailers are facing disruptions to last-mile distribution, as well as to imports of necessary products and materials.

Small, local shops are struggling the most with logistics issues - CAIT - Facebook


The Omicron variant has led to everything from weekend curfews in some states to 50% capacity retail rules in others and this, coupled with international supply chain disruption, is affecting FMCG distributors, wholesalers, and retailers, ET Bureau reported. The businesses most affected are those in cities that have particularly high Covid-19 case rates such as Delhi.
 
Logistics issues mean that some retailers experiencing high demand, as consumers stock up in case of further lockdown measures, but have more challenges to procure goods. Workers in the logistics industry falling ill is also affecting operations. 

“With rising cases, a few kiranas may shut down temporarily but demand will not be lost as consumers shift to other neighbouring stores,” said the All India Consumer Products Distributors Federation’s president Dhairyashil H Patil, the Economic Times Bureau reported. 
 
Numerous trade bodies such as the Confederation for All India Traders have complained about the gradual loss of local, domestic businesses with large, international businesses allegedly taking customers away from local traders. If local FMCG businesses struggle with materials and logistics, they may find themselves pushed out of the market by their large scale competitors, which have the funds available to absorb losses caused by the pandemic. 

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