Petition presented to the CM of Kerala
In a bid to address pressing concerns and safeguard the interests of the distributor fraternity in Kerala, the All Kerala Distributors Association State President Sree Mujeebur Rahuman has forwarded a crucial petition to the Hon Chief Minister Sree Pinarayi Vijayan. The petition underscores the myriad difficulties encountered by distributors in the state, shedding light on critical issues plaguing the distribution ecosystem.
Chief among the challenges outlined in the petition is the rampant proliferation of parallel trade through unauthorized channels. This clandestine practice not only undermines the legitimate distribution network but also poses significant threats to consumer safety and product quality. By bypassing established channels, parallel trade disrupts market equilibrium and jeopardizes the integrity of the distribution system.
Furthermore, the petition highlights the adverse impact of heavy discounts offered by modern trade outlets, leading to substantial revenue losses for the government. These discounts, while attractive to consumers, contribute to a distortion in pricing dynamics, undercutting the competitiveness of traditional distributors. The resultant tax evasion undermines the state's fiscal health and necessitates urgent intervention to rectify the imbalance.
Another critical issue underscored in the petition pertains to the exploitation of the market by criminals engaged in smuggling illicit substances disguised within genuine FMCG products. This nefarious activity not only compromises public health and safety but also erodes consumer trust in branded goods. The infiltration of illicit substances underscores the urgent need for enhanced regulatory measures and collaborative efforts between stakeholders to combat such illicit practices effectively.
The petition also pointed out the possibility for adoption of a pro rata allocation model for CSR funds in Kerala. By making it obligatory for corporates to invest a portion of their CSR contributions back into the state, Kerala can harness these funds for meaningful local development and sustainability initiatives.
The petition also advocates for the imposition of a plastic usage cess rather than enforcing a complete ban on plastic. This approach recognizes the practical challenges and economic ramifications of an outright ban, especially for industries and consumers reliant on plastic for packaging and other purposes. By implementing a cess, the government can disincentivize excessive plastic use, encouraging businesses and consumers to explore eco-friendly alternatives. The collected funds from this cess would then be earmarked for environmental conservation projects, plastic waste management initiatives, and public awareness campaigns about the importance of reducing plastic footprints.
In light of these challenges, the petition implores the Chief Minister to take proactive measures to address the grievances of the distributor fraternity and safeguard the integrity of the distribution ecosystem. Proposed solutions include stringent enforcement of regulations to curb parallel trade, imposition of penalties for tax evasion by modern trade outlets, and enhanced surveillance to thwart criminal activities related to product smuggling.
Ultimately, the petition serves as a clarion call for concerted action to foster a conducive business environment for distributors while upholding consumer rights and ensuring market integrity. The Chief Minister's attention and prompt action on these pressing issues are paramount to fostering a fair and sustainable distribution landscape in Kerala.