FRAI raises concern over illicit trade, unfair e-commerce practices

The Federation of Retailers Association of India (FRAI) on Wednesday, June 10 expressed concern over the growing incidence of illicit trade and unfair market practices, urging the government to take steps to safeguard the interests of retailers across the country.

The concerns were raised during a seminar on "Confronting Illicit Trade in Modern Markets" held in Guwahati, where industry representatives, stakeholders and prominent personalities deliberated on challenges affecting India's retail ecosystem.

Participants at the seminar highlighted the increasing circulation of counterfeit products, illegal distribution networks and non-compliant goods in markets. They noted that such practices not only undermine legitimate businesses but also adversely impact consumers and the broader economy.

The discussion also focused on the growing challenges posed by certain e-commerce business models. Speakers pointed to issues such as predatory pricing, deep discounting and rapid expansion strategies, which they said were creating significant market imbalances and placing traditional retailers under pressure.

Addressing the gathering, FRAI Assam President Birendra Chandra Baishya said small retailers and kirana stores form the backbone of the country's local economy and community life. He stated that the rising prevalence of unfair trade practices in modern retail markets was creating serious challenges for traditional retail establishments.

Baishya cautioned that failure to introduce timely corrective measures could adversely affect India's long-standing entrepreneurial culture, which has supported generations of self-employed families. He stressed the need for policy interventions to ensure a fair and competitive business environment for all stakeholders.

The seminar concluded with calls for stronger enforcement against illicit trade, enhanced regulatory oversight and measures to create a level playing field between traditional retailers and emerging market players.