FMCG companies leave flood-hit traders in lurch

Special Correspondent

Only cloth manufacturing firms asked dealers to return damaged stocks

Traders of other products sought government’s help to bail them out of crisis

KURNOOL: The Fast Moving Consumer Goods (FMCG) companies, whose dealers suffered an extensive loss in the recent Tungabhadra flood in Kurnool city, are understood to have not come forward to share the burden.

Most of the dealers forwarded the loss to the head offices, but there has been no response yet from any of the company. A dealer in electronic goods, who pooled stock worth Rs. 90 lakh on the eve of Deepavali for a special package, sale got the entire stock drenched in the flood.

The company officials advised the dealer to notify the loss to the head office, but indirectly told him that they might not be able to share his burden.

The dealer told The Hindu that he was willing to bear 30 per cent of the burden if the company accepted his request for recycling the products at its manufacturing facility.

In another case, a mobile phones dealer lost the stock worth Rs. 20 lakh. The company communicated to him that they would not be able to help him out. According to reports, the pharma business lost stock worth Rs 9.5 crore, which could not be retrieved in any form.

Also, the FMCG and electronic goods business lost Rs 20 crore, beedi and cigarette industry 5 crore, cloth business Rs 3 crore. So far, only the cloth manufacturing companies asked the dealers to return the stocks to the manufacturing bases, which could be recycled with some cost. The traders of other products made an appeal to the government to negotiate with manufacturers for bailing out the traders as part of their flood relief measures.

Apart from helping the flood victims by donating food and clothes, the corporate sector should also be asked to take care of the their dealers who were part of the business. The pulses and food grain traders suffered loss to the tune of Rs. 25 crore as their entire base was located in the flood-ravaged old city.

he direct loss to the business sector on account of loss of goods and products would be over Rs. 100 crore apart from the loss to the infrastructure and residential areas. The pulse traders who stocked a huge quantity of dal unauthorisedly were unable to notify the loss.

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