Thoppumpadi: Small scale traders are under crisis as Reliance have taken up the distribution of ‘Kera’ coconut oil, a product of Kerala government’s Kerafed.
There were 125 distributors for the distribution of Kera coconut oil in the state. The distribution was done through 38,000 small scale traders. The traders used to get a profit of nine percent. However, these small scale traders were affected once Reliance was handed over the distribution responsibilities of Kerafed. Reliance gives a margin of 14 percent for this product.
Since Reliance has its own outlets and market system, it will be able to distribute the product to consumers at a lower cost. The small traders will not be able to compete with them. They cannot sell the products at a lesser margin, like Reliance does.
Distribution Association representatives said that small scale traders will be the most affected when companies like Reliance takes over the distribution of products and that the government should try to help these traders instead.