EXCLUSIVE: Parle products, distributors likely to hold fresh talks next week over expired stock disposal issue - DETAILS

A fresh round of discussions is likely to take place next week between Parle Products and its distributors to address the ongoing dispute linked to the disposal of expired and damaged products, sources told ET NOW.

According to sources, the company has already held one round of talks with distributors regarding concerns over expired inventory and unsold stock lying across the market. However, the matter remains unresolved, prompting both sides to prepare for another meeting in an attempt to break the deadlock.

The dispute revolves around allegations made by distributor bodies regarding the handling of near-expiry and damaged products in the FMCG supply chain. Distributors have reportedly claimed that expired and damaged stock worth nearly Rs 100 crore is currently lying in the market.

Industry representatives have also raised concerns about the possible public health risks associated with expired chocolates, confectionery products, chips, and namkeen items if they are not scientifically destroyed. They fear that such products could potentially re-enter the market if proper disposal mechanisms are not followed.

Sources said distributors have further alleged that non-moving and near-expiry products were pushed into distribution channels, increasing the financial burden on retailers and distributors. Concerns have also been raised over the alleged bundling of products that were difficult to sell in the market.

The issue has once again highlighted gaps in recall and disposal systems within the FMCG sector. Distributor associations are reportedly seeking stricter accountability from manufacturers for the withdrawal and destruction of expired goods.

Among the key demands being discussed are the creation of a standard operating procedure (SOP) for periodic collection and scientific destruction of expired products, along with a traceable and auditable disposal mechanism.

The matter is also expected to draw the attention of food safety and consumer protection authorities, given the concerns around compliance and consumer safety.

Meanwhile, Parle Products is yet to respond to queries sent by ET NOW regarding the issue.