FRAI Warns Unfair Market Practices Are Threatening Livelihoods of Small Traders

Hyderabad, May 22 (KNN) The Federation of Retailers Association of India (FRAI) Telangana Chapter has expressed concern over the growing incidence of illicit trade, counterfeit products and unfair market practices.  
 
The trade body has warned that these trends are posing significant challenges to small retailers and traditional businesses across India.
 
The concerns were raised during a seminar on ‘Confronting Illicit Trade in Modern Markets’ held in Hyderabad, where retailers, trader associations, policymakers and industry representatives discussed the impact of counterfeit goods, illegal distribution networks and aggressive market practices on the retail sector.
 
Participants said the rapid expansion of quick commerce and e-commerce platforms, while improving consumer convenience, has also heightened the risk of counterfeit, non-compliant and illegal products entering the market. 
 
Deep Discounting, Predatory Pricing Under Scrutiny 
 
Industry representatives argued that deep discounting, predatory pricing, flash sales and ultra-fast delivery models are creating an uneven competitive landscape for small retailers, affecting business sustainability and consumer trust.
 
They noted that growing consumer demand for lower prices and instant delivery can be exploited by illicit traders, while the delivery of products ranging from groceries and personal care items to electronics and premium smartphones within minutes makes it harder for buyers to verify authenticity. 
 
According to stakeholders, weak monitoring mechanisms and aggressive discount-led competition have further increased the risk of counterfeit goods reaching online marketplaces.
 
Participants also emphasised that while technology and innovation are vital for the retail sector’s growth, market expansion should remain fair, transparent and inclusive.
 
FRAI Calls for Stronger Oversight and Fair Competition 
 
Addressing the gathering, Tariq Ansari, Chairman of Telangana State Minorities Commission, said illicit trade and unfair market practices are emerging as major concerns for both consumers and legitimate businesses. 
 
He urged authorities to strengthen enforcement measures, curb illegal supply chains and provide policy support to protect genuine traders.

R. Sanjay Kumar, Assistant Commissioner of Police, Hyderabad,  highlighted the growing public safety and law enforcement challenges posed by counterfeit products and illicit trade. 
 
He stressed the need for greater consumer awareness, stronger enforcement mechanisms and closer cooperation among authorities, businesses and citizens.
 
Speaking at the event, Mohammad Salahuddin Dakhni, President, Telangana State Chapter, FRAI, said small retailers and kirana stores form the backbone of India's local economy but are facing increasing pressure from unfair market practices and the proliferation of counterfeit goods.
 
He noted that predatory pricing, deep discounting and the rapid expansion of digital commerce platforms are distorting competition and threatening the livelihoods of small traders.
 
FRAI, which represents more than two lakh micro, small and medium retailers in Telangana and supports the livelihoods of over 10 lakh retailers and their families, called for stronger regulatory oversight and policies that ensure fair competition.
 
The seminar concluded with a collective appeal to policymakers and industry stakeholders to strengthen measures against illicit trade, eliminate counterfeit products from online retail channels and create a level playing field for small retailers and traditional businesses.
 
(KNN Bureau)