Anti-profiteering contours are clear but implementation difficult for FMCG: Dabur

The investigation arm of the revenue department has sent notices under the goods and services tax (GST) anti-profiteering law to three entities, including Hardcastle Restaurants and retail shopping outlet Lifestyle and some of the stockists of Hindustan Unilever (HUL) for not passing the benefit of cost reduction to consumers.

In an interview to CNBC-TV18, Sunil Duggal, CEO of Dabur India and MS Mani of Deloitte India shared their take on the same.

Duggal said that contours of anti-profiteering rule are fairly clear but implementation is difficult for fast moving consumer goods (FMCG).

He further said that there are conflicting laws with regards to pricing in lower value FMCG products.

According to him, scrutiny should be for the entire distribution chain.

Deloitte's Mani said that we do not have any mechanism to determine whether price cuts have been passed or not.

"I would say a strong law needs to be supported by very strong and clear implementation rule," he added.

For entire discussion, watch accompanying video.