West Bengal will take a formal view of regulating direct selling business after the Centre comes up with the broad legal framework for regulation of the sector.
West Bengal Minister of Consumer Affairs, Sadhan Pande this said on Thursday at a FICCI State Council organised meeting on the business of direct selling.
He felt that some of the direct selling companies could consider setting up manufacturing units in the State or get into an arrangement with local small sector organisations for producing their items.
The Minister said these companies could look into cutting their costs by having a local unit, which could serve the eastern and north-eastern regional markets.
Bejon Mishra, advisor to FICCI task force on direct selling, said a State-specific draft regulation on the sector was submitted to the West Bengal Government.
Rajat Wahi, Partner & Head, Consumer Division of KPMG in India, said this was a legitimate business model. He felt discontinuation of the practice of taking a ‘membership fee’ a few years ago by the direct sellers from the consumers had made this channel cleaner.
“Now it is like a consumer loyalty programme. It gives the consumers a choice without binding them in compulsion of buying the directly sold products,” he added.