Resellers boycott distys, seek NACIT's intervention

Major trade associations across the country have boycotted the top three distributors for introducing "handling charges" of Rs 3 per kilogram.

After a series of meetings, Mumbai-based TAIT took the decision that none of its members will deal with any of the distributors levying the handling charges. Similar decisions were taken by associations in Nagpur, Jaipur and New Delhi.

Seven major resellers in Nagpur have approached National Association of Channels of Information Technology (NACIT) to intervene in the issue regarding the imposition of Rs 3 per kg handling charges by distributors. The partners, Mayur Coolers, Silver Systems, Datatronics, Cable House, Key Computers, Vidarbha Infosys and Business Algorithms, had earlier met with local branch managers of Ingram Micro, Tech Pac and Redington for the cancelation of these additional charges.

However, with no positive outcome to this meeting, the partners have suspended purchases from these three national distys since 27th October and will continue the boycott, till the decision on handling charges is reversed. They are procuring goods from other distys or directly from the vendor. This issue has now been forwarded to NACIT which has already begun unofficial talks with the three national

distys. 

According to estimates, these distys sell over 2 lakh monitors every month and stand to gain Rs Rs 12 crore as an additional

monthly revenue. At the moment, distys are charging this price only on certain products. But partners fear that this is just the beginning and soon all products will be covered under the handling charges. 

Distributors introduced these charges claiming that their overheads were going up and they find it hard to meet their expenses. Says Sudhir Budhay, Propreitor of Business Algorithms, "This surcharge has been introduced without giving any additional services or discount in the product prices. If distys find their profitability going down in spite of increased business volumes, it is their inefficiency and dealers should not be penalized for the same." 

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