Karnataka Retailers Warn of Illicit Trade and Market Distortion
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Karnataka Retailers Warn of Illicit Trade and Market Distortion

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Karnataka Retailers Warn of Illicit Trade and Market Distortion

The Karnataka State Retail Traders Welfare & Development Association organized a seminar titled “Confronting Illicit Trade in Modern Markets” on Tuesday. Retailers, trader associations and policymakers gathered in Bangalore to discuss the growing threats of illicit trade and unfair market practices that are reshaping India’s retail ecosystem.

Participants voiced concern over the proliferation of counterfeit goods, illegal distribution channels and non‑compliant products, as well as predatory pricing, deep discounting and the unchecked expansion of quick‑commerce and e‑commerce models. These practices create severe imbalances for small retailers and traditional businesses.

The seminar emphasized that illicit trade and unfair practices harm genuine businesses, erode government revenues, undermine consumer trust and threaten the livelihoods of hundreds of thousands of small traders across Karnataka. Counterfeit and illegally sourced products expose consumers to substandard and unsafe goods and undermine the credibility of legitimate businesses operating within the law.

B.N. Murali Krishna, president of the association, said the issue has become a threat to consumer safety, fair competition and the livelihoods of honest retailers. He pledged that the association will work closely with the government, law‑enforcement agencies and industry stakeholders to strengthen enforcement, raise consumer awareness and build a transparent retail ecosystem. The meeting was attended by Minister for Small Scale Industries & Public Enterprises Vijayananda Kashappanavar, Minister for Food, Civil Supplies and Consumer Affairs Rizwan Arshad, retired ACP B.K. Shivaram and Joint Controller of Legal Metrology C. Govindappa. The association represents over 200,000 micro, small and medium retailers and the families of more than 500,000 of the poorest traders.

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