Bengal has received close to 100 applications from direct selling companies for enrolment, underlining the interest from the sector to carry out business in the state.

The consumer affairs department of the state has taken this initiative to monitor the direct selling industry and usher in the much needed transparency in the sector.

“For monitoring, enrolment is necessary. It was launched today. They (direct selling firms) will be inspected and then be enrolled,” Roshni Sen, secretary in the consumer affairs department, said.

Bengal is among eight states which have notified guidelines for monitoring direct selling agencies since the Centre notified rules for the industry in December 2021.

The Consumer Protection (Direct Selling) Rules, 2021 provided for monitoring by the state government. Every state government is required to set up a mechanism to monitor or supervise the activities of direct sellers and direct selling entities. Sen added that the consumer affairs department has launched the page on direct selling on the department website.

She was speaking at a conference of the Indian Direct Selling Association, a body of 18 top companies, which felicitated achievers in the industry from this state. Bengal is the second largest market for direct selling business in India and the state has remained on this perch since FY2019.

According to IDSA, the size of the direct selling industry in Bengal stood at Rs 1,984 crore in 2021-22, which is the latest figure available. Maharashtra is the top state in terms of revenue generated by this industry. The Indian direct selling industry was pegged at Rs 19,020 crore in 2021-22. The IDSA members accounted for about 55 per cent of the revenue. The revenue grew by 5.3 per cent over FY2021.

The wellness and nutraceutical category contributed 59 per cent of direct selling business in India, followed by 22 per cent by the cosmetics and personal care category. Herbalife is the top player in India, followed by Medicare and Amway.

IDSA believes that India has a clear growth runway ahead if the states frame the guidelines for monitoring the industry. Kerala has so far come up with the most exhaustive guidelines so far.

The IDSA is working with the National Law School of India University, Bangalore, to develop a homogeneous framework, IDSA chairman Rajat Banerji said.