Now the arbitrariness of the shopkeepers will be controlled!
The central government is soon going to make a big change in the rules of the maximum retail price (MRP), so that the common people get transparency in the prices of goods and stop the arbitrariness of the shopkeepers. The government wants customers to understand how the price of any goods has been fixed. For this, the Department of Consumer Affairs has held an important meeting with industry organizations, consumer groups and tax officials on 16 May, in which suggestions were sought on this issue. Right now this plan is in the initial stages and the date of the next meeting has not been fixed but if these rules are implemented, then the picture of India’s retail market can change.
MRP game will be over, preparations to bring transparency
Currently, shopkeepers have complete exemption to collect any price up to MRP printed on packaged goods. That is, if the MRP of a goods is ₹ 1000, then the shopkeeper wants to sell for ₹ 800 or for ₹ 1000, it is his will. But the biggest question is, how is this MRP decided? Companies do not explain how they calculated this price. Now the government is preparing to tighten this loose system. The government wants MRP to be linked to the cost of making goods and marketing. Especially, strict guidelines can be made for everyday essential things, such as food items, medicines and other essential items.
What does the Legal Measurement Act say?
The Ministry of Consumer Affairs under the Legal Measurement Act, 2009 examines the weight, measurement and label on packaged goods. The aim is that customers should get the right information and protect their interests. But this law does not show any way to fix the price. That is, companies can decide the MRP on their own free will. Now the government is thinking of change in this Act. According to a source, a standard of cost will be set by taking suggestions from industry and consumer groups, so that MRP is not shown misleading. These rules will especially apply to the goods that common people use daily.
What happened in the 16 -May meeting?
On May 16, an important meeting was held under the chairmanship of Consumer Affairs Secretary Nidhi Khare. There was a long discussion on unfair prices. Industry organizations and consumer groups were asked to make suggestions that the prices are appropriate for customers and the current GST -like tax system. Some industry representatives expressed concern that if MRP is linked to the cost, some goods may disappear from the market, which will be damaged only to customers. At the same time, consumer organizations say that the government should ban practices like fake exemption and profiteering without imposing direct control over prices.
What is the real meaning of MRP?
It is necessary to print MRP on every packaged goods in India. But there is no such system in most developed countries. The market forces there fix the price there. In India too, the government does not usually control prices except essential items. But many times questions arise about MRP. For example, if the MRP of a goods is ₹ 5000 and it is sold for ₹ 2500 after 50% discount, then the question arises that why was such a high MRP printed? Is the shopkeeper earning profits even at ₹ 2500? Was this discount just to woo customers? The government is now preparing to bring new rules to answer such questions.
What is the purpose of change?
This proposal is not to control prices, but to make them more transparent. The government wants MRP to be fixed on the basis of the right cost and limited profit of a goods. If this change applies, then it will be a big step for the retail market of India. Customers will understand whether the price they are paying is appropriate or not. Also, the arbitrariness of the shopkeepers will also be curbed.