Once again, everyday items are expected to be available in the market at popular prices of ₹2, ₹5, ₹10 and ₹20. This change is happening due to the reduction in GST rates by the government and the new instructions given to the companies after that. Now instead of selling old packs at lower prices, companies are bringing packs with slightly higher weight in the market at the same prices. This will not only provide relief to consumers but will also make it easier for shopkeepers and brands to return to the old system.
Problems increased due to GST cut
Following the GST rate cut that came into effect from September 22, companies faced difficulties due to unclear rules. Since the government did not clarify whether companies could compensate for lower prices by increasing weight or not, brands reduced their pack prices unevenly. For example, a ₹5 pack of Parle-G started selling for ₹4.45 and a ₹1 candy started selling for 88 paise. This caused problems to both shopkeepers and customers.
Confusion between consumers and shopkeepers
Due to these non-round prices, neither the customers nor the shopkeepers were satisfied. Customers faced difficulty in taking or giving change and many shopkeepers used to pay the difference by giving sweets or toffees. The full amount was taken from those making digital payments, which further increased the inequality and inconvenience.
Government gave solution, companies returned to old pack
Now the government has made it clear that if companies increase the weight of goods and sell them at old prices, then it will not be considered a violation of GST rules. After this clarification, big FMCG companies like Parle, Bisleri, Mondelez have started preparing new packs at the old prices. According to an ET report, Parle Products Vice President Mayank Shah said that now the packs of biscuits and snacks will have 11-12% more weight, but the prices will remain the same. New production has also started in the snacks industry because the pack does not require much change.
Amul awaits formal order
An ET report said that Amul has currently refused to return to its old prices. Amul’s Managing Director Jayen Mehta says that until the government issues any formal order, they will not change the grammes and prices of their products. He believes that the government’s objective was to provide direct benefits to the consumers and if the prices have to be kept the same only by increasing the weight, then the consumer will not get the clear benefit.
small changes, big impact
FMCG companies had earlier also reduced the weight of packets during times of inflation so that prices like ₹5 or ₹10 could be maintained. Now the same companies are trying to pass the benefits of GST cut directly to the customers. With this, customers will also be satisfied and shopkeepers will also find it easier to transact.