Price Fixing - Inputs on Root Causes

Dear Friends,

Price Fixing is something that Indian consumers suffer from quite often. When suppliers collude and agree to artificially raise prices to maximize profits, the consumer is negatively impacted.

Based on your inputs, below are the key issues related to price fixing.

Please review them and help outline the Root Causes for these Issues. Once done, we will review the Solutions in a separate post.

Our objective would be to submit a whitepaper on the subject to the consumer and competition bodies for due action.


Price Fixing – Issues

1. A nexus between wholesalers and retailers
2. The price of medicines are set high, which makes affordability difficult for the masses
3. No control on the prices of fruits and vegetables
4. Hoarding of items like grains, pulses and spices also leads to fixing of prices
5. It is a normal practice to offer 30% to 90% discount on crackers during Diwali on MRP. So MRP has no meaning
6. Mostly prices om imported computer items like hard disks pen drives memory cards etc. is always too much
7. Mediators play a major role in fixing prices
8. A farm produce becomes 10-20 times costlier when it reaches the retail customer
9. Customer has to shell out more money to buy a product that its actual cost
10. Goods become costlier and inflation rises more  

View all 27 comments Below 27 comments
1. From the simple farmer to the consumer , there are various un-intended stages involving additional forced cost to the consumer. Minimize or remove unnecessary stages which just enhance the cost, without any added value. more  
Unfair inputs are available Can we abolish the availability of unfair inputs These unfair inputs are the seeds of all these problems more  
Some years ago when we visited USA, we had to go to New York from Pittsburg,PA. We wanted to try the rail service as the journey involved only about 8 hours by train. My wife and I got some concession in trainfare being senior citizens. As soon as we approached the platform, one Railway employee in uniform approached us and collected our luggage,and carrying our luggage guided us to a good compartment kept the luggage in place and wishing us happy journey took leave of us. All free service and he never waited for any tips. Whereas recently in Bangalore we wanted to board the Mysore-Chennai Express at about 11 pm. I am aged 82 years and have orthritic knee pain and cannot afford to move fast in the platform. I enquired with the station master on duty where the AC II coach will be, whether in the front or at the back. He bluntly replied he cannot provide the information and asked to go to plarform No.5 and check with the porter. This is the attitude of railway employees in India. Can it be changed? more  
R P GUPTA JE: You need to be very soft and extra careful on PRICE FIXING FOR SENIOR CITIZENS. YOU can also study the other countries how much they are sympathetic and considerate for their Senior Citizens-dole, free facilities, respectful and convenient graceful WELCOME in the society. more  
1. Unregulated markets 2. Absence of healthy competition 3. Supply side constraints enabling price fixing 4. Monopoly/near monopoly in many products/services - including public sector 5. Rent seeking by license/permit givers causing high price fixing by the licensees to recover costs more  
Post a Comment

Related Posts


      During the Pandemic the Doctors and Paramedics have been hailed as Corona warriors and truly so. Many of the Doctors, I am sure have done tireless work in helping suffering patients. It ...

    • ATM charge of 21 per transaction is a bad move

      ATM transactions will get costlier from January 1, 2022 per the Reserve Bank of India new rule. Customers will have to pay Rs 21 plus taxes to withdraw cash. This is ridiculous. More

      By Amit Mishra
    • Major loot by App taxi drivers

      Friends one of our relatives faced this issues from international airport in Delhi. They booked an Ola at airport and when booking fare was 900. This was at 10 pm. When the driver dropped them in ...

      By Kajal Singh
    • Misleading consumers on Rt-pcr - Abbott

      Abbott ID NOW at airports costs ₹4500. Some vendors & labs claims it’s rapid RT-PCR. Firstly, this is fleecing people & taking advantage of a public health measure to make travel safe...

      By Sarika Bansal
    • neglected issues of the old and poor.


      By Satyapal Singh
    • Telcos and carteling may be

      After Airtel and Vodafone, RelianceJio has hiked prepaid tariff by 20%. From December 1, the price entry-level plan will be 21% more expensive. The tariff of 11 other plans and four data packages w...

      By Vikram Gupta
    • Income Tax new site

      The Income Tax Department has launched new site where you can not fill your income data for the year from April 2020 to March 2021. After login to Income Tax site you are asked to revalidate the pr...

      By Anonymous Circle member
    • Carteling by telcos - Voda increases rates

      Airtel & now voda are on a full blown looting spree. Within 2 months they went from Rs. 39 to 79 to 99. So many domestic workers and other low income families have already stopped recharging th...

      By RN Chopra
    • Sub standard pressure cookers selling online

      Central Consumer Protection Authority has issued notices to e-commerce entities offering for sale Pressure Cookers in violation of compulsory BIS Standards. Notices have been issued to Amazon, Shop...

      By Sobhita D
    • Airtel raising tarrifs

      At a time when their quality is just pathetic, they decide to raise tariffs. And i am sure because of cartelisation the others two will do so too. Govt will likely be mute spectator and consumer th...

      By RN Chopra
    • Why is Localcircles not escalating inflation issues

      Potato- 40 Tomato 80 Beans - 100 Is what we are paying in east Delhi at attached redi. Good quality in good store is 100 a kg for tomato. Please escalate this to ...

      By Neelam Bose
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)