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

    • Pharma Circle needed

      Read this everyone. Pharma companies and traders are playing with our lives. 10 kids dead because of a bad cough syrup. Where are the regulators. Most drug inspectors filling their pockets. ...

      By Reeta Kumar
      /
    • Is FastTag really helpful or the only business of issuer banks/ agency?

      FastTag is now a days mandatory on NHAI Toll road. It is good but there is no real benefit by travelers. As FasTag issuer are taking deposit of about Rs 200 against tag issued by them which will b...

      By Anonymous Circle member
      /
    • OTP Frauds - learn all about it

      One Time Password (OTP) thefts are most common social engineering frauds and the most common form of Phishing frauds in India. People from both urban/rural areas are prone to this type of frauds. L...

      By Anu Kaur
      /
    • Coronavirus Impact

      Circle Members your survey is in papers today. Insightful but my query is 41% of us are cautious about summer travel. That will crash the economy. Also concerning that paracetamol prices...

      By Shikha Chhabra
      /
    • Met fraud online company ,

      I booked some flowers chocolate n greeting card on FLABERRY (Online flower booking site) for my husband on 3 Feb and mentioned delivery date 14 Feb , before booking I confirmed the delivery area. I...

      By Garima Yadav
      /
    • Whatsapp is reading pictures we send

      This morning I sent a picture of chocolate to my sister wishing her valentines day. 10 minutes later I was accessing a content download site. I saw another chocolate variant ad (attached) pushed to...

      By Sandhya Agarwal
      /
    • ecommerce discounts seem to be going away

      it seems that ecommerce has stated to take a hit in India atleast phone sales. iphone xr is now cheaper in India at stores after the 10% additional discount many stores offer. The discount is not a...

      By Manju Patel
      /
    • Online sellers paying for reviews

      The online sellers now lure consumers to give them 5 star and offer money for it. See attached that come out from a box. Consumer laws should discourage such practices. Kindly look into ...

      By Kajal Singh
      /
    • WhatsApp being allowed launching payments in India.

      I saw news that WhatsApp Pay will start payments for everyone. How? Were they not caught in Pegasus Scam. From what I know and understand WhatsApp data more important the chats were stolen. If they...

      By Siddhartha Roy
      /
    • Vulgarity in Advertising at Auto Expo

      Please see attached how women are used as show girls at auto expo. They get many more stares than the cars. Can the Govt lay some norms for advertising in shows/exhibitions. Same thing apply for th...

      By Sneha Goyal
      /
    • 450,000 Credit Card records compromised

      Can someone please advise how does this happen. How do 4.5 lakh credit card records of Indians get compromised. Did the hack happen from an overseas server or an Indian server. Who is responsible a...

      By Harsimran Kaur
      /
Share
Enter your email & 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

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)