We would like to seek your inputs on instances where a merchant/business is selling products at a price higher than the published MRP on the product. Kindly share specific inputs on the same. more
Regarding MRP, it has become mandatory to mark the net price inclusive of all the taxes on drugs after the DRUG PRICE CONTROLL ORDER ODF THE 70's ; later this practice followed to other commodities also to the relief of the consumer . Till then we were all in the dark. [D.P.C.O.] . The manufacturer gives the margin for the whole saler and retailer separately. When a retailer has a whole sale licence also he bags both the margins [normally it is 8 and 12 %. But the margins will also differ for different commodities and essentials items.] . You will always see the reataileres selling oil varieties and some other commodities are always sold at rates lower than the MRP. It is because the margin is very high. Government can step in here to fix the correct margins so that the traders don't get too much profit. more
The Question itself is wrong. MRP stands for Maximum Retail Price. But then why should every seller, retailer or otherwise, charge MRP rate to every customer? In fact, there should have been a Base Price declaration, inclusive of all the taxes, thereby letting the customers know the range for bargaining. When one moves away from large cities, one finds that in many places in the rural areas that the price charged is higher than MRP. In fact, those are the places, where the prices should be less than MRP. Dearness, housing and other allowances for government and private sectors differ from place to place, and yet each one has to buy products at MRP rate? Ridiculous. more
The concept of MRP (Maximum Retail Prize) stamping on packed goods was initiated by government to protect the interest of consumer whereas; it has become the easiest way to cheat purchaser. Various medicines in the market are being sold at 10 to 15% below MRP rate by medical shops which clearly indicates that the marked MRP was hiked multi fold. The medical shop owner is not there to do social service. Similarly, many shops and malls are selling products well below MRP and still gaining profit. All the business houses are earning rich profit every year but the poor consumer is suffering all along. Every now and then product MRP is revised and increased without any rational. It is not clear who decides MRP for packed products because it is always jacked up prize? If we review the history of prize rise, the prize trend has gone up steadily only after introduction of maximum retail prize concept. Hence it is high time we review it. The entire concept should be reviewed and a centralized prize controlling body should be constructed by the government, if not done earlier, to decide standard prize of various essential commodities, for benefit of consumers. Any violation of norms should be made punishable. Ramprasad Gargav more
Beverages are sold above MRP with explanation that they charge you more for cooling.All other products are invariably sold in tourist places ,railways stations , bus stations , airports higher than MRP.Some mechanism should be brought in to check this loot. more
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By Suresh Dasarathy
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