MRP As We Know

Consumer Voice - - Mrps -

Well, the gov­ern­ment does not de­cide the price of any­thing made by a pri­vate man­u­fac­turer. The MRP is fixed by the man­u­fac­turer and is mostly in­clu­sive of taxes un­less oth­er­wise men­tioned. Thus, when a con­sumer buys a pack­aged com­mod­ity in the mar­ket, s/he is re­quired to pay the MRP as in­di­cated on its pack­ag­ing.

The ra­tio­nale be­hind print­ing the MRP on prod­ucts is to pro­tect the con­sumer from be­ing over­charged by re­tail­ers. No doubt the MRP does its job well in in­form­ing con­sumers about the 'fair price' of a prod­uct, but it fails to give re­tail­ers the much-needed flex­i­bil­ity in de­ter­min­ing the price based on var­i­ous fac­tors – ser­vices of­fered, lo­ca­tion of the store – that de­ter­mine the ac­tual cost of a prod­uct for a re­tailer.

MRP un­der Legal Metrol­ogy Act – What We Must Know

Ac­cord­ing to Rule 6 (1) (e) of the Legal Metrol­ogy (Pack­aged Com­mod­ity) Rules, ev­ery pack­age meant for re­tail sale should men­tion the re­tail sale price. The re­tail sale price has been de­fined in Rules 2 (r) as fol­lows: Re­tail sale price means the max­i­mum price at which the com­mod­ity in pack­aged form may be sold to the ul­ti­mate con­sumer and where such price is men­tioned on pack­age, it should be printed in the words: ‘Max­i­mum re­tail price’ or ‘Max re­tail price, in­clu­sive of all taxes’ or ‘MRP Rs, in­clu­sive of all taxes’ or ‘MRP Rs incl. of all taxes’.


For the pur­poses of the clause ‘max­i­mum price’ in re­la­tion to any com­mod­ity in pack­aged form, it shall in­clude all taxes lo­cal or oth­er­wise, freight, trans­port charges, com­mis­sion payable to deal­ers and all charges to­wards ad­ver­tise­ment, de­liv­ery, pack­ing, for­ward­ing and the like, as the case may be; Rule 23 men­tions pro­vi­sions re­lat­ing to whole­sale dealer and re­tail deal­ers.

Pro­vided that pub­li­ca­tion in any news­pa­per of such re­vised price shall not be nec­es­sary where such re­vi­sion is due to any in­crease in, or im­po­si­tion of, any tax payable un­der any law made by the state leg­is­la­tion: Pro­vided fur­ther that the re­tail dealer or other per­son shall not charge such re­vised prices in re­la­tion to any packages ex­cept those packages which bear mark­ing in­di­cat­ing that they were pre-packed in the month in which such tax has been re­vised or fresh tax has been im­posed or in the month im­me­di­ately fol­low­ing the month afore­said;

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