Lok Sabha Question No. 1778 (UNSTARRED), answered on 2016-03-08
Subject: Higher MRP
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: AJAY TAMTA, CHANDU LAL SAHU

## Government of India Ministry of Consumer Affairs, Food and Public Distribution

## Department of Consumer Affairs

## LOK SABHA

## UNSTARRED QUESTION NO. 1778

TO BE ANSWERED ON 08.03.2016

## HIGHER MRP

1778.  SHRI AJAY TAMTA: SHRI CHANDU LAL SAHU:

## Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC  DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether some companies are reportedly printing very high Maximum Retail Price (MRP) on their products thereby circumventing the requirement of MRP;
- (b) if so, the details thereof along with the norms for fixing the MRP of various products being sold in the market;
- (c) whether  there  is  any  limit  on  production  cost/selling  price  and  the  extent  of  profit  that  can  be charged thereon, if so, the details thereof and if not, the reasons therefor;
- (d) whether the Government regularly monitors the Maximum Retail Prices of the products being sold in the market so as to protect the interest of the consumers, if so, the details thereof and if not, the reasons therefor; and
- (e) the provisions available presently and the action proposed to be taken to check such practices?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=ky; ea=h ¼Jh jke foykl ikloku½

## THE MINISTER FOR

## CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI RAM VILAS PASWAN)

(a) to (c) : No Madam, prices of the products and commodities are determined by the market forces. It  is  not  feasible  for  the  Government to fix the cost/sale price (MRP) and the extent of profit of  such commodities which are  sold through open  market competition. Therefore, the Maximum  Retail Price (MRP)  of  such  products  sold  in  the  country  is  determined  by  the  Manufacturers/packers/importers themselves. Also is not feasible for the Government to limit the production cost/selling price and the extent of profit that can be charged thereon.

- (d) & (e) : Madam,  the  Legal  Metrology  (Packaged  Commodities  )  Rules,  2011  have  been  made under the provisions of Sec. 18 of the  Legal Metrology  Act, 2009. As per Rule (2) of the  said rules provisions are made to prevent the sale of any pre-packaged commodity at a price higher than MRP, which are as follows:

' No retail dealer or other person including manufacturer, packer, importer and wholesale dealer shall make any sale of any commodity in packed form at price exceeding the retail sale price thereof'.

Rule 32 of the said Rules provides for compounding amount for selling of products for more than the Maximum Retail Price.

Section 36 of the Legal Metrology Act, 2009 provides for penalty provisions in case of violation of the provisions of the Act and the provisions of the Legal Metrology (Packaged Commodities) Rule, 2011.

Therefore, under the provisions of the Legal Metrology Act, 2009 and the Legal Metrology (Packaged Commodities)  Rules,  2011,  State  Governments  are  taking  action  against  the  manufacturer,  packer, importer, wholesale dealer and retailer for selling packaged commodities at the price higher than MRP in various States/UTs, as the enforcement of weights and measures is done by the State Governments.

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