Govt panel mooting to ask cos to declare normative price
The government is looking at the possibility of asking the manufacturers of packaged commodities to declare a "normative" price, applicable in the entire country, in addition to the current practice of printing the Maximum Retail Price (MRP).
By PTI |
NEW DELHI: The government is looking at the possibility of asking the manufacturers of packaged commodities to declare a "normative" price, applicable in the entire country, in addition to the current practice of printing the Maximum Retail Price (MRP).
A normative price would be based on the cost manufacturers incur in producing and making their products available to end-customers. While this price will reflect production and distribution costs, it would also be aimed at making consumers aware about potential excessive margins charged at various levels, such as distributors and traders.
The feasibility of such a price would be examined by an expert committee, set up by the Consumer Affairs Ministry last month. This panel is likely to hold its first meeting on Monday, government sources said.
The committee was set up after taking into consideration the prevailing methods of manufacturing and distribution of goods in India as well as the prevalent international practices in this regard, a source said.
The committee, under the chairmanship of Govind Rao, Director of National Institute of Public Finance and Policy, has been asked to submit its recommendation within six months.
As per the terms of reference, the expert committee will look into the "feasibility of declaring a normative price on a pre-packaged commodity, as applicable for the entire country, adequately reflecting the cost incurred by the producer in reaching the package to end consumer".
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