Inflation caused by different pricing of products at Kirana stores

POSTED BY ON October 31, 2013 9:29 am COMMENTS (3)

I wish to share something that I came across recently.

At my home they use Aashirwaad select atta MP. On a partcular sunday , there was a emergency and I procured it from my neighbourhood shop @ 340/- ( MRP 380/-). In the afternoon I enquired about the same at another place a Mall in close vicinity of my residence at secunderabad . Available @ 360/- ( MRP 380/-).

Imagine my shock and dismay when my father who had seen the emergency in the morning buying the same atta from another place a mall in Hyderabad @ 309/- ( MRP 380/-).

No amount of logic justifies this kind of a huge price difference in different outlets. Just goes to prove that the company has been selling without any ethics. Further since I am a regular consumer , I realised that the price of the atta has not gone up due to inflation rather has gone up to meet the exorbitant rise in margins for various retailers. I felt very bad and now feel that this is the reason spread to many items that is causing pains to a common man.

In the past also I noticed that the cola companies have also resorted to this kind with the result that the price of a 2.25 lts varied from Rs 33.33 to Rs 72/-.

What I wish to know is that if there is any government agency which keeps a watch on all these and does anything to correct this.

Our inflation worries could become deflation worries if the government agencies come down heavily on this. Importantly if would bring huge relief to the common man.


3 replies on this article “Inflation caused by different pricing of products at Kirana stores”

  1. says:

    Hi Manish,

    In my view it is the manufacturer ITC which is wrong here. They are selling their products at a price differential of 15% + ( 360-309=51)assuming the margins are the same for all the sellers. In todays scenario, competition being high, it is unlikely that the margin differential between retailers will be as high as 15%. . It is this differential pricing that is a problem here.

  2. Hi Bharat

    So according to you , who is wrong here ? the shopkeeper who is selling at low price or the other one who is selling at a little higher ? I think its all about MRP and how much margin one wants to keep . Depending on the competition , their own costs , one decides at what price one wants to sell it . Just that it should not cross more than MRP .

    thats my view .


  3. Anshuk Jain says:

    I don’t think Company is doing anything wrong.. it is up to the shopkeeper to decide how much discount he wants to give you. That is what is happening in online sites too.. Sites give you discount out of their profit margin..

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