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  • Writer's pictureAjay Miglani

What is MRP in India and how does it work?

Updated: Jan 9

MRP stands for Maximum Retail Price.

Maximum retail price is the highest price labeled on the product which can be charged by the seller of that product. In India all the products have the MRP stated on them which enables the customer to know the highest price that can be charged from them.

It is compulsory for all the sellers to mark the MRP. The concept of MRP was introduced in India in 1990 after the amendment of Standards of Weights and Measures Act, 1997.

Before the introduction of the MRP in India amendment, the retailer was allowed to either mark the local price on the product or MRP. This made the retailer charge more than the expected and real price from the consumers.

After looking into the increased corruption at the price the amendment was introduced to ensure that the consumers are protected

The Maximum retail price is now governed by the Legal Metrology Rules (Pre Packed Commodities) PCR, 2011. These rules indicate the following

All packed commodities shall be affixed with a label that is legible and prominent, and such label shall contain declaration including the Maximum retail price

Price tag

No exceptions are given for the retailers who tend to sell the only a single brand of any commodity

After the amendments made in the Pre Packed Commodities rules,2011 the goods that are shown by the seller on the electronic networks used for that transaction related to the e-commerce will have to compulsorily mention the name and address of the manufacturer, packer and importer, name of the commodity, net content, maximum retail price, consumer care numbers, etc

Price Screenshot

Medical devices which are listed under the drugs like a valve, syringes, etc should compulsorily state the MRP and also provide the declaration that had been made compulsory under the PCR

It is prohibited to state two MRP on the same product. This has been brought to ensure that the consumers do not get confused in paying the price at places where the items are expected to be charged higher like airports and cinemas

It has been made compulsory for the manufactures involved in packaging and labeling to have bigger font size for labeling and mentioning the details so that the consumers can easily read the context and also ‘best before’ date and the name of the country in which it was manufactured.

The Consumer Good Act, 2006 has clearly stated that no consumer can be charged more than the ‘MRP mentioned on the packaging of the products’.

The MRP in India rules and law has helped consumers. No sellers can charge more than the MRP.

Once an MRP label has been applied, it cannot be replaced with a new label

If you are planning to export your products to India for further resale, this article will help you get a glimpse of the regulations around MRP (Maximum Retail Price)

To know more about how you can export your products to India for resale on online platforms please contact us

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