[ Badak Yomgam ]
The persistent practice of surcharging and charging prices above the maximum retail price (MRP) has reached a critical point where it threatens the core of Arunachal Pradesh’ economic and social integrity. This issue is no longer just a minor market discrepancy; it is an urgent crisis that directly impacts the daily lives of common citizens and undermines the state’s potential as a premier tourism destination.
For the common citizen, overcharging on any MRP tagged commodity leads to a silent but steady erosion of household savings. Retailers often justify these price hikes by claiming that the wholesaler or distributor provided the goods at an inflated cost, or by citing carriage charges for door to door delivery. However, legally, these are operational expenses already factored into the profit margins set by the manufacturer. A specific example of this exploitation is the freezing charge for chilled items like soft drinks or milk. Because refrigeration is a mandatory storage requirement for these goods, passing the cost of electricity or equipment to the customer as a surcharge above the MRP is an illegal trade practice.
Furthermore, the reintroduction of coins into the local economy is a fundamental necessity to dismantle the culture of arbitrary price rounding that currently plagues the market. While a common misconception persists that small denominations are no longer in circulation, it is vital to acknowledge that under the Coinage Act of 2011 and official mandates from the Reserve Bank of India, all denominations including the Rs 1, Rs 2, Rs 5, Rs 10 and Rs 20 coins remain legal tender nationwide. There is no legal basis for their rejection in any state, and their absence in Arunachal is a behavioural irregularity rather than a regulatory one. By actively re-legitimising these coins, the state can eliminate the primary excuse used by retailers to round up prices to the nearest 10-rupee mark, thereby ensuring that the MRP is treated as an absolute legal limit rather than a mere suggestion. This shift would provide consumers with the exact change they are owed, effectively ending the ‘hidden’surcharges that currently drain the resources of both the local citizens and visiting tourists.
For the tourism sector, which the state government is labouring to promote, illegal surcharging acts as a significant structural barrier. Visitors who experience inconsistent pricing and blatant overcharging at popular destinations leave with a sense of having been exploited. This tarnishes the reputation of Arunachal as a hospitable destination. To address this, the Department of Tourism must collaborate with the Department of Legal Metrology and Consumer Affairs to enforce strict compliance at all tourist landmarks.
The Department of Legal Metrology and Consumer Affairs is the sole department legally responsible for the enforcement of price regulations and the protection of consumers in Arunachal. This department must take the lead in ensuring market discipline through comprehensive market inspections beyond routine checks, investigating wholesaler accountability to ensure they are not illegally squeezing retailers, and strictly enforcing the Legal Metrology (Packaged Commodities) Rules 2011, ensuring that every package bears the correct declarations and is sold at the stated price. Supporting these efforts, the Tourism Department must maintain the state’s image by installing mandatory fair price signage, enforcing authorised vendor agreements that require adherence to MRP, and maintaining help desks at transit hubs to assist travellers in reporting overcharging.
The Legal Metrology Act 2009, Section 36(2), is the primary statute governing price integrity for all packaged commodities. Any entity – whether a manufacturer, wholesaler, or retailer – that sells or distributes pre-packaged commodities above the MRP is liable for severe punishment. Under the Consumer Protection Act 2019, overcharging is classified as an unfair trade practice, allowing citizens and tourists to seek redressal for any commodity sold above its marked price.
The time for administrative complacency has passed. Strict enforcement by the Department of Legal Metrology and Consumer Affairs, supported by the reintroduction of coins and the vigilance of the Tourism Department, will provide the way to protect the citizens and restore its reputation for fair trade.(The contributor is a PhD scholar)
