Latest News

    • Home
    • Global
    • Why Does A Bottle Of Water Cost You More At The Airport?
    Why Does A Bottle Of Water Cost You More At The Airport?
    Monday, November 18, 2019 IST
    Why Does A Bottle Of Water Cost You More At The Airport?

    According to rules, one cannot price identical items differently. But at the airport, we have a bottle of water which costs us much more than a local store. Ever wondered why is there a variation in Maximum Retail Price (MRP) on the same product at different places? On the same line of thought – Is it possible for companies to charge differently for the same product, sold through different trade and retail channels?

     
     

     
    The Amendments Say, No!
     
    According to the Rules 2011 of the amendments that were introduced to Legal Metrology (Packaged Commodities), which was effective from January 1, 2018, it is mandatory that a company cannot apply dual MRP to identical pre-packaged commodities.
     
    However….
     
    The MRP may vary due to the quality, quality, packaging and other product differentiation. The companies price these commodities at different MRPs and sell different packs across different retail and trade channels, which in turn brings cost variations.
     
     
    As well as, these companies have different sizes of stock-keeping units for different trade and retail channels, and they are allowed to charge different MRPs according to the size.
     
    Steps taken by the AAI
     
    The Airport Authority of India (AAI), has asked the concessionaires at the airports to sell the products at MRP and not above that. They also had informal meetings in the past where it was asked by the AAI that the concessionaires charge suitably for food and beverages, to make them affordable, especially in smaller cities.
     
     
    The Other Factors
     
    1. Many must be unaware of the fact that the hotels and restaurants can legally sell bottled water and other packaged products above MRP because they render services, which cannot be governed by the Legal Metrology Act.
     
    2. The location also has a huge role to play in the variation of cost. The airport concessionaires have to pay real estate cost, which are 5-6 times higher than other retail locations, which makes it capital-intensive.
     
    3. Multiple changes to the GST structure in the last one and a half years is another factor which affects the MRP and labeling a tricky issue for packaged food companies.
     
    Whatever the reason might be we appreciate teh actions by the AAI to control the prices and stand by it. Let’s hope in future, we can afford the whole dinner at the airport.

     
     
     
     
     

    Related Topics

     
     
     

    Trending News & Articles

     Article
    'Worse than prison': A rare look inside China's detention camps to 'brainwash' Muslims

    ALMATY: Hour upon hour, day upon day, Omir Bekali and other detainees in far western China's new indoctrination camps had to disavow the...

    Recently posted . 198K views . 1 min read
     

     Article
    What The Shape Of Your Belly Button Says About Your Health

    If you have payed attention to the belly buttons of people on the beach or the members of your family, you have probably noticed that they have different shapes and...

    Recently posted . 8K views . 2 min read
     

     Article
    Top 10 Horrifying Acts of Chemical Warfare and Gas Attacks

    In this age of terror, there might be nothing more terrifying than the thought of an attack carried out with chemical weapons. We’ve all heard the horrific ...

    Recently posted . 3K views . 4 min read
     

     Article
    Top 10 Best Gym Equipment Brands in India 2018

    Body fitness is one thing that everyone wants to maintain irrespective of age. Going to the gym and doing some great exercise always helps to maintain your body fit...

    Recently posted . 3K views . 2 min read
     

     
     

    More in Global

     Article
    The $280,000 lab-grown burger could be a more palatable $10 in two years

    To make cultured meat, stem cells from the muscle of an animal are placed in a culture medium that is then put in a bioreactor - similar to those used for fermentat...

    Recently posted. 623 views . 1 min read
     

     Article
    15 Tea Tree Oil Benefits No One Talks About

    For years, tea tree oil has been celebrated for its calming qualities, but this oil offers many more benefits. With antimicrobial and antiseptic properties, tea t...

    Recently posted. 633 views . 1 min read
     

     Article
    SCIENCE HAS POSSIBLY DISCOVERED THE PERFECT HUG TIME

    Like everything else in life, timing is the most important. And hugging is no exception. Having the urge to hug someone after getting to meet them in person after...

    Recently posted. 641 views . 2 min read
     

     Reviews
    The Best 5 Hiking Backpacks in India – Reviews & Buying Guide



    Recently posted . 1K views . 140 min read
     

     Article
    Woman kills boyfriend, cooks body parts with rice and serves it to Pakistani construction workers

    A 30-year-old Moroccan woman in UAE has confessed to butchering her boyfriend, mincing his remains and feeding them to construction workers.

    Recently posted. 639 views . 1 min read
     

     Article
    Science Reveals 7 Hobbies That Make You Smarter

    Through several centuries, humans believed that your talents could only be god-gifted. They thought we were born with a certain IQ level, and that was it. Today w...

    Recently posted. 637 views . 1 min read
     

     
     
     

       Prashnavali

      Thought of the Day

    “Be thankful for what you have; you’ll end up having more. If you concentrate on what you don’t have, you will never, ever have enough.”
    Oprah Winfrey

    Be the first one to comment on this story

    Close
    Post Comment
    Shibu Chandran
    2 hours ago

    Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

    November 28, 2016 05:00 IST
    Shibu Chandran
    2 hours ago

    Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

    November 28, 2016 05:00 IST
    Shibu Chandran
    2 hours ago

    Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

    November 28, 2016 05:00 IST
    Shibu Chandran
    2 hours ago

    Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

    November 28, 2016 05:00 IST


    ads
    Back To Top