cost of production on the packet

retd personal

Let me cut and paste a page from Legal service India.com on Maximum Retail Price( Chhoti Sahi):-



Under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006, certain guidelines has been provided so that the consumer can not charged over to the maximum price printed on the goods by the manufacturer. These guidelines are as follows:

1. consumer goods mean all goods and items brought in the market for sale and are meant for the use and consumption of the consumers; 
cost of production means cost incurred directly or indirectly by the manufacturer in the production of goods; 
printing means printing of the cost of production and retail price at a visible place on the product in Hindi and English and the local language of the place it is sold; and
maximum retail price means such price at which the product shall be sold in retail and such price shall include all taxes levied on the product.

The legislation has made it mandatory for the manufacturers to printing of cost of production and maximum retail price on packaging of consumer goods, so that the consumer could not get overcharged by the agents/dealer.

It is essential for the consumers to know the difference between the maximum retail price and actual price of the goods. The maximum retail price is inclusive of all taxes and a retailer can sell at a price below the MRP. In fact consumers should always look for retailers who sell below the MRP because the MRP is the maximum retail price allowed for that commodity and not the actual price and a retailer can well reduce his margin built into the MRP. While on the other hand, the actual price could be about 10-15 per cent lower than the MRP. Sometimes the printed MRP is so high that the difference between the selling price and the MRP can be as much as 30-50 per cent. It is an offence to sell at a price higher than the marked price. Whereas the actual price could be about 10-15 per cent lower than the MRP.

I am yet to come across any package from any manufacturer ( Branded/ Defeated) bearing the cost of production on its product. Why Consumer Affair Ministry which spends crores on informing consumers through " Jago Grahak Jago" programmes are not highlighting this very imporant issue that not printing " Cost of Manufacturing " on a product is an offence and any consumer can take the manufacturer to the court of law. I wish to take a few eg WONDER CLEAN Brand Floor Cleaners, Mustard oil manufacturers, LAYS chips etc etc to the court on this issue . Can some one throw more light on this very important issue as our min of consumer affairs as always is with the Benias.


thanks Mandal for providing insight to the above aspects of the act.


I think,anyone could make a consumer case out of the issue as it amounts to an "unfair trade practyice".

Also a suitable RTI query could be raised to the concerned ministry etc.


retd personal

I have been fighting this issue with Min of Consumer Affairs who has a toll free help line number. When I insisted on the issue the administrator there said" Hence forth I ensure that your mobile No/Tele phone No is blocked and not responded" . Since then None take my call on that number. Look at the people entrusted with the public duty. I believe Jago Grahak Jago( which I renamed as the Bhago Grahak Bhago as the advertisement by the ministry on MRP leave the consumers ( Grahak) on the mercy of the manufacturers stating it has no control on the MRP being printed on the product & its the sacred duty of the Consumer( Grahak )to fight it out with the retailers to get a lower price.What a ministry. We pay for their sin bleeding through noses. I believe Delhi University is also involved actively to in " Bhago Grahak Bhago" campaign( obviously fleeching the Govt of India vis-a-vis , we the people of this most unfortunate country. Is there a lawyer unlike that of manuwadi SwamiSubramanium to fight out such real cases for the Aam Admi?


MRP was originally introduced to protect the customers from exploitation,

however,the same as pointed out  by you has become another source of exploitation.

If one is smart enough in bargaining,most of the items are available for about 10 to 50% less than the mrp.




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