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Price Regulation |
Any item of goods or services may be “specified” as an essential commodity by the Hon. Minister of Trade, Commerce & Consumer Affairs in consultation with the Consumer Affairs Authority, acting under Section 18 of the Act. Once an item is gazetted no importer, manufacturer or trader can increase the price of such product without the prior written approval of the Authority. A period of 30 days is provided for the Authority to examine the application and convey the decision to the company.
The Authority examines the cost structure pertaining to an application for a price revision by making reference to supportive documentary evidence furnished by the applicant, and makes recommendations to the Board of the Authority. The objective in examining a price is to ensure that prices are not increased indiscriminately. The prices approved by the Authority for any particular product may vary from brand to brand, which leaves each brand identity undisturbed depending on the special distinguishing features of a brand and the company’s marketing strategies. In addition, the Authority is also consulted prior to introducing fiscal measures, like import duty changes, subsidies, rebates, etc. with a view to reducing prices or contain them at current levels, whenever prices are likely to escalate due to supply and demand forces. |
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| Download or View the cost structure Here |
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