Let us not micromanage retail price tags in India

The Centre has a valid reason to want consumers made aware of their GST-relief benefits. Even so, decisions on dual price labels for inventory clearance are best left to market forces

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In India's switch to a lighter GST regime 10 days hence, two transitional aims of the Centre are amply clear. Sweeping tax cuts must translate into lower prices, as the goal of this reset hinges on this, and people at large should see it happen. Pricing transitions, though, can be tricky. Take the case of packaged products whose packages must bear maximum retail prices (MRPs) and distribution networks are already loaded with inventory that shows old prices. In the fast moving consumer goods (FMCG) sector, a common strategy of using easily grasped 'price points' for low-priced items—say, ₹10 or ₹20—means that companies must enlarge their packs to pass on GST relief. This reversal of 'shrinkflation' will take time. As reported, the department of consumer affairs has set a year-end deadline to clear old stocks. Till then, packs must display both the old price and its GST-led revision, the latter by means of stickers, re-stamping, etc. Marketers have also been asked to publish newspaper ads, send dealers notices and inform metrology authorities of their price twea