SOME CSD GROCERY & LIQUOR ITEMS PRICE MORE THAN MRP ? LETS KNOW THE REASON

Usually it has been experienced by you all that, always the price of grocery and Liquor items are far lower than the MRP shown in the product label. In some exceptional cases, it has been noticed that the actual price charged by URC is more than NRP shown in the price tag of the product.

In CSD Manual, published by CS Dte, IHQ of MoD (Army) has stated that in many cases, there have been found the CSD rate of some grocery or liquor items is more than its MRP at URC. But it is violation of Indian Fair Trade Practice rules and order. This should not be happened and if it is found, may be rectified as directed by the Canteen Stores Directorate. The details of the matter as described in the manual is reproduced below :-

SPARSH Contact Email ID and Contact Numbers for any Problem

CSD negotiates the price with the manufacturers eliminating the margins of the distributors and to ensure lowest rate anywhere in the country. The discounts negotiated by the CSD with the firms are thus high, being the largest buyer. Therefore, CSD price are lower than the MRP. Following aspects must be kept in view in case, the CSD price is reported to be higher than MRP.

Reason behind Higher Price than MRP

On many occasions firms in their anxiety to inform the clientele about the competitive pricing of CSD, prints the CSD price as the MRP resulting in the misconception.
The stocks held by the units are of old vintage, while the firm had reduced the MRP of the product subsequently on new stocks. Units are to be careful while preparing indents and also follow FIFO system of sale at their counters to avoid incident of CSD price higher than MRP printed on the packs.
However, on receipt of the complaint, following steps are taken :
Item is identified with the index no. The samples are kept in custody for investigation.
The CSD rate is checked with pricing circulars, firm‟s MRP registered with CSD, wholesale price and retail price.
On identification of above factors, the sale of index no. (Item) is suspended and show cause notice is issued to firm and surprise Market Survey is conducted.
If CSD items rates are more than the MRP then the firm is suitably penalized as per policy and rates reduced accordingly.

CSD Items Purchase on behalf of ESM Authorisation Form for Attendant

It is true that, after introducction of e commerce, people are less interested in CSD. Many items are available in E commerce websites i.e Amazon, Flipkart, Big Busket at far lower price than CSD if we calculate in details. Moreover, there is no hazard of collection from shop. E commerce websites delivered the items at your location and at most of the times without charging any fees. If we calculate all these things, grocery items are mostly cheaper in e-commerce websites.

CSD has also undertaken a project to deliver the items at your doorsteps following the footstep of E Commerce websites. AFD itemsare already available in semi online mode. It can be expected that very soon, we may get the CSD Grocery and Liquor items at our doorsteps just following the home delivery system of other pvt organisations.