What is MRP full form?
MRP full form is Maximum Retail Price. Maximum retail price (MRP) is a manufacturer-calculated price that is the highest price that can be charged for a product sold in India. In this article we will discuss MRP, its complete form, how MRP is calculated, MRP critics, the introduction of MRP in India, and New MRP rules.
MRP Full Form in Hindi
| MRP Full Form | Maximum Retail Price |
| MRP Full Form in Hindi | मैक्सिमम रिटेल प्राइस | (अधिकतम खुदरा मूल्य) |
What is MRP?
Maximum Retail Price, MRP the maximum retail price, or MRP, is the most outstanding price charged in a particular nation for a specific product. The maker of such a product determines the maximum retail price. The maximum retail price (MRP) is calculated by adding the cost of the goods, shipping, and any additional government taxes levied on the commodity, which varies per product.
Objectives of MRP
The Maximum Retail Price is the highest price at which a product can be sold to the end consumer and It is typically displayed on the product packaging and includes all applicable taxes.
The main objectives of Maximum Retail Price are given below:
- Protecting consumers: Maximum Retail Price helps to protect consumers from being overcharged by ensuring that retailers cannot sell a product for a price higher than the MRP.
- Promoting fair competition: MRP helps to promote fair competition among retailers by preventing them from setting artificially high prices for products.
- Ensuring transparency: MRP helps to ensure transparency in pricing by clearly displaying the price at which a product can be sold to the end consumer.
- Reducing black market activity: It can help to reduce black market activity by making it difficult for retailers to sell products at prices significantly above the MRP.
- Reducing price discrimination: It can help to reduce price discrimination, which is the practice of charging different prices for the same product to different groups of consumers.
- Facilitating price comparison: Maximum Retail Price makes it easier for consumers to compare prices for different products, as the MRP is typically displayed on the product packaging.
Features of Maximum Retail Price MRP
Following the key features of Maximum Retail Price (MRP):
- MRP Maximum Retail Price is the highest price that a manufacturer or retailer can charge for a product.
- Maximum Retail Price is a typically printed on the product packaging, along with other information such as the product’s ingredients or expiration date.
- It is set by the manufacturer or retailer and is intended to protect consumers from being charged excessively high prices for products.
- MRP is regulated by law and it is illegal to charge more than the MRP for a product.
- The MRP is not necessarily the same as the manufacturer’s suggested retail price (MSRP) or the wholesale price, which are the prices that the manufacturer recommends that retailers sell the product for.
- The MRP may include any applicable taxes, such as value-added tax (VAT) or sales tax.
- The MRP may vary depending on the location or market where the product is being sold.
- Some products, such as prescription drugs or certain types of alcohol, may have additional regulations or restrictions on their MRP.
MRP Full Form in Medical
The full form of MRP in Medical is Magnetic resonance pancreatography.
MRP Critics
Since its introduction, the concept of Maximum Retail Price has been criticized. Here are a number of the reasons for criticism MRP :
- Maximum Retail Price was criticized at the time when it had been compared to a free market system because, at the maximum retail price, manufacturers are liable for deciding the price and what profit the retailers will make.
- MRP are certain ways to control the MRP by adding additional production quantities, like adding a cooling charge for cold drinks.
- The manufacturer can set a product’s MRP up to 10 times the expected selling price.
- Many People in rural areas aren’t getting many different products because retailers don’t have most of the items in stock because they can’t charge more than Maximum Retail Price in rural areas to adjust for higher transportation costs.
How Do You Calculate MRP?
Marginal revenue product is calculated by multiplying the Marginal Physical Product (MPP) of the resource by the Marginal Revenue (MR) generated. The Maximum Retail Price assumes that the expenditures on other factors remain unchanged and helps determine the optimal level of a resource.
Formula for Calculating MRP:
MRP(Maximum Retail Price)= Manufacturing Cost + Packaging Cost + margin of profit + CnF(Cost and Freight) Margin + Stock Margin + Retail Margin + GST + Shipping + Marketing or Advertising Expenses + Other Reasonable Expenses
Legal Metrology Rules for MRP
- All packed commodities should be labelled and the label must contain declaration and the MRP
- After the amendments in the Pre Packaged Commodities rules 2011, the goods displayed by the seller on online e-commerce platforms must contain the information about the name and address of the manufacturer, packer and importer, net content, mrp, customer care number, etc.
- The medical devices like valves, syringes, thermometers, etc., must state the MRP and declaration as per the PCR.
- There should not be two MRP on a single product.
- The font size of the MRP and other information like ‘best before date’ should be big so that consumers can easily read this.
Conclusion
MRP full form representing “Maximum Retail Price” MRP refers to the highest price that can be charged for a product sold in India, including all taxes legally required to be included in the price. It is a consumer protection measure that protects retailers from charging customers above a certain price for goods. The concept of MRP is particularly significant in India, where it is mandated by law for all packaged goods to clearly display this price. MRP ensures that consumer are aware of the maximum price they should pay, thereby preventing retailers from overcharging.
