What is the Full Form of MRP?

The full form of MRP is Maximum Retail Price. The maximum retail price, or MRP, is the highest price charged in a single country for a specific product. The manufacturer of such a product sets the maximum retail price. The MRP is derived by adding the cost of the items, shipping, and any additional government taxes charged on the commodity, which varies depending on the product. In rare situations, the merchant may sell the things at a cheaper price than the market price. A maximum retail price is a means of preventing retailers and sellers from charging more than the market price for a product. 

MRP Critics

Since the beginning, the concept of MRP has been widely questioned. However, the following are some of the grounds for MRP’s classification:

• A product’s MRP can occasionally be set by the manufacturer to be up to ten times the projected retail price.
• People in rural areas do not have access to a diverse choice of products since retailers in rural areas cannot charge more than MRP due to greater transportation expenses.
• When compared to the free market system, MRP was reprimanded because, with MRP, manufacturers are in charge of fixing the price and determining how much profit merchants will make.
• Changing the MRP by adding extra production quantities, such as a chilling price for chilled drinks.

The maximum retail price (MRP) concept is governed by legal metrology laws, PCR, 2011, and according to this rule:

• Two MRPs on the same item are not permitted.
• To make it easier for the client to read, the font size of the MRP and any other information, such as the expiration date, should be visible.
• The PCR requires the MRP and statement on medical equipment such as thermometers,  valves, and so on to include the PCR.
• Packaged items must be labelled with the product statement and  MRP.
• All necessary information, such as the importer’s name and address, manufacturer’s name and address, packer’s name and address, net content, MRP, and customer service phone numbers, must be included in the items displayed by a seller on an e-commerce site.

Also Read: Diploma in Taxation

Hope now you know all about the full form of MRP. Visit the General Knowledge page to discover more intriguing articles like these.