Today around 8 a.m., deep in my sleep, I heard commotion and people talking loudly on the street below my building. My neighbourhood is generally a serene one where people are quite nice with each other. The sudden commotion aroused me from bed on a cool morning to look out of my room’s window.
A group of 20 men were discussing in a loud voice over the extra two Rupees that they were paying to the shop keepers for a daily basic necessity, milk. A vigilant consumer, Mr Sachin had called the distributors to personally distribute milk pouches to people at maximum retail price (MRP) to the residents of our locality. The local shop owners charge us two Rupees more than MRP. Reason: Refrigeration charges.
The main distributor had set up a kiosk on the street below us at 6:30 a.m. and was selling milk at MRP. Consumers seeing that they are saving two Rupees less flocked the kiosk and started buying from the kiosk. In one hour, the shop keepers of the locality recognized that they will end up in loss today started arguing with the kiosk and Mr Sachin K. To verify things personally, I bought Amul ‘Taaza’ milk at INR 30, which is at MRP, while regular shop keepers have sold it to me at INR 32 from last one week. I was fleeced two Rupee daily for the last one week. Moreover these shop keepers have been charging me one Rupee per litre as refrigeration charges for the last 10 years. This increased to two Rupees recently. A vigilant customer, Mr Sachin K. an estate agent took matter into his hands, personally called distributor, and gave them space in his own shop to sell milk at MRP.
This whole situation irritated the regular shop keepers in our locality, seeing that their milk sales have dropped in one hour, started arguing that this is unfair that they have right to ask customers two Rupees extra over refrigeration charges. This lead to commotion on the street, in front of my home.
I thought, what is unfair in this? Government of India has framed a law that no company should sell products at a price higher than the MRP. Still, I was being fleeced by the shop keepers for the past 10 years. On further enquiries, I learnt that distributors provide one Rupee commission and the refrigerators that local shop keepers house are sponsored by companies selling refrigerated products. You can see the Amul advertisements on the fridge. A vigilant consumer has called the distributor who is selling milk at MRP and alerting regular consumers like me about the fleecing. People realized that they are incurring a loss of 60 Rupees per month if they buy a litre of milk daily and that amounts to 720 Rupees per year
This situation is present all over Mumbai and consumer courts have passed orders in favour of consumers and selling milk at MRP has begun in few places at Mumbai. Aarey dairy has set up direct kiosks at few places which sell milk at MRP. Unfortunately, my locality doesn’t sell Aarey dairy products.
The local shop keepers in my area are already under losses as Big Bazaar and other retail chains have set up shops in my locality. This has severely impacted them and now the milk scenario will also impact their business. We have read in many newspapers how big retail chains have impacted local ‘Kirana’ store and whether more FDI should be allowed in this sector or not. Two ‘Kirana’ shops have been closed in my locality due to opening of retail chains in my locality who offer discounts. Globalization is a part of our daily life and local shop keepers should either adopt it or face consequences like the one which happened today. Complaining that this is unfair and creating commotion is not a solution to this problem.
The local ‘Kirana’ is an integral part of our country. Common people have depended on the local ‘kirana’ store for quick needs. People are short of money at month end and they take essential goods from ‘Kirana’ store owners as a loan or debt and return it at the start of new month. Can big retail chains in India provide this kind of facility?
Let’s not forget that consumer is the king of market.It will be interesting to watch situation here in my locality tomorrow and whether shop keepers are selling us at MRP.
