Dual MRP tags would help clear inventories, bring transparency to the market, say FMCG companies

Dual MRP tags, indicating pre and post GST rates, on unsold consumer products will help companies clear inventories and bring transparency to the market, FMCG firms said.

Besides, the tags would enable end-consumers understand GST's impact and how the prices have gone up or down.

The government has allowed unsold pre-packed items to be marketed to consumers with an add-on sticker indicating the revised price for three months.

According to a Patanjali spokesperson, "This relaxation is in the favour of smooth transaction of the GST. It would clear the confusion amongst the trader and the manufacturing community over MRP."

The old MRP will have to be clearly displayed along with the revised MRP sticker. But from October 1, all pre-packed goods will have just one MRP with GST.

The spokesperson added, "This would also bring transparency as the consumer must know the after-effects of the GST, whether the prices got reduced or went up. They can analyse it and compare it."

Hindustan Unilever said it has already started dispatching products with the revised prices.

A HUL spokesperson said, "HUL manages its inventories tightly and hence we do not intend to avail the relaxation provided by the government to affix a sticker on unsold stocks as of June 30, 2017 to communicate price changes due to GST, if any."

Dabur India is also evaluating the recent directive and plans to come up with the revised prices along with the pre- GST rates.

 Lalit Malik, Chief Financial Officer, Dabur India, said, "We are evaluating it and will take appropriate action, as per law."