MRP Decoded: What Every Consumer Should Know
An Interview with RAJIV NATH, Forum Coordinator, AiMeD
Most of us glance at the MRP on a product without thinking twice. But, behind that tiny, printed number lies a big story – one that affects how much we pay, how businesses behave and how fairly the market treats consumers. To help simplify this, The Aware Consumer spoke to Rajiv Nath, Forum Coordinator of AiMeD, who has been championing fair pricing and ethical practices in India's medical devices sector. Here, he breaks down the MRP puzzle in simple, relatable terms.
Yes, it does. Think of MRP as a 'speed limit' for prices – no shop can legally go above it. In medical devices, this is especially important because people often buy them in emergencies or in places with limited choices.
Not really. Online prices may jump around, but the printed MRP acts like a safety net. It ensures there's always a maximum price, especially for essentials like thermometers, BP monitors or insulin syringes.
A big discount makes people feel as if they are getting a steal – even if the MRP was inflated. For example, an oxygen mask with an MRP of ₹2,000 sold for ₹200 looks like a huge bargain, but the real value may only be ₹200.
It's like calling a ₹50 pen a ₹500 pen and then shouting “90% OFF!” It misleads consumers and destroys trust. In healthcare, where people can possibly buy under stress, this is especially unfair.
While the Maximum Retail Price (MRP) ensures a cap on how much consumers can be charged, its effect on actual pricing varies across different sectors. In some cases, strict adherence to MRP leads to near uniform pricing among sellers, limiting the scope for price competition. However, this dynamic shifts noticeably in online marketplaces, where vendors often set prices below the MRP to attract and retain customers. This practice fosters active competition and allows buyers to benefit from reduced prices.
In contrast, the scenario is different in corporate hospitals and retail pharmacies. These establishments tend to stock medical device brands with higher MRPs, which translate into larger profit margins for sellers. Patients, especially those seeking medical devices, rarely encounter alternative choices or competing brands, resulting in a lack of price transparency. This limited availability creates a marketplace imbalance, discouraging genuine price competition and leaving consumers with fewer options. As a result, patients may end up paying more, without access to competitive pricing or the ability to compare products based on value.
A bit, yes. Once printed, the MRP can't be changed easily. If costs rise or fall suddenly, businesses can't adjust quickly. It's like being stuck with last season's price tag.
A simple, powerful fix is what we have long recommended: Cap trade margins based on the import‑landed price, not on an inflated MRP.
Why? Because some products enter India at ₹100 but apply an MRP of ₹1,000 just to offer huge margins to hospitals or retailers. This pushes hospitals to choose the product with the highest margin, not the best quality or best price as best value for patients.
If margins are capped on the real cost, hospitals will choose based on quality, safety and value – which is exactly what patients deserve.
For many products, a Suggested Retail Price (SRP) could work well. It gives guidance as well as allows healthy competition. But, for essential medical devices – like insulin syringes, oximeters or BP monitors – MRP still protects patients from being overcharged.
Although the idea seems reasonable, it is not practical or effective when applied in reality. Previous efforts in the pharmaceutical industry have mostly failed because there were no consistent and fair reviews of pricing and compensation between regulators and manufacturers. As a result, many manufacturers stopped producing medicines at unsustainable prices or compromised on input quality and manufacturing processes to stay afloat. This ultimately reduced consumers' access to high-quality medicines from reputable manufacturers.
Yes, but it will evolve. We may see digital MRPs, QR‑based price checks and more transparent online pricing. But the core idea – protecting consumers from overcharging – will always matter.
India needs ethical manufacturers who genuinely want to offer good‑quality, affordable alternatives to expensive imported brands. But, unlike buying a TV or mobile phone – where you can compare prices, shop around and negotiate – patients in hospitals rarely get that choice. Hospitals often push medical devices at full MRP without offering any discounts and prefer brands that give them the highest margins. This sidelines ethical Indian manufacturers who offer fairer, lower‑MRP products.
This is why we strongly advocate capping trade margins based on the real import‑landed price. It levels the playing field, encourages hospitals to choose products for quality rather than margin, and ensures patients get safe, reliable devices at honest prices. A fair pricing system will help ethical manufacturers thrive and give consumers better healthcare value.