CAIT suggests govt to impose Minimum Operative Price
New Delhi, Nov 18 (KNN) The Confederation of All India Traders (CAIT) in a written communication has suggested the government to impose a "minimum operative price" for products, alleging that e-tailers like Amazon and Flipkart practicing unethical & unfair business.
"Under the circumstances and visualising it as a price war, we suggest it is the high time when the government must step in and enforce the fundamental of Minimum Operating Price (MOP) which is the price consisting of landing price, operational cost and reasonable profit margin and below the MOP no product should be sold in the market," CAIT said in the letter on Thursday.
"It is the responsibility of the Brands to advise to their buyers to sell their products at MOP to maintain the market hygiene keeping in mind that retailer should earn at least minimum margin to cover his operational cost and earn very thin margin," CAIT suggested in the letter to Goyal.
CAIT has also alleged that various banks are exclusively giving cashback and other schemes only to ecommerce companies, which also helps in lowering the prices of products. “In this way, both ecommerce Companies and brands in collusion with Banks, by charging a much lower price than the actual market value is depriving the government with huge goods and service tax and other revenue,” the traders’ body added.
The traders across country are of the considered opinion that if these companies are allowed to continue the business in their present modal, the days are not far away when they will emerge as second edition of East India Company which will not only be detrimental to retail trade but will also prove a dangerous situation for economy of the country-said both the trade leaders.
Both Bhartia and Khandelwal urged Goyal to initiate a discussion with all stakeholders on MOP and frame rules for the same and also demanded that the Government should constitute a Regulatory Authority to regulate and monitor all verticals of retail trade including Small Retail, Big Retail, E Commerce & Direct Selling. Beside MOP, if anyone is desirous to offer any scheme, the same should invariably be approved by the Regulatory Authority. The cash on delivery (COD) in e commerce should not be allowed and all deliveries in online sale should accept digital payments only.