CAIT suggests imposition of MOP for items on e-com sites

19 Nov '19

2 min read

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The Confederation of All India Traders (CAIT) recently wrote to commerce and industry minister Piyush Goyal suggesting imposition of a ‘minimum operating price’ (MOP) for products—comprising a landing price, an operational cost and a profit margin—alleging that traders are at the receiving end of a pricing onslaught by e-commerce firms and brands in collusion with banks.

“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,” a news agency quoted the CAIT letter as saying.

The traders’ body alleged that e-commerce companies and brands in collusion with banks are charging much lower price than the actual market value and are depriving the government of goods and services tax (GST) and other revenue.

It said there should be a uniform policy of discounting by brands both for online and offline trade. It also urged the government to initiate a discussion with all stake-holders on MOP, frame rules for the same and constitute a regulatory authority to regulate and monitor all verticals of retail trade, including small retail, big retail, e-commerce and direct selling besides MOP.

If anyone wants to offer any scheme, the same should be approved by the regulatory authority, it added.

Fibre2Fashion News Desk (DS)

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