India: Supplyco resolves glitch, slashes prices of commodities
07 July 2017
Post-GST price of non-subsidised commodities fall below MRP rates
Sales have picked up at the 1,600 odd outlets of Supplyco across the State after the agency recovered from hiccups in fixing prices of commodities in the first few days following the launch of Goods and Services Tax (GST).
Sales, badly hit till July 4 pending a much-needed upgrade of software keeping inventory of 23,000 items sold through the outlets, boomed over the last few days with the post-GST price of non-subsidised commodities like atta, maida, soap, jaggery, turmeric powder, cashew and the like falling below the MRP rates.
“As the Finance Minister said today, we decided to pass on the benefits of GST to customers. Our people at these outlets also realised, after the software upgrade, that there is no liability on them if they sell items below the MRP rates. The last two days witnessed brisk sales at all the outlets, and we hope many more items will see further reduction of price which will reflect hugely in the special markets to be set up during the Onam season,” said A.P.M Mohammed Hanish, chairman and managing director of Supplyco.
Considering that non-subsidised commodities form 30 to 40% of items sold through Supplyco shops, the fresh fall in prices is sure to enthuse the ordinary buyer, said K. Venugopal, general manager. “To cite an instance, a popular brand of atta, with an MRP of ₹52 was earlier being sold by us at ₹49.40. It has now come down further to ₹48.90. Similarly, prices fell for cashew packets of 200 gm (₹32.50), three-soap packet (₹69.67), jaggery (₹75), turmeric powder (₹20.25), maida (₹50.60), palada, chilly powder, rava, chicken masala, sambar powder and the like. Efforts are ongoing to further reduce the selling price of some more items,” he said. .
With the agency opening more Maveli stores - it already operates about 920 stores - more people will be able to shop essential goods at cheaper rates, he added.