The mrp full form is the maximum retail price. The maximum retail price (MRP) is a manufacturer-determined price that is the most a product can be sold for in India and Bangladesh. Retailers, on the other hand, may opt to sell things at a lower price than the MRP. MRP differs from systems that employ a suggested retail price since the price set by the manufacturer in those systems is merely a suggestion and not enforceable by law.
M = Maximum
R = Retail
P = Price
In India, all retail products must be labeled with the MRP. Customers cannot be charged more than the MRP. Some stores may price somewhat less than the MRP in order to attract more customers. Consumers are frequently charged unlawfully above the MRP in distant places, tourist destinations, and situations where a product is difficult to obtain.
Milk vendors in Mumbai threatened a boycott in April 2015 after it was discovered that they were charging more than the MRP, and the Maharashtra state government vowed to intervene.
MRP has been challenged as being incompatible with the free market system since it involves manufacturers determining how much profit merchants will make. It is simple to circumvent the MRP by adding’services’ to the item price, such as a ‘cooling charge’ for cold drinks, or by putting the MRP at up to ten times the expected sale price. Consumers in rural areas are also harmed by the MRP since retailers may be unable to charge a higher price to compensate for the increased cost of transportation and distribution to those areas if they cannot charge a higher price.