Traders' body CAIT has urged the government to introduce a minimum operating price along with a uniform policy for discounts to end the trend of deep-discounts on e-commerce platforms and bring parity in prices of online and offline market.
"We suggest that it is the high time when 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...," it said in a letter to Union Commerce Minister Piyush Goyal, demanding that no product be sold below the MOP.
The letter was signed by Praveen Khandelwal, the National Secretary General of the Confederation of All India Traders (CAIT). The CAIT also said that it is the responsibility of the brands to advise 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.
According to CAIT National President B.C. Bhartia and Secretary General Khandelwal, more than seven crore small businesses in the country are feeling highly disappointed that predatory pricing and deep discounting of e-commerce companies is still continuing irrespective of several stern warning issued by the government.
The CAIT also said that there should be a uniform policy of discounting by brands both for online and offline trade. Cash back on credit cards given by the banks should also be made applicable to offline trade. "There should not be any kind of exclusivity either for online or offline trade. Upgrade or buyback offer by brands should remain the same for both offline and online trade. All schemes of the brands should be made available to online and offline trade in transparent manner."
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