PROPOSAL TO GOVERNMENT OF INDIA AND GST COUNCIL

SUBJECT:

Proposal for "Petrol-Like Daily Pricing System for Edible Oils Across India" with GST Calculation on Factory Printed Daily MRP and Necessary Legislative Reforms for Consumer Protection, Price Transparency and Uniformity

Submitted By:

Vinay Dadmal
House No. 55, Swarajnagar, Behind Omkarnagar,
Manewada Ring Road, Nagpur – 440027
Maharashtra, India
Email: dadmalv2015@gmail.com

Place: Nagpur
Date: 28.10.2026

TO

1. Hon'ble Union Minister of Finance

Ministry of Finance, Government of India
North Block, New Delhi – 110001
Email: fm@nic.in

2. Hon'ble Union Minister of Consumer Affairs, Food & Public Distribution

Department of Consumer Affairs
Krishi Bhawan, New Delhi – 110001
Email: secy-ca@nic.in

3. Hon'ble Union Minister of Food Processing Industries

Ministry of Food Processing Industries
Panchsheel Bhawan, New Delhi – 110049
Email: minister-fpi@gov.in

4. Chairperson, GST Council Secretariat

GST Council Secretariat
5th Floor, Tower II, Jeevan Bharati Building
Connaught Place, New Delhi – 110001
Email: gstcouncil@gov.in

5. Chairperson

Competition Commission of India (CCI)
9th Floor, Office Block-I, Kidwai Nagar East,
New Delhi – 110023
Email: chairman@cci.gov.in

6. Secretary

Department for Promotion of Industry and Internal Trade (DPIIT)
Udyog Bhawan, New Delhi – 110011
Email: secy-dipp@nic.in

7. Chief Secretary

All State Governments and Union Territories

RESPECTED SIR/MADAM,

I respectfully submit this proposal for introducing a Petrol-Like Dynamic Daily Pricing Mechanism for Edible Oils throughout India, ensuring complete transparency, consumer confidence and real-time transfer of market benefits to citizens.

Petrol and diesel prices across India are revised daily based on international market conditions and domestic factors. However, edible oils, despite being an essential commodity used by every household, often continue to be sold at old prices even when wholesale and import prices decline significantly.

As a result, consumers do not receive timely benefits of lower market prices and often pay substantially higher rates, causing dissatisfaction and reducing trust in the pricing system.

Therefore, legislative intervention is required to establish a transparent and uniform daily pricing framework for edible oils.

PROPOSAL

1. Daily MRP Revision System

Every edible oil manufacturer, importer, packer and refiner shall:

Determine a daily national MRP for each product.
Update MRP every day based on:
- Crude edible oil prices.
- Import prices.
- Currency fluctuations.
- Transportation costs.
- Processing costs.
- Government taxes.

The revised MRP shall be centrally published on a public portal.

2. Digital Daily MRP Declaration Portal

Government shall establish:

"National Edible Oil Price Portal"

Features:

Daily price publication.
Product-wise MRP.
Brand-wise MRP.
State-wise availability.
Historical price trends.
Public access free of charge.

Consumers should be able to verify prices through:

QR code scanning.
Mobile application.
SMS service.

3. Factory Printed Dynamic MRP

Every edible oil package should contain:

A. Base Printed Information

Brand Name
Batch Number
Manufacturing Date
Quantity
QR Code

B. Dynamic Price Information

The final MRP applicable on any day should be accessible digitally through QR code linked with the Government Portal.

4. GST Calculation on Factory Declared MRP

For all edible oils:

GST should be calculated on factory declared MRP.
Uniform valuation mechanism should be established.
Artificial intermediary markups should not affect GST calculations.

This will enhance:

Tax transparency.
Audit efficiency.
Reduction in tax disputes.
Consumer confidence.

5. National Uniform Pricing Framework

A consumer in:

Nagpur
Delhi
Chennai
Guwahati
Srinagar

should receive substantially similar pricing except for genuine transportation differences.

Large arbitrary price variations should be monitored.

6. Mandatory QR Code Verification

Every edible oil package should carry a Government-compliant QR code displaying:

Today's MRP
GST amount
Manufacturer
Batch details
Previous week's price trend
Consumer complaint mechanism

REQUIRED LEGISLATIVE AMENDMENTS

A. Legal Metrology Act, 2009

Amend provisions enabling:

Dynamic electronic MRP declaration.
QR-code based real-time pricing.
Digital verification by consumers.

B. Legal Metrology (Packaged Commodities) Rules, 2011

Amend rules to provide:

Daily MRP revisions.
Centralized digital disclosure.
Mandatory QR code incorporation.

C. CGST Act, 2017 and SGST Acts

Suitable amendments may be examined for:

Harmonised valuation procedures where MRP-based taxation is adopted for edible oils.
Integration with digital MRP reporting systems.
Simplified audit mechanisms.

D. Essential Commodities Framework

Government may prescribe transparency obligations and reporting standards for edible oil manufacturers and importers.

E. Consumer Protection Act, 2019

Introduce provisions requiring:

Daily transparent MRP disclosure.
Digital consumer verification.
Penalties for misleading pricing information.

FEASIBILITY REPORT

Economic Feasibility

Advantages

Real-time transmission of market benefits to consumers.
Reduced possibility of excessive profiteering.
Improved market competitiveness.
Better price discovery.
Increased transparency in supply chains.
Enhanced consumer confidence.

Technological Feasibility

India already possesses:

GST Network (GSTN)
UPI Infrastructure
QR Code Ecosystem
Digital Public Infrastructure
Aadhaar Enabled Systems

Therefore, implementation costs are manageable.

Administrative Feasibility

Daily petroleum pricing demonstrates that India is already capable of operating nationwide dynamic pricing systems.

The same model may be adapted for edible oils using existing digital frameworks.

Benefits to Consumers

Consumers will receive:

✓ Transparent pricing

✓ Daily updated prices

✓ Fair market value

✓ Reduced exploitation

✓ Easier comparison among brands

✓ Improved purchasing decisions

Benefits to Government

Government will receive:

✓ Enhanced tax compliance

✓ Better market intelligence

✓ Reduced consumer grievances

✓ Improved inflation monitoring

✓ Digital audit trail

✓ Better policy making through real-time data

EXPECTED OUTCOMES

If implemented nationally:

Greater transparency in edible oil pricing.
Improved consumer trust.
Faster transfer of benefits from falling global prices.
Better GST compliance.
Reduction in arbitrary pricing practices.
Strengthened digital governance.
Increased public satisfaction.

PRAYER

In view of the above, it is respectfully requested that the Government of India, GST Council, Ministry of Consumer Affairs, Ministry of Finance, Food Processing Industries Ministry, State Governments and all concerned authorities may constitute an Expert Committee to examine the proposal and recommend suitable legislative and administrative reforms for implementation of a transparent "Petrol-Like Daily Pricing System for Edible Oils Across India."

Such a reform would significantly strengthen consumer rights, improve market transparency and support the vision of Digital India and Consumer-Centric Governance.

Yours faithfully,