Sunday, December 27, 2009

Multi layer pricing in India


"We sell morning coffee@ Rs 78/- per cup only" was the curt reply from the young girl (wo)manning the coffee counter at the departure hall of Indira gandhi International airport, New Delhi.  My wife countered saying "last evening i bought the same coffee for Rs61/- per cup"! how come the coffee instead of percolating, shoots up within a span of 9 hrs?

we were on a stand by ticket to fly back to chennai from New Delhi on the 22nd and waited till about 10pm with a hope to get seats but were asked to come the next morning  and so began the saga of coffee!  My wife stuck to her advocate style of questioning the girl on the counter and she was never willing to give up on her argument that she sells coffee only @ Rs 78/- per cup in the morning!  My wife took out the receipt for the coffee that she paid the previous evening which stated Rs 61/- and showed it to the young girl and by this time at least 3-4 people had gathered to buy their morning coffee and became curious onlookers!

The young man who was grinding coffee seeds behind the stall jumped in to rescue the girl saying " oh! you want a regular coffee?" My wife was relentless in saying " I never said I want a spl coffee"! The man ordered the young girl to give a regular coffee to my wife @ Rs 61/- which was not different from the other cups of coffee that he made and gave to customers and charged Rs 78/- per cup!! "To each according to his needs and ability to pay" seems to be the Mantra adopted by the vendors who adorn the airport at all the centres in India.

This policy defeats the principles and ideologies of socialism which was the driving force that governed India all these years! The objectives of social distribution will be crushed if there are no regulations and control over the pricing of  products.  At this rate, we should be prepared to pay Rs 2000/- for a cup of coffee and may be 17000 for a pitza or a masal dosa in the near future!!?? The rupee will have no value and there will be no food available even if you have bags full of money to pay?

The government should invoke MRTP act and regulate the market mechanism of pricing.  With common wealth games in sight, it will be worthwhile looking at these anomalies and plugging the loopholes so that we can stand tall amidst the visiting athletes and delegations coming into the country  and give them a strong sense of security.  Otherwise, our brothers and sisters in Delhi and the neighbouring states will do well in stripping the foreigners who come in to watch and enjoy the games and hospitality of our nation! The dailies abroad should not carry the front page saying" They came in suits and left New Delhi in Under wears!!!"

5 comments:

  1. "coffee instead of percolating, shoots up within a span of 9 hrs?"! This is a killer article Uncleji!! Not to mention the last line. Its hilarious! hahaha..

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  2. The last sentence is a real killer....well at least the swimming teams have nothing to worry about as their related sporting events have a pre - requisite of only under wears....travelling light i suppose....

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  3. hello raju uncle .. nice to see your blog, pushy sent it across .

    I have a couple of questions about it though .

    "This policy defeats the principles and ideologies of socialism " now isnt india a mixed economy and not just socialist ? in fact arent we leaning more and more towards capitalism by the day ?

    When you complain about airport's high pricing , so should you be complaining about 5 star hotels and their pricing , every place hikes up their rates for a festive season or a peak season , so do even some cell phone / internet operators .

    (@MRTP act)When the government tries to poke its nose in every issue,they would just reduce the amount of small businesses coming up as it wouldnt be attractive , dont you think competition should bring out the cheaper rates and not the government .

    Of course government should step in IF there is colluding or a monopoly but otherwise i don't think government should step into these issues and micro manage everything .

    Of course i'm a computer science guy and have half baked opinions on economics , but this is what i think .

    --Adarsh

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  4. I never even imagined that one cup of coffee would be Rs. 78. A few years ago, may be 15, I hade gone to Neyveli by that Thiruvalluvar Transport bus from Parry's corner, where you dropped me very early morning. I was extremely hungry nd when it stopped at Mamandur, I went in to the small restaurant and ordered to my heart's content, lest I remain hungry and fall short of time before the bus moved again. I had a Puri masala, idli, dosai,. vadai, upma, two coffees and was surprised to read the bill for just Rs. 9 and change.
    India is getting to be a Zimbabwe very fast where one loaf of bread is $ 200 millions!
    What kind of progress are we making?

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