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When the market becomes costlier

To say that the market should be the last avenue where the Government should put its paws may seem to be an understatement.

The Government of the center and various states has been brazenly interfering in the price tags of varied products in the market just to maintain their vote faces.

The results become disastrous in most of the cases, though the ruling parties become hardly ready to sacrifice their ridiculous pro-poor faces to create a churning in the polls.

The basic economic rules conform that the pricing of a product depends upon a lot of factors, where the demand supply graph plays a pivotal role. As an example, we frequently watch the special discounts on refrigerators and air-conditioning systems in the winter season. Even a learner can understand that such products require a boost to be sold in the winter and that’s why the special offers are announced.

We must understand that no company or brand is ready even to withstand the irreparable market losses due to unnecessary high selling price in this competitive era. When a new product is launched, the marketers spend several brain storming sessions to decide on their prices and commissions as they know even better that their decision is going to make or decimate the fortunes of the new product in the market. Why should the marketers become reluctant in devising the right price label for the worth of their products?

Apart from political ball games, the price of a product depends upon the need and want of the customers. One student may desire a separate laptop for his studies, but it can not fall under the top priorities of his parents, if they have already got one at home. As every individual needs to buy soaps every month, the splurge of soap brands are inevitable, whereas the popular brands of laptops are comparatively lesser in numbers.

We should not forget that the sponsors of the premium slots in any television channel have to pay significantly higher prices as the chances of visibility become higher. It is revealed that some of the serials in some of the TV channels lack sponsors, whereas the cricket matches in India enjoy the splurge due its overwhelming popularity.

Unfortunately, Indian society is yet to gear up to accept entrepreneurship as the mode to create change.

Had the small entrepreneurs grown up in the Indian market, even the consumers would be ready to greet them cordially.

Most of the citizens could be strongly associated with some products or services, which could bring a radical change in the market behavioral patterns.

However, there are innumerable factors that govern the price for any product or service. Even the purchasing capacity of the consumers at certain point of time plays an important role. The plethora of brands makes the competition stiff that often affects the pricing. Again the lack of competition may lead to a monopoly that may seriously cast its magic on the product rates.

Indians have been remaining watchdog of several instances of manipulative politics, whereby the ruling parties had been able to control the inevitable price hikes for certain intervals. Such steps might save the party from poll debacle, but they hapless citizens have to pay even higher in due course of time.

The Government may exhibit its politically correct intention to safeguard the poor, but such proactive steps can even cause an artificial deficit of the corresponding products in the market.

As an example, when the Government of West Bengal has ordered a price carve for the potatoes, the key ingredients of the Bengali dishes disappeared. The strict measures of the administration could ensure the return of the potatoes, but the prices rose within a couple of days. Though the Government tried to set up a network in nooks and corners of the city area, the pricing could not be controlled. Such acts have lent the TMC a pro-poor face, which has helped them to win in the subsequent municipality elections, but it could not change the upswing in the market.

Ironically, the central Government tried to become bold at fag end of their second consecutive terms by setting the market partially free for petroleum products, but they may have to face a debacle in the coming General Election in the recent future.

We, by no means, want to push the poor class of people to an inevitable decay, but social benefits may be rendered even by subsidies, grants and aids. Alas! The unwanted intervention of the Government often leads to an appalling market condition for which the citizens only suffer.

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