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08 February 1998

Some hard facts about soft-drink prices 

Namrata Singh  
Mumbai, Feb 7: Soft drinks can be hard on the purse, depending on where you consume them. Those who choose to combine an evening out at the beach or the promenade opposite the Oberoi in Mumbai with a bottle of soft drink, have to shell out an extra Rs 2.5 per bottle - a whopping 33 per cent in addition to the maximum retail price of Rs 7.50.

This is in complete contrast to the situation on the railway subway at Churchgate where the drinks are sold at a discount to the marked price.

"Its not as though we pocket it," says one of the soft-drink vendors who without exception imposes the 33 per cent levy on customers. The unofficial money finds its way to the municipal commission officers in Mumbai and the police, it is explained.

The soft-drink vendors at Nariman Point, each of whom stock around six crates of 24 bottles each, pay out an approximate amount of Rs 4,000 per month to the police and municipal commission officers, who frequently demand payments in lieu of allowing the vendors to sell in an areathey are not supposed to. Cold-beverage cans are sold at Rs 15, when their MRP is no more than Rs 13. A mineral water bottle, with Rs-8 MRP, is sold for Rs 10.

Vendors, when quizzed about the extra amount payable, talk about extortion by municipal commission inspectors and the police.

The daily sales from these areas are considerable, given that they are at prime Mumbai tourist and fun spots. Apart from Nariman Point, the unofficial rates apply also at such popular spots as the Bara Chowpatty, Juhu Chowpatty, and others.

The cold-beverage companies, naturally, claim that they have no part to play in the 30 per cent-plus unofficial levy on the high volumes that are sold at these popular outlets and tourist spots. However, they do not claim ignorance of the fact that their beverages are being sold where they are not supposed to, and that they are sold at a higher price than the maximum retail price registered with the government of India.

When contacted, Cadbury Schweppes managing director Ashok Jainsaid that the higher price at such places does not hurt the company as the `hike' is proportionately levied on all the brands. The vendors claim that the authorities swoop down on them during the day, carry their crates off, and release them for hefty payments of up to Rs 1,500.

At Marine Drive, for instance, this happens twice a month on an average. They also claim that when the promenade is thick with late-night walkers, it is the turn of the police to strike with demands of on-the-sly bribes for allowing them to ply their trades. Some claimed that each policeman on duty settles for no less than Rs 100.

BMC commissioner Girish Gokhale when contacted questioned: "Why does the consumer pay the price which is higher?" While not denying that some authorities would be taking `hafta' from these unathorised hawkers, Gokhale said that the BMC is trying hard to curtail this wrongdoing through surprise visit squads. Gokhale said that there has been no morcha from these hawkers against a hike in the `unauthorisedorganisations and trade removal' fine charged by the BMC against these unauthorised hawkers, which was undertaken a month ago.

While this phenomenon is well-known to the consumers and the authorities and is rampant in Mumbai, the fact of the matter is that it is the consumer (said to be the king) who is finally paying for the extortion, partly responsible for generating black money. "It is an outright loot," said an avid evening walker on Marine Drive.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.



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