MRP explained: why pharmacies can sell medicines below MRP
What the maximum retail price on a medicine pack means, how price controls work in India, and why the same medicine can cost less at one pharmacy than another.
By the MedMate team4 min read
Quick answer
MRP is the maximum retail price, including taxes. A pharmacy can never charge more than the MRP, but it is free to charge less, which is why the same medicine costs different amounts at different shops.
Every medicine pack in India shows an MRP, the maximum retail price. As the name says, it is a ceiling, not a fixed price.
What the MRP includes
The MRP includes all taxes. No pharmacy may charge you more than the MRP printed on the pack, but any pharmacy may charge less.
Price controls on essential medicines
For many essential medicines, the government sets a ceiling price through the National Pharmaceutical Pricing Authority (NPPA) under the Drugs (Prices Control) Order. Manufacturers must keep the MRP of these medicines at or below that ceiling.
Why prices differ from shop to shop
- Pharmacies buy at different rates depending on their suppliers and volumes.
- Some shops pass on more of their margin as a discount to win regular customers.
- Different brands of the same salt can have very different MRPs.
How MedMate will help you compare
When it launches, MedMate will show each nearby pharmacy’s price for your whole cart, together with its delivery charge and time, so you can choose the best total rather than the lowest single item. Every medicine page on this site shows the MRP as a reference.
MedMate is launching soon in Bengaluru
Medicines from licensed pharmacies near you, with prices compared and delivery tracked. Join the waitlist to be first.
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