Kakinada: Large firecracker traders, who invested substantial funds this Diwali, reportedly made huge profits by inflating prices, using misleading labels, and offering discounts of 70-75 per cent. This strategy forced smaller traders to resort to distress sales on Thursday, clearing their stock at reduced prices. Influential traders, some with political backing, allegedly used false labels to hike prices. For example, a box of flower pots, typically priced at `936, was marked at an inflated `4,056 in shops near Bhanugudi, Main Road, and other Diwali markets in Kakinada.
According to a worker at a Diwali shop, these inflated prices were then presented with various discount rates to lure customers. Many products lacked manufacturer details, accurate MRPs, and other essential labelling, leaving customers vulnerable to unfair prices.
Social worker D. N. Ramesh pointed out that such malpractices often occur at stockist points, with large traders managing to obtain falsified labels. He urged the state government to take strict action, particularly through the commercial and legal metrology departments, to protect middle- and working-class Diwali shoppers from such exploitation.
This year, district administrations in Kakinada, Konaseema, and East Godavari granted temporary licenses to approximately 1,350 firecracker shops. Legal metrology department deputy controller N. Janardhana Rao reported that nine cases have already been filed against shops lacking proper labelling, accurate MRPs, and manufacturer information.