This is why a bottle of water is so expensive at the airport

The most prominent reason for expensive water bottles is that the manufacturers pack these bottles specifically for airports, with an inflated MRP and it happens because of variations in quality, quality, packaging, designing and other product differentiation. Keeping the consumer complaints in mind, Ministry of Consumer Affairs, Food and Public Distribution had brought in an amendment to the Packaged Commodities rules (effective from January 1, 2018), prohibiting such dual-pricing. But very soon the amendment was set aside and the manufacturers and retailers made a way out, where they sell highly-priced new brands which are just meant for the airports.

If reports are to be believed, the Airport Authority of India (AAI), has asked the vendors at the airports to sell the products at MRP and not above that. This action has been in the context of small cities to make thing affordable for the masses.

One of the primary reasons for the difference in the price of water bottles and packaged foods are that the hotels and restaurants can legally sell bottled water and other packaged products above MRP because they render services, which cannot be governed by the Legal Metrology Act, 2009.

If you have ever observed, the costing of a water bottle at the airport and premium malls is the same and the reason is the location of both the properties. According to experts, at both the places concessionaires, have to pay real estate cost, which are 5-6 times higher than other retail locations, which makes it capital-intensive.

According to experts, the changing dynamics of the GST structure is another reason because of which the MRP and labeling of food commodities at the airport are higher. This has more to do with packaged food companies as compared to restaurant outlets.

Well, keeping all the factors in mind, the positive side of the story is the actions by the AAI to control the prices and stand by it. We hope very soon the majority will be able to afford eatables at the airport.