Price Gouging Is Real. Turning Away Is Not an Option.
- Innovique
- 3 hours ago
- 3 min read
In our daily lives, whether navigating the busy streets of Chandni Chowk or residing in a Mumbai high-rise, a common concern arises: rising costs. Groceries, milk, vegetables, medicines, everything seems to be spiralling out of control. And frankly, it no longer feels like mere bad luck.
Zohran Mamdani's point really resonated with me (Read this article in NYT by Tim Wu - https://www.nytimes.com/2026/02/17/opinion/price-gouging-mamdani.html). He suggests that when living costs rise, it’s not merely “the market' or an unavoidable natural phenomenon. More often, it’s a system that enables large corporations to exploit their power to hike prices because they can. This concept feels especially relevant in India.
Our household budgets show that nearly 50% of rural and about 40% of urban spending is allocated to food. When the prices of essentials like tomatoes or milk increase, as they recently have, it’s not just a news statistic. It has a tangible impact on whether families can meet their monthly expenses. For many households, a sudden price hike forces them to reduce spending in other areas, such as nutrition, healthcare, or education.
This trend clearly shows the growing strain on our local kirana stores. Fast-delivery apps like Blinkit and Zepto are rapidly growing, promising grocery delivery in just 10 minutes (although the Indian government has banned such claims). While I personally find the convenience appealing, using these services myself, there’s a hidden downside. Big platforms can push suppliers to offer bulk discounts, which often results in higher prices for small shopkeepers. As a result, your local kirana shop owner bears the burden, despite having no fault in the matter.
As online retail continues to expand, pricing authority is gradually concentrating in fewer entities. When this occurs, prices no longer mirror fair competition but instead indicate which players hold the most bargaining power. I think we should start seeing essential goods, like food, water, and basic medicines, not just as products, but as necessities tied to dignity and survival.
In my neighborhood, I’ve observed a troubling trend. Basic necessities often cost significantly more in residential areas with limited options, especially where we don't have the services of BlinkIt and Zepto, kind of quick commerce platforms. When there are no alternative shops nearby, residents end up paying higher prices. This is no accident; it’s exploitation. Technology should serve the public's interests here, not just corporations'. Some critics argue that companies might circumvent the rules by adding service charges or delivery fees. While this risk is genuine, it shouldn't be a reason to do nothing. Laws are meant to discourage abuse, not to be flawless from the start. Focus on the biggest offenders first and establish clear boundaries.
It’s also crucial to clarify what this is not. No one expects the government to regulate the prices of luxury goods, such as designer watches or high-end phones, since these are personal choices. The emphasis should be on the “survival basket”: essentials like food, water, and life-saving medicines. Studies by groups like the Groundwork Collaborative indicate that aggressive profit-seeking by large corporations can, at times, significantly contribute to inflation. If this is accurate, then strict anti-gouging regulations do not hinder innovation; rather, they encourage companies to compete honestly and enhance their products rather than devise clever ways to overcharge.
When markets repeatedly fail in predictable patterns, it’s unrealistic to expect that everything will resolve on its own. Sometimes, government intervention is necessary, not to hinder businesses, but to ensure the system benefits everyday people. Without action, we risk a future where a few apps secretly determine what Indian families can afford to buy. That’s a future we should all work to prevent.
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