India’s consumer market is very diverse and complex. Yet, two price points, ₹5 and ₹10, hold a special place in the fast-moving consumer goods (FMCG) sector. These prices have remained popular for years, despite changes in taxes and inflation. But why are these particular prices so important? Let’s explore.
In retail, round numbers like ₹5 and ₹10 have a strong psychological impact. They are easy to understand and handle, especially for those who mostly use cash. For millions of people in rural and semi-urban India, these prices feel affordable and safe. They don’t have to think too much before buying. This makes ₹5 and ₹10 ideal for mass consumption.
Most of India’s consumers belong to low-income or lower-middle-income groups. For them, affordability is key. A product priced at ₹15 might not sell well, but a ₹10 product of the same kind can be very popular. This shows that even a small price difference can affect buying decisions greatly.
FMCG companies rely on selling large volumes at low prices rather than earning big profits on each item. So, keeping prices stable is very important. If a company raised the price of a ₹5 biscuit to ₹7 or ₹8, many customers might stop buying it.
Instead of raising prices, companies often reduce the quantity inside the package when costs go up. This way, the price stays the same, but consumers get slightly less product. This approach helps companies keep their loyal customers and avoid losing market share.
From packaging to shelf space, the entire supply chain is designed around these price points. Small shops, or kiranas, especially like these low-priced products because they sell quickly and bring customers back regularly.
If companies change these prices, it disrupts not only consumers but also distributors and retailers. That’s why businesses prefer to stick with ₹5 and ₹10, even when government taxes change.
In the past, ₹1 and ₹2 were common price points, but now ₹5 and ₹10 dominate. This shift shows that people’s buying power has improved. ₹10 products are expected to offer good quality and value.
As more people move out of poverty, ₹10 will likely become the lowest price point for many products in India’s mass market.
Read more: How Much Tax is Applicable on Royal Stag Whisky in Maharashtra, UP, and Karnataka?
₹5 and ₹10 are not just prices; they are symbols of affordability, trust, and mass access in India’s FMCG market. Companies guard these price points carefully because they are essential for reaching millions of consumers and staying competitive. Even with tax changes and rising costs, ₹5 and ₹10 remain at the heart of India’s everyday buying habits.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Sep 12, 2025, 2:49 PM IST
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