India Allows Companies to Continue Using Old MRP, Labelling, and Packaging Until December 31, 2025

On September 9, 2025, the Indian government announced an extension allowing companies to continue using existing Maximum Retail Price (MRP), labelling, and packaging until December 31, 2025. This decision provides temporary relief to businesses navigating regulatory changes in packaging and labelling norms. In this article, we explore the details of this extension, the reasons behind it, and its implications for India’s consumer goods sector and economy. Business Standard

Extension Details: Old MRP, Labelling, and Packaging

The government’s decision permits companies to sell products with existing MRP, labelling, and packaging without adopting new regulatory requirements until the end of 2025. Key highlights include:

• Deadline Extension: Companies can use current packaging, including old MRP and labelling formats, until December 31, 2025, delaying compliance with updated norms.
• Affected Sectors: The extension applies to consumer goods, including FMCG, food, beverages, and pharmaceuticals, impacting companies like Balaji Wafers and Hindustan Unilever.
• Regulatory Context: The move follows proposed changes to packaging laws, such as mandatory nutritional information, eco-friendly materials, and standardized labelling.
• Business Relief: The extension aims to clear existing inventory and reduce compliance costs during a transitional period.

This decision comes amid India’s dynamic economic landscape, with trends like LG India’s ₹15,000 crore IPO and PhysicsWallah’s ₹1,426 crore salary expenditure.

Reasons for the Extension

Several factors prompted the government to extend the deadline:

• Industry Pressure: Companies, especially in FMCG and retail, requested more time to clear old inventory and adapt to new labelling and packaging standards.
• Economic Considerations: The extension prevents disruptions in supply chains and price hikes, supporting businesses amid global challenges like China’s 4.4% export slowdown.
• Consumer Protection: Allowing old MRP ensures price stability, benefiting consumers during high-demand festive seasons like Diwali.
• Implementation Challenges: Delays in rolling out new packaging norms, including eco-friendly materials, necessitated a grace period to avoid penalties.

Implications for Businesses and Consumers

The extension has significant implications:

1. Business Continuity: Companies can clear existing stock without repackaging costs, benefiting firms like Balaji Wafers, which is raising ₹4,000 crore.
2. Consumer Impact: Stable MRPs prevent immediate price increases, ensuring affordability during festive shopping periods.
3. Regulatory Transition: The extended timeline allows businesses to prepare for compliance with new norms, such as sustainable packaging, by 2026.
4. Market Dynamics: The decision supports India’s $1 trillion retail market, aligning with trends like Blinkit and Zepto’s 1 billion order milestone.

The Bigger Picture: India’s Consumer Goods Landscape

The government’s decision reflects India’s balancing act between regulatory modernization and economic stability. With India leading global cryptocurrency adoption and initiatives like Digital India, the country is navigating a tech-driven economy. The extension aligns with other 2025 trends, such as BYD India’s 10,000 vehicle sales milestone and quick commerce ad rate surges, highlighting the consumer goods sector’s resilience.

Globally, the move parallels efforts to adapt to economic shifts, such as Russia’s digital ruble trials and Japan’s Digital Yen plans, emphasizing flexibility in regulatory frameworks.

What’s Next for Companies and Compliance?

As the December 31, 2025, deadline approaches, key developments include:

• Companies transitioning to new labelling and packaging standards, including eco-friendly materials and detailed nutritional data.
• Increased government guidance to ensure compliance with updated norms by 2026.
• Potential extensions or further relief if supply chain challenges persist.
• Consumer awareness campaigns to prepare for new packaging formats post-2025.

Conclusion

India’s decision to allow companies to use old MRP, labelling, and packaging until December 31, 2025, provides critical relief to businesses while maintaining consumer affordability. As the country balances regulatory updates with economic growth, this extension supports India’s vibrant consumer goods sector. With global tech and economic trends shaping 2025, the move underscores India’s strategic approach to fostering business resilience.