Prices on govt's GeM portal up to 10% cheaper than Amazon, Flipkart: Economic Survey

A comparison of prices of various commodities on the Government e Marketplace (GeM) portal with online platforms such as Amazon and Flipkart shows that GeM prices were 9.5% lower, an analysis in the Economic Survey 2021-22 showed on Monday.

10 out of 22 commodities in the sample were cheaper on the GeM portal as compared with other online platforms, according to the survey.

The government in 2016 had set up a dedicated e-market known as GeM for purchase of certain standard day-to day-use goods. The General Financial Rules 2017 mandates all ministries and departments to procure goods and services available on GeM from GeM.

For example, the price of Samsung Basic Television TV 43 Inch LED Backlit LCD on the GeM portal was ₹40,000 compared with ₹43,900 on Amazon and Flipkart, the survey claimed. The price of Bajaj Pulsar 220 F stood at ₹1,18,250 on the government’s portal compared with ₹1,30,827 on Bikewale.com (Ex-showroom price in New Delhi).

Other items that were cheaper on the GeM portal include Parker Jotter Standard Ball Pen, Rorito Greetz Gel Pen Maxtron Gold Robotic Fluid Ink System Pen, Milton 1500ml thermos, Nilkamal Dustbin 60 litres, Godrej Interio Elite Mid Back Chair, and Ambrane 27000mAh Li-Polymer Powerbank with Type C among others.

“Anecdotal evidence suggests that prior to GeM, government procurement prices were much higher than the prices prevailing in the market and there were constant complaints about inefficiency and rent seeking. The use of this e-marketplace has resulted in a substantial reduction in prices in comparison to the rates used earlier, with average prices falling by at least 15-20%, up to 56%,” says the survey.

These prices, according to the survey, are broadly in line with the assessment of GeM conducted by the World Bank, which found that GeM enabled an average savings of 9.75% on the median price for the period between February 2019 and January 2020. “The maximum savings in the top five categories ranged from 23.5% to 60.5%. The study attributed this, in large part, to increased participation per bid and better price discovery.”