But one of the main reasons why companies have been reducing the quantity (without touching the pricing) is that in many categories especially biscuits, chocolates, chips… they are trying to hold on to certain price-points which the consumers and retailers are comfortable with. Like in the biscuits business it is the Rs 5 which is very critical and the SKU at that price point tends to be the volume driver for many brands. The moment the regulation of standard sizes is introduced many of these brands will have to vacate that price slot and move higher or lower price points. The other reason reducing the quantity is to indirectly pass on the price hike to the consumer.
I feel that this regulation is not really needed for, on two accounts, one is the assumption that consumers are not smart to realize the change in the product quantity. He might get fooled once, and then he would realize & factor- in his next purchase. The second reason is that the convenience which certain price points give, both to the retailer as well as the consumer; imagine giving 7.25 for a 100 gm biscuit packet..