MP procurement scandal: disinfectant prices vary 6,700-fold across municipalities

A detailed review of municipal procurement across Madhya Pradesh's urban local bodies has uncovered significant discrepancies in prices paid for identical goods, raising questions about the integrity of the state's public purchasing system.

The analysis, spanning three years of acquisitions by 374 civic bodies, reveals extreme price variations for basic supplies. One litre of phenolic disinfectant was procured at rates ranging from ₹5 to ₹33,500—a difference of nearly 6,700 times. Similarly, 60-watt LED light bulbs were purchased at prices varying from ₹306 to ₹11,800 across different municipalities, according to the findings.

These disparities suggest systemic weaknesses in standardized procurement protocols among the urban bodies. When multiplied across hundreds of purchases, the pricing anomalies represent substantial financial leakage from public resources. Officials estimate that adhering to average market rates across all 374 municipalities could have generated savings of approximately ₹250 crore during the review period.

The findings underscore longstanding concerns about transparency and competitive bidding in local government procurement. Experts attribute such variations to inadequate centralized purchasing mechanisms, insufficient price benchmarking, and inconsistent vendor selection processes across municipalities. The state government has not yet announced measures to address the procurement irregularities.