Understanding Price Reasonability on GeM Portal

GeM doesn't just accept whatever price a seller lists — the portal has mechanisms to flag prices that appear unreasonably high or low relative to historical or market benchmarks.

Price reasonability checks are meant to protect both buyers (from overpaying) and the integrity of the marketplace generally (from artificially low prices designed to win orders unsustainably). Listings or bids that fall well outside expected ranges can get flagged for review.

For sellers, this means pricing strategy on GeM isn't just about undercutting competitors — a price set unrealistically low to win a bid can trigger scrutiny, delay order processing, or in some cases even disqualification if it can't be justified.

The practical takeaway: price competitively, but base it on genuine cost calculations you can defend, rather than treating price reasonability checks as an obstacle to route around.

Frequently Asked Questions