The new set up is being worked out because the government has failed to provide "relief" and live up to its commitment to check undue price rises through the present weak set up that looks after supplies related issues. “We have already started the necessary homework for establishing a Supply Management Department to deal with supplies and pricing related issues,” said Ganesh Dhakal, joint secretary at Ministry of Commerce and Supplies (MoCS).
He told myrepublica.com that the new department will have supply inspectors who will always keep track of the availability of essential commodities in the market and also monitor their pricing and quality. They will also work to effectively enforce laws pertaining to consumers´ rights, free and fair market operations and to restrict anti-competitive practices.
MoCS is also developing a mechanism that will foster better coordination among state-owned enterprises through which the government implements relief packages in the market.
All these new initiatives are being taken after the newly formed government instructed the ministry to devise tools and mechanisms that will give relief to consumers. The government has deemed the “improvement of supplies” and the “checking skyrocketing prices of essential goods” as its top priority agenda in the Common Minimum Program, which the leaders of 22-party coalition approved recently.
With this priority list in place, the ministry is now mulling over finalizing its supply policy within three months.
In an effort to give relief to the general people, the government has already intervened in the sugar and rice markets, by supplying those commodities through Nepal Food Corporation (NFC) at subsidized rates. The corporation is supplying local sona mansuli and Japanese rice at Rs 28 and Rs 40 per kg, respectively.
Likewise, it is also retailing sugar at Rs 51.50 per kg. The Salt Trading Corporation and National Trading Limited too are supplying sugar to retailers at the subsidized rates of Rs 51.75 per kg. This intervention has dragged the retail price of sugar down, from Rs 60 per kg to Rs 53 over the last couple of weeks.
Moreover, the NFC has lately started selling a total of 100,000 liters of edible oils at a subsidized rate. It is supplying the product at prices some 30 rupees cheaper than the market rates per liter.
But what´s behind the price rises, in the first place? Purushottam Ojha, secretary at the MoCS, attributed the persistent rise in the prices of food items to trader cartels. "The rise is artificial and it has continued even as global prices of food items and edible oil have receded significantly," he said.
At a program organized by the Nepal Chamber of Commerce (NCC) to discuss the current price rises in the market, Ojha vowed to take stringent action against those who flout free-market norms and resort to anti-competitive practices.
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