Retailers, who Republica talked to on Sunday, said wholesalers have not only reduced supply but are also raising price in an arbitrary manner. They say wholesalers have started hoarding cigarettes after news outlets reported that the government was preparing to hike excise duty on cigarette and liquor through the budget for fiscal year 2015/16."It is very difficult to get cigarette as per our demand. Not only are wholesalers reducing supply, they are also overcharging us for cigarettes," Ram Kumar Rai, a retailer, told Republica.
Rai said he was charged Rs 50 more for a box of 'Surya' cigarette consisting 10 packets. "The wholesaler asked me to pay Rs 1,450 for a box of cigarettes which cost only Rs 1,400," he added.
Madhav Timalsina, a retailer of Sundhara, had to pay Rs 1,500 for the same pack. "Wholesalers have been overcharging us citing short supply," he said, adding, "We are not getting cigarettes as per our demand, as wholesalers are hoarding them anticipating duty hike in upcoming budget."
Manufacturers, however, said they have not cut down supply of cigarettes. "We have increased supply by around 10 percent recently," Ravi KC, vice president of Surya Nepal, told Republica. "Our authorized dealers and cycle-boys have not reported us about shortage and hoarding of cigarettes."
KC, however, said some wholesalers and unscrupulous traders might be involved in such foul play.
Meanwhile, officials of Department of Commerce and Supply Management (DoCSM) have vowed to intensify market monitoring and take needful action against anyone found guilty.
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