Clause 2 Section (a) of Black Marketeering Act 1975 says traders can make 20 percent profit and selling commodities over the margin is punishable by law. "The act stipulates taking over 20 percent profit is black marketeering," said Bishnu Prasad Timilsina, lawyer and consumer right activist.[break]
Sadly, however, a survey conducted by Republica revealed that traders, particularly fruits vendors have been flouting the act by selling fruits keeping as much as 60 percent profit margin.
On Saturday, retailers in different parts of the capital like Anamnagar and New Baneshwar apples were being sold at Rs 140 per kg, through the wholesale rate was Rs 85 per kg.
Similarly, oranges were being sold at Rs 90 per kg, pomegranates Rs 250 per kg and mango Rs 100 per kg, though the wholesale rate of the items for the day was Rs 55, Rs 200 and Rs 70 per kg respectively. Fruits vendors attributed high rental charges of their outlets and the ever increasing cost of transportation for the huge disparity between the wholesale and retail rates.
Fruits wholesalers admitted that the retailers were taking huge profits.
“We have no idea on what basis the retailers fix their prices,” said Binod Pandey, general secretary of Nepal Fruits Wholesale Association (NFWA).
Timilsina, on the other hand, said fruit vendors easily dupe consumers because the latter do not keep track of how prices move in the wholesale market and market regulators do not do justice to their profession.
Market inspectors of the Department of Commerce (DoC) said they were not aware of such a huge gap between wholesale prices and retail prices of fruits.
“We have not received any complaint against fruits traders,” said Bal Bahadur Malla, assistant supervisor at Kathmandu District Administration Office (DAO).
He, however, said that DAO is authorized to enforce Black Marketeering Act.
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