A snap survey conducted by myrepublica.com found that Surya ´hard´ brand of cigarettes and Tuborg beer are not being released to the retail market in sufficient amounts, giving leeway for some retailers to arbitrarily raise the prices. [break]
"For the past one week, my wholesaler hasn´t released more than four packets of Surya ´hard´ cigarettes per day, whereas demand at my shop for this brand hovers around one to one and half cartons," said Indira Faiju, owner of Sampanna Store at Maharajgunj.
Ishwor Upadhyaya, owner of a retail store at Nayabazar, echoed Faiju´s views. He had gone to buy two cartons of Surya ´hard´ cigarettes the other day, but had to return with only two packets.
The same is the case with Tuborg beer, one of the most popular beers in the country.
Ambika Shrestha, owner of Shrestha Kirana Store at Sankhamul, used to stock two boxes of this beer brand per day. But she has not been able to lay her hands on more than two boxes over the last one week. "Per day demand for Tuborg at my store stands at one and half to two boxes," she said.
These are common problems faced by most of mom-and-pop stores in town this time of year. And this is giving some retailers an opportunity to profiteer.
The other day, a store at Jyatha asked this scribe Rs 80 for a packet of Surya ´hard´ cigarettes. The maximum retail price of the brand is Rs 70. As for Tuborg beer, retailer Upadhyaya told myrepublica.com that a box of Tuborg, which costs Rs 1,490, is being sold at up to Rs 1,600 in the Balaju area.
Although no one can give a clear-cut reason for this supply crunch, manufacturers´ statements that they have not reduced production give a clear indication that rampant hoarding is creating the artificial shortages.
A senior official at Surya Tobacco, requesting anonymity, told myrepublica.com that Surya Tobacco has not lowered production of Surya ´hard´ brand of cigarettes. Ashish Bista, marketing manager of Gorkha Brewery, also said something similar. "May be stockists are hiding the products as the government is preparing to announce the budget," he said.
Prior to the budget announcement, most stockists hoard such consumer items as they deem that the government will hike taxes on tobacco and alcoholic beverages through the budget speech. An increment in taxes allows stockists to sell the products at higher prices later on.
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