‘Businesses Exploit, Government Witnesses’: Is the Government Failing to Curb Inflation and Black Marketing Post-Disaster?
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In Kathmandu, the capital city, obtaining LPG gas has become extremely difficult. Prices of rice and lentils vary by store, sugar is scarce and more expensive, and many consumers complain about rising prices. Vegetable prices continue to surge daily.
“These are daily essentials on which the government should easily intervene. The daily life of consumers is becoming difficult,” says Bimala Khanal, chairperson of the consumer advocacy group Consumer Eye Nepal.
“In such scenarios, the government should have prepared in advance and developed alternative strategies. People suffer from disaster-related hardships; even managing the kitchen has become tough. The government was expected to harness the energy of youth and the power of the people,” she adds.
Director General of the Department of Commerce, Supply, and Consumer Protection, Motiram Sapkota, admits, “There have been some supply difficulties due to the disaster,” and acknowledges that approaching festivals has increased “additional pressure” on demand for consumer goods.
He points out, “Complaints about artificial price hikes have increased. We have intensified monitoring in the capital, deploying 11 teams and increased market inspections nationwide.”
Due to mounting market complaints, the Industry, Commerce and Consumer Welfare Committee of the House of Representatives summoned the Industry, Commerce and Supplies Minister and related parties for discussions on Wednesday.
“We have already issued directives to tighten market management and monitoring. We will review compliance and current conditions,” says committee chairman Rahbar Ansari.
“Current problems include rising costs and black marketing. Specifically, importing cylinders from the Terai region has caused significant logistical challenges.”
‘Pricing Based on Consumers’ Faces’
“Since the formation of the new government, inflation has been rising steadily, with a sharp increase in the past week,” explains consumer rights advocate Bimala Khanal.
“Taking advantage of the situation, sugar priced at 120 rupees has surged to 140 rupees in some places, and both cumin and coarse rice prices have risen by 20-30 rupees per kilogram,” she adds.
“The government has silently allowed businesses to arbitrarily set prices for cooking gas. Though the government claims an abundance of gas is entering Nepal, there is significant scarcity in the market. This makes consumers feel the government lacks seriousness.”
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The Department of Commerce, Supply, and Consumer Protection, responsible for market monitoring, states that random checks of purchase bills, warehouses, and price lists are being conducted as per regulations.
However, Vishnu Timilsina, general secretary of the Consumer Rights Protection Forum, expresses skepticism about the government based on the current market conditions.
He remarks, “The government claimed to have a three-month sufficient stock of food grains but attributing the shortage to disaster is ‘dishonest.'”
Only a week ago, the Food Management and Trade Company Limited and the Nepal Retailers Association confirmed to have three months’ worth of grain stocks.
“There’s a wide gap between consumers’ experiences and the government’s claims. Sugar that was under 100 rupees two months ago has now become much more expensive,” Timilsina said.
Chairperson Bimala Khanal says, “When the government fails even in simple tasks like enforcing price lists, businesses arbitrarily set prices based on ‘the consumer’s face.'”
Director General Sapkota added that swift action would be taken if price lists are not found for items without a Maximum Retail Price (MRP).
‘State Protection’ of Gas Prices
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Activists accuse the government of committing a crime against consumers by charging additional transportation fees amid a prolonged cooking gas crisis.
Since September 14, the road section at Krishnabhir on the Prithvi Highway has been blocked by a landslide, making it extremely difficult to connect Kathmandu with other regions.
The government has arranged to refill cylinders from gas factories in Bara, Parsa, Makwanpur, Chitwan, Nawalparasi, Dhanusha, and Mahottari and transport them to Kathmandu through alternative routes, bypassing gas factories in Kathmandu, Dhading, and Kavre.
In response to rising transportation costs, the Gas Industry Association decided on Thursday to increase the price of cylinders by 105.38 rupees.
Consumer Rights Protection Forum’s Vishnu Timilsina states, “Consumers are forced to buy cylinders under fabricated scarcity. They are compelled to purchase new cylinders and pay higher prices at new companies as well.”
“The government’s silence while businesses charge more than the regulated price is a negligent crime,” he stresses.
Although Nepal reportedly has 17.5 million cooking cylinders, only about 100,000 reach the daily market, raising doubts among consumer advocates about the existence of an actual shortage.
Khanal remarks, “The government claims more gas is entering than daily demand, yet it’s not available through normal channels. What’s the point of having to pay more money just to get it?”
