‘FNCCI is against syndicate system’

Kathmandu, May 24 :

Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an apex body of the business community, has declared today that FNCCI is against the ‘syndicate’ system as it is not practical in the free market economy.

Syndicate system was re-introduced by the truck entrepreneurs recently that has caused supply constraints and monopolisation of truck business.

Federation of Nepal Truck-Tanker Entrepreneurs Association (FNTTEA) is associated with the FNCCI and it is mandatory for FNTTEA to abide by FNCCI’s rules.

The syndicate system or token system was cancelled about one-and-a-half years ago in Narayani zone. FNTTEA is re-introducing the system, which is not a good sign, said Kush K Joshi, vice-president of FNCCI.

He was of the view that ‘syndicate system’ should be demolished across the country and people should be free to operate their businesses — in whatever way they want. “This system is totally illegal,” he said.

Over Rs 40 billion has been invested in the Nepal’s bus and truck business. Banks have invested huge amount without doing proper study on what types of people are investing in the transport sector, said Joshi. He criticised the banks for investing haphazardly.

Dipak Shrestha, president of Makwanpur Chamber of Commerce and Industry (MCCI) urged all concerned authorities to take the issue seriously as it has created unnecessary problem.

He said that MCCI would not tolerate ‘illegal syndicate system’. “Discussion between FNCCI and truck entrepreneurs would bring positive result,” he added.