Kathmandu, July 20:

To protest against the government’s decision to impose excise duty on instant noodles, three major noodles manufacturers have stopped sale and distribution of all their products from last week.

In separate press releases issued today, CG Foods Pvt Ltd, a subsidiary of Chaudhary Group, Himalayan Snax and Noodles Pvt Ltd and Asian Thai Foods Pvt Ltd have protested against the government’s recent move to impose excise duty on instant noodles and hike import duties on raw and packaging materials.

CG Foods is the makers of leading instant noodles brand Wai Wai as well as Wai Wai Quick, Wai Wai Tenz and Gol Mol.

Himalayan Snax & Noodles produces Mayos, Ruchee, Shakalaka Boom and Hurrey brands of noodles, while Asian Thai Foods has Rumpum, 2pm, Fatafat, Joker, Phuchhe, Dautari, 2pm Atta and other variants under its brand portfolio.

The recently announced budget for fiscal year 2006-07 has imposed excise duty of Rs 10 on per kg on noodles and hiked import duties on palm oil and packaging materials by five per cent, each.

All three companies have stated that the recent decision would cause a 25 per cent price rise in noodles, which the industry would have to pass on to customers.

This will not only make the prices of noodles dearer but also hit customers. Instant noodles have already been established as the fast and easy-to-eat daily food item for many people, regardless of their level of income, adds the release.

The noodles makers have asked the government to withdraw all duties imposed on instant noodles in order to save people from the extra burden of inflation.

“The new provision will hurt the competitiveness of Nepali noodles and deter exports, which has picked up recently,” feel the companies.

Nepal Instant Noodles Association has already asked the government to withdraw its decision of imposing excise duty on noodles and raising customs duties on raw materials.