Kathmandu, September 21:

Laws, acts and regulations have been made since 1975 in order to ensure the smooth flow of essential commodities. However, consumers still suffer due to a lack of essential commodities such as petroleum products, sugar, salt, rice and pulses, edible oils and other essential medicines despite repeated assurances from government organs.

Consumers do not often get required essential commodities in time and at a proper price, thanks to weak supply management, particularly during festivals. Black-marketeers exploit public in terms of prices and availability of essential commodities, a study shows. The study is being released on the eve of Dashain and Tihar. Pointing out reasons for disturbances in the supply of essential commodities to consumers, Chandi Raj Dhakal, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) commented that peace and security is a major hurdle in supply management. Besides these, lack of transportation, weak networking and chain of command and worthless monitoring mechanisms have contributed immensely in creating hurdles in the supply management, commented Dhakal.

The study completed by Rajendra B Shrestha on September 16, for Economic Policy Network, a joint project of Asian Development Bank (ADB) and the ministry of finance, has clearly stated problems related to legal, institutional, policy, administrative and geographical areas for smooth supply of essential commodities. The study done on ‘Supply management of essential commodities’ which is yet to be made public, stated ‘Despite laws and rules having been made on different occasions, the movement of consumer goods has been constrained due to existing acts, which empowers district administrators to restrict the movement within and outside the district”. This has distressed consumers.

Weak monitoring mechanism coupled with unfair trade practices have hit consumers hard when it comes to prices and availability of essential commodities, the findings of the study say. Usha Bhattarai, a consumer from Koteshwore, Kathmandu criticised the government and producers saying that there is no proper supply of essential commodities even in the Kathmandu valley. Even the available commodities, she added, are sold at a high price.

Dhakal, president of FNCCI said, to improve supply management, concerned bodies such as the government, in coordination with business organisations, have to create a strong data bank, conduct a study as per the requirement of the districts and implement policies in close consultations with businesspersons. What is important is that the supply of commodities should differentiate between local and foreign goods which will help in fixing prices and regulate effective flow of essential commodities, opined Dhakal.

Consumer Bhattarai questioned, “Can the government ever implement consumer protection laws to protect the consumers?” Public sector institutions like Nepal Food Corporation, National Trading Ltd and Nepal Oil Corporation (NOC) have failed to work in a businesslike manner with effective supply management techniques, according to the study.

Importantly, the private sector is not keen on supply management and retailers in rural and remote areas are not monitored. These are troubling the consumers, says the study.

Some of the major recommendations of the study are that VAT should be abolished on essential commodities, ope-n-tender system needs to be implemented with transparency for supplying essential items and tax exemptions upto Rs 20-0,000 need to be given.