‘Our main  objective is to ease supply  situation and put the market  in order’

At a time when malpractices are spreading in the market due to the short supply of essential commodities, the government’s authorised market monitoring body is seen to be ineffective. The Department of Commerce and Supply Management was recently split to form two separate entities — the Department of Commerce and the Department of Supply Management and Consumer Protection. This move has adversely affected the services that the department was supposed to provide to the public. The decision was carried out following the government’s move to break up the Ministry of Commerce and Supplies to form two separate ministries — the Ministry of Commerce and the Ministry of Supplies. The Ministry of Supplies recently appointed Gokul Prasad Dhital as the Director General of the Department of Supply Management and Consumer Protection. Execution of consumer protection laws falls under the jurisdiction of the newly formed department. Pushpa Raj Acharya of The Himalayan Times caught up with Dhital to know more  on how the department has been preparing to ease the supply situation and ramp up the market monitoring process to control unethical practices. Excerpts:

Unethical practices like black marketing are rampant in the market due to short supply of commodities. What is the Department of Supply Management and Consumer Protection (DoSMCP) doing to control such practices?

Since the government has formed DoSMCP as a separate department for the execution of laws related to supply and consumers’ welfare protection, we have already started delivering the services extended by the law. Our main objective is to ease the supply situation and put the market in order. Despite limited human resources, we are looking into all viable options to conduct market monitoring in an effective and efficient manner. We have mobilised newly enrolled government officers in the market monitoring team and they are being accompanied by the authorised officials from District Administration Offices or from our department as well as security personnel. We have mobilised the fresh officers after providing them proper orientation about consumer protection laws and how the market functions. A total of 185 officers were mobilised in the last two weeks in various districts including Kathmandu Valley and an additional 169 officers have been mobilised from today. The officers will conduct market monitoring for at least one month and submit their reports to the department. Based on these reports, the department will assess the lapses witnessed in market monitoring and introduce new measures to improve the process. Apart from that, our parent ministry has been very cautious regarding the matter and the Minister for Supplies has been conducting random inspections in the market. Recently, an inspection team led by the minister and comprising officials from DoSMCP, Nepal Bureau of Standards and Metrology, consumer rights activists and officials from Nepal Oil Corporation monitored the NOC depot at Thankot and some gas bottling plants in Dhading district and initiated action against those who were found guilty of malpractices.

You have stated that DoSMCP has mobilised fresh officers on a temporary basis. What would be the fate of market monitoring once the newly enrolled officers complete their assigned task?

At present, we are simultaneously engaged in setting up our office and delivering the necessary services to the people who have been facing difficulties due to the short supply. We have formed a temporary mechanism by mobilising freshly enrolled government officers after providing them the necessary orientation. I believe that by the time they complete their assignments, we will have a full-fledged office. We are preparing to set up a grievance hearing cell, so that the department can mobilise market inspectors promptly. We are also in the process of creating various positions within the office to appoint required staff members. DoSMCP is committed to delivering the services required by the public and as authorised by law. We are a newly formed department and in the process of setting up the required mechanisms. Hence, at present, we have resorted to other alternatives, so that delivery of essential services is not hampered.

Another intriguing thing is that Nepal Police has taken action against some businesses involved in malpractices and filed cases against them in the court. But there seems to be no action being taken by the department. What do you have to say?

Basically, we have to look at the situation from both the government’s and the private sector’s perspectives till the supply situation eases. The root cause of the current short supply of fuel, medicines and other essential commodities is the disruption in supply lines from India that continued for nearly five months since the last week of September, last year. I don’t mean to say that all traders have been conducting their business ethically. We know that there are some business people who have been involved in various malpractices like hoarding and black-marketing. Dealing with all these problems to protect the consumers’ welfare is critical. In this regard, we have been making consumers aware about their rights, so that they can raise their voice against such malpractices. We have warned the traders to follow ethical practices before the department takes any action. I cannot say what the then Department of Commerce and Supply Management did in the past. But from the very first day I assumed office, we have prioritised raising awareness among consumers. We also started regular market monitoring. On the other hand, there are also chances of adverse consequences if the department comes down heavily on traders. As we all know that there are very strong umbrella bodies of private sector businesses united under various associations, they can create further hassles in smooth supply of goods by launching protests against government action citing short supply. It is a very delicate situation. We have to first ensure smooth supply of goods and then we have to encourage the private sector towards competition. That does not mean we will turn a blind eye to whatever the private sector does citing short supply. We are aware of the malpractices prevalent in the market and have mobilised market monitoring teams to curb such practices. Once the supply situation normalises, we will also take action against the cartel system, which has remained a deep-rooted problem in promoting competition. We are also preparing to give information regarding the wholesale and retail prices, especially of essential commodities, to the public on a weekly basis.

Do you think it is possible to abolish cartels that apparently have strong political backing?

We will seek high-level political commitment first before taking action against the cartels. This malpractice has been an obstacle to promoting competition in the market, which is one of the fundamentals of a free market economy. There are cartels in practically all the sectors. Until we are able to get rid of such cartels, we will be compelled to face various problems in the market.

Does the department need new laws to attain its goal of keeping market in order?

The existing laws are sufficient to keep the market in order. I think some amendments might be required to make department more powerful. As our constitution has guaranteed the rights of consumers, as an authorised body for consumer protection, DoSMCP has to play a vital role in the coming days.