Customers pay more due to traders dispute

Customers paid 'heavily' for traders' dispute as the Gold and Silver Management Committee failed to fix the price unanimously for the second day today.
The consumers paid Rs 1,125 more in the domestic market compared to the international price due to their dispute and low supply of gold and traders dispute.

Due to very low gold supply in the market, Nepal Gold and Silver Dealers’ Association (Negosida) has differed from fixing gold and silver price. But Nepal Gold and Silver Art Association (Negosaa) president Rudra Bahadur Baraili said that the two associations -- Negosaa and Nepal Gems and Jewellery Association (Negja) -- fixed the trading prices of gold for the domestic market.

"We fixed the price at Rs 31,370 per 10 gram and silver at Rs 514 per 10 gram for Monday," he said, adding that they are aware of less supply of gold but the committee has the responsilbilty to fix the price for domestic market. The domestic market witnessed different prices -- yesterday and today -- as the negosida traders didnot follow the price fixed by the committee.

The committee was formed after the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) brokered a settlement between three warring trade associations -- Negosida, Negosaa and Negja last Wednesday.

As per the agreement, the Gold and Silver Management Committee will develop an effective working policy to fix the price and study the domestic market demand of precious yellow metal. According to agreement the general secretary Maniklal Shakya of Negosida will work as secretary of the commitee that was the demand of Negosaa and Negja.

But Negosida thinks that they were betrayed by the central bank. "We are not going to fix gold price until we have a joint meeting with the central bank, Negja and Negosaa," said Tej Ratna Shakya, president of Negosida.

They blame the Nepal Rastra Bank (NRB) for not increasing the present quota of gold even after the formation of the management committee including the warring associations. "We were told to come unitedly," he said adding that they were united but the 10-kg quote per day is not increased by the central bank as promised.