Monday, September 17, 2012

CNI concern on MRP decision

Confederation of Nepalese Industries (CNI) has also shown serious concern over the government's market controlling policy. "At a time, when the world is moving towards the open economy, the government is backtracking," it said, adding that the price hike in the domestic market depends on more non-economic factors like cartel of transportation and the government, despite improving the supply system, is trying to control the market that will fuel the informal economy.
Earlier Federation fo Nepaless Chambers of Commerce and Industry (FNCCI) had also on Wednesday objected the government's move of decalring the Maximum Retail Price (MRP) on essential commodities backtracking the open market operations.
The private sector is suspecious of government's intention as the government move would fuel informal economy and promote cartel in the market and woill not let the prices to fall below the government rate, even if the prices are low.
The caretaker prime minister Dr baburam Bhattarai led government had fixed MRP of 15 commodities on Thursday based on Panchayati period law, when the government used to have control over market. The action has immediately drawn criticism from private sector — Federation of Nepalese Chambers of Commerce and Industry — and consumer groups as it was 'against open market operations' and 'based on false price', due to the changed economic model of the country currently.
Similarly, economists have also claimed that it would be difficult to be implemented and the government is promoting cartel officially through the MRP, apartfrom barring the buyers their right to get the commosities ion low price if the prices fall in the internal or external market.

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