Economy

Govt mulls revision of market regulation

Published by Octron on January 12, 2011

The government is mulling to revise market regulation and consumer laws to promote competition in free market economy and protect interest of the consumers. “Department of Commerce (DoC) is exploring laws that barricade the government authorities to regularise market price of consumer goods,” said Anil Kumar Thakur, director general at the department. According to him, some amendments are necessary in the company law, market competition law and consumer law to control malpractices in the market. “We need to amend Competition Promotion and Market Protection Act to end syndicate and cartelling that is rampant in the domestic market,” he said, adding that the Market Protection Officer (MPO) appointed under the law should have on-the-spot punishment rights to control syndicate and cartelling.

“If the officer has no such rights, mobilisation of MPOs could not be effective,” Thakur added. Likewise, DoC is also mulling to provide semi-judicial rights to Inspection Officers (IPs) appointed under Consumer Protection Act. “We have suggested the government to give rights to them,” according to him. As per DoC proposal, IPs can fine up to Rs 15,000 on the spot in case of violation of consumer rights. The department is currently monitoring price (wholesale and retail) list of basic consumer goods like rice, pulses, edible oils,sugar, wheat flours, milk, fruits and vegetables and others, though it has failed to enforce the law despite massive monitoring campaign since last two years.

Over 80 per cent of shops of the capital city Kathmandu do not have price list yet. The department experience shows that without strong law and enforcement mechanism consumer rights cannot be protected. “Therefore we are trying to bring strict law to punish errant businessmen,” he said. The department is also drafting new law Price Control Act to provide legal teeth to the government to interfere in market price and discourage hording, cartelling and black marketing. “The law will be applicable in 29 essential consumer goods and will be enforced in difficult conditions only,” Thakur informed.

Major focus of the law will be to check cartelling in prices of foods and grains. Under the Act, the government can confiscate the horded food items and grains and sell in reasonable market price. “It will discourage hording, cartelling and black marketing,” he said.

Source: THT

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