Price-mark provision likely to be expanded next fiscal

KATHMANDU, JUL 01 - More imported merchandise may be required to be marked with the maximum retail price (MRP) from the next fiscal year 2015-16. Currently, traders are required to have price-mark labels on 12 products.

Jyoti Baniya, a consumer rights activist, said that there had been an understanding between the Department of Customs, representatives of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Nepal Chamber of Commerce and consumer rights activists to price-mark 12 more products.

“We reached an understanding at Monday’s meeting,” said Baniya. Among the products that will come under the MRP rule are drugs, medical devices, cosmetics, mobiles and packed food, among others, according to Baniya.

Currently, televisions, washing machines, microwave ovens, energy drinks, marble, granite tiles, cooking ranges, chimneys, digital cameras, video cameras and automobiles are required to have price-mark labels.  

Last week, the Department of Commerce and Supply Management (DoCSM) decided to ask manufacturers and importers of packaged essential goods to send them to market only after marking the MRP on them.

The department said that it would give traders and manufacturers a three-month deadline to comply with the instruction. The directive also covers life saving drugs and surgical devices.

According to the department, many of these products, especially surgical devices imported from India, Malaysia, the US and Europe, do not state the MRP.

The price-mark provision does not apply to perishable goods such as vegetables and fruits whose prices vary on a daily basis and are distributed in bulk, according to the DoCSM.  

However, the Department of Customs said that no concrete decision on expanding  the list of products required to have the price-mark had been taken so far.

“We have been conducting an effectiveness analysis of the MRPs fixed on certain products so far,” said Sishir Dhungana, director general of DoC. “The report is expected come before the budget presentation for the next fiscal year, and we will then take the necessary decision on expanding the list.”

He said that the weaknesses in the MRP system would be evaluated and the necessary steps taken to remove them while adding other products to the list.

The DoCSM aims to intensify market inspection to make sure the MRPs are consistent with the actual production costs, overhead costs and profit margin.