Customers are complaining that oil industries are fleecing them by increasing maximum retail price. But market regulators say they do not have any information about the anomaly.
When Republica asked Shambhu Koirala, director general of Department of Commerce and Supply Management, whether it is a case of black-marketing, he simply said, “I don't know exactly what it is.”
All 16 edible oil industries in the country increased price soon after India imposed undeclared economic blockade. Two and half months have already elapsed. But DoCSM has not bothered to analyze market price of edible oil.
Price of sunflower oil has doubled compared to the price before the blockade that started in the third week of September.
DoCSM invited officials of Nepal Vegetable Ghee and Oil Manufacturers Association (NVGOMA) on Monday to discuss why price of edible oil price has gone up by such a huge margin. At the meeting, officials of the association attributed price hike to different factors including detention charge levied on containers stuck en route to Birgunj. They also said they cannot furnish pricing details due to unseen cost involved in procurement of raw materials.
They said fine paid to shipping companies in Kolkata, increased transportation cost, and donation paid to agitating parties in Tarai are the reasons behind rise in price of edible oil.
Koirala admitted they cannot enforce laws in this period of crisis as industries are running in low capacity as well as paying additional charges in different headings.
Two days after the discussion, oil industries reduced the price of mustard oil to Rs 290 per liter.
Talking to Republica, Manish Agrawal, vice chairman of the association, claimed that they were compelled to raise price of edible oil. “It's a compulsion for us as we have to bear various additional costs to keep our factory running,” he added.
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