According to traders, fare to transport goods to Kathmandu has increased by Rs 70 per quintal from existing Rs 220 per quintal after the syndicate system was introduced in the region on Dec 9. [break]
Similarly, the cost of transporting goods from Dhangadhi to Achham has increased by Rs 130 to Rs 370 per quintal.
Hari Shankar Thakur, executive member of Kailali Chamber of Commerce and Industry (KCCI), said prices of refined flour and coarse rice in Dhangadhi have soared by Rs 200 and Rs 100 per quintal to Rs 3,050 and Rs 2,500 respectively. Similarly, the price of a carton (10 liters) of edible oil has increased by Rs 100 to Rs 1,150 per kg over the period.
“Prices of essential commodities have gone up by at least Rs 2-3 per kg after the syndicate system was reinforced,” Thakur, who is also monitoring the market price of commodities on behalf of KCCI, said.
After the syndicate system was reinforced, local flour mills, oil mills and rice mills have lost their competitive strength to retain market in the capital - the largest market for their products. Transport fare to ferry goods from Kathmandu to the far-western region has also doubled to Rs 40,000, as truckers either have to wait for their turn to get return trip or return without consignment.
Local farmers are also not getting good price for their products, as industries are industries are not in a position to operate to their full capacity due to loss of major markets. Similarly, locals in the far-western region are compelled to pay higher prices for commodities due to exorbitant fare set by truckers.
“Around 25 truckers associated with Seti-Mahakali Truck Operators´ Association has been controlling the transportation of goods in the far-western region, limiting the number of transporters and mobility of goods to and from the major commercial centers of the region,” said Dinesh Bhandari, president of KCCI.
Local industries are no longer in a position to operate due to limitation on mobility of raw materials and finished goods due to strong syndicate, according to the association.
Citing adverse business climate, promoters of more than 150 industries in the region had handed over keys of their industries to Kailali CDO Narayan Prasad Bidari a few days ago.
Bidari said local industries -- mainly agro-based industries -- are severely affected by the syndicate system as delivery of their products to the capital has been affected.
More than 50 agro-based industries, including Bhageswor Agro-industry, Dinesh Agro Industry and RP Modern Industry, have been scaling down their production volume for the last couple of weeks.
Amid mounting pressure from all quarters, the Seti-Mahakali Truck Operators´ had agreed to end the syndicates on Dec 29, 2010. However, they violated the agreement signed in the presence of CDO Bidari and resorted to manhandling drivers and seizing trucks that are found ferrying goods without registering with the syndicate. Furthermore, the syndicate has been discouraging new registration of trucks by imposing high fee of Rs 200,000 and Rs 100 for workers´ welfare fund. Similarly, the syndicate has also been charging Rs 1,000-Rs 1,500 per trip.
Though political parties have been publicly denouncing syndicate system, local leaders of these parties are protecting syndicates due to financial benefits. Local administration, which holds the authority to even cancel registration of trucks, is not in doing anything to discourage system due to political protection.
“Manly some local Maoist leaders, including Young Communist League´s Kailali in-charge, are publicly supporting the syndicate, challenging the rule of law,” a member of KCCI said.
Meanwhile, political leaders have flayed syndicate system in transportation sector practiced in different parts of the country. Speaking at an interaction organized at the Federation of Nepalese Chambers of Commerce and Industry on Tuesday, Maoist leader Lekhraj Bhatta, Nepali Congress leader Ramesh Lekhak and CPN-UML leader Chudamani Chaudhary demanded stern action against persons and organizations involved in enforcing syndicate system.
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