Money
Government to open fair price shops to allay fears of shortages and price hikes
The stores will stock groceries and non-food items like cooking gas and induction cookers.Krishana Prasain
The government plans to open a string of fair price shops in a bid to stop black marketing and price gouging for daily essential goods following rush buying due to the Covid-19 outbreak.
The stores will be run by state-owned Food Management and Trading Company and Salt Trading Corporation in the Kathmandu Valley. Officials are yet to decide when, where and how many.
Industry Minister Lekh Raj Bhatta said that the fair price shops would provide daily food items conveniently and at reasonable prices.
The government usually sets up fair price shops before the Dashain, Tihar and Chhath festivals with the aim of providing essential goods at a discount as prices often jump on increased demand.
According to the minister, the fair price shops that are proposed to be opened currently will stock groceries such as salt, sugar, edible oil, ghee, rice, lentils and legumes as well as non-food items like cooking gas and induction cookers.
Kumar Raj Bhandari, director general manager of Salt Trading Corporation, said that they would be meeting with officials of Food Management and Trading Company to decide the opening date and the locations. The shops will be operational within two-three days, he said.
The government decided to operate fair price shops with a view to control prices, prevent cartelling and intervene in the market for the benefit of the general public amid difficult times, he added.
Government fair price shops currently operate round the year at Koteshwor, Kalimati and Satungal in Kathmandu and in Banepa. Bhandari said the government had decided to establish extra shops due to public concerns over the continued availability of essential goods.
Devendra Sunar from Syangja, who lives at Kadaghari, Bhaktapur and works as a human rights activist, said that operating fair price shops, especially during times like these, was a must as people are having a hard time finding essential goods or are having to pay more for them.
"There are chances of hiding goods and creating shortages at the fair price shops too, so a consumer committee needs to be created to make sure that the goods are distributed transparently and equitably," Sunar said.
The Covid-19 outbreak, which has been spreading globally, has prompted people to rush to the market to stockpile essential goods, and opportunist traders are creating artificial scarcities and hiking prices to profit out of the panic, officials said.
Despite government assurances of an adequate supply of essential goods, city dwellers have been complaining of having to stay in line to buy cooking gas and being forced to pay exorbitant prices for groceries.
Consumer rights activists charge that traders have been taking advantage of the government’s lax attitude and inability to maintain a strong presence at times of crisis.
Grocery stores also said that they observed a spike in sales of more than 25 percent within a week with consumers fearing shortages of goods.