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E C O N O M Y  

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 Kathmandu Thursday January 03, 2002 Paush 19,  2058.

Govt to amend Food Act, Regulations
DFTQC takes action against a dozen firms

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KATHMANDU, Jan 2 The government is planning to make amendments to the existing Food Act, 2023 (1966) and Food Regulations 2027 (1970) with a view to make them more appropriate to the changing context so that consumers interest could be better safeguarded.

Dr Tika Bahadur Karki, Director General at the Department of Food Technology and Quality Control (DFTQC) said that the government is amending the existing Food Act and Regulations in order to make it more relevant.

"We are drafting the Act and it may take some time to finally make amendments to it as we are planning to put it at a public consultation before giving it a final touch", said Dr Karki, speaking at a press meet organized by the Department here today.

There are various issues in which the department’s efforts alone would not be sufficient to control the quality of food and technology, due mainly to lack of clear laws and coordination among the related departments.

The department can inspect and lab test the quality of food stuffs and if found not following the rules it can file a case depending upon the degree of violation of the rules. Many such cases are forwarded to the office of the Chief District Officer (CDO) for settlement. And in some cases, it takes a long time to settle the case, he added.

Of the total cases filed only about one per cent is settled annually. In most cases, the defendants do not appear on an appointed day, unnecessarily prolonging the case. Constraints of manpower is another factor which has made it difficult to carry out desired activities as there are just 20 inspectors at the Department to oversee the entire kingdom, he added.

During the press meet Director General Karki also said that despite those problems the Department has been carrying out its regular activity of quality control. According to a recent inspection made by the Department, 11 biscuit companies are found not following the rules of labeling.

Major biscuit and bread companies like Quality Biscuit Udyog, Biratnagar, Krishna Biscuit Company Pvt Ltd, Kamalpokhari, Intep Food Industries Pvt Ltd, Hetauda, Jaiswal Biscuit Udyog, Biratnagar, Lucky Food Products, Siddarthanagar and Mayur Biscuit and Food Industries, Biratnagar are found not following the labeling rules.

Similarly, Kumar Food Pvt Ltd, Bhaktapur, Chahana Pauroti Udyog, Bhaktapur, Krishna Pauroti Udyog, Kamalpokhari, Baba Biscuit Udyog, Biratnagar and Nepal Biscuit Company, Balaju are also found not following the rules, states a press release issued on
the occasion.

He also informed the press that sample tests carried out up to December end 2001 show that mustard oil, ghee and instant noodles were found below standard. We have initiated process to take action against the wrong doers.

We are going to carry out our activities regularly like in the past and are also going to brief the press regularly in the days ahead, so that it would help to discourage such malpractice and safeguard consumers’ rights and interests, he further said.


Syndicates thrive despite govt ban

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KATHMANDU, Jan 2 Even after weeks of the government decision to ban decades old syndicate system in transportation, the uncooperative attitude of the government offices to materialize the decision has created a huge hurdle in ensuring healthy market competition.

Despite the complete ban of transport syndicate system, department, and offices of Transport Management has been denying to grant permission to new bus companies to start the services in some of the existing routes.

The national meeting of the Consumer Protection Council held recently had decided to revoke the syndicate system in transportation. The last cabinet meeting also decided to take necessary actions soon to implement the decision effectively.

After the cabinet decision, the various bus companies rushed to the Department of Transport Management to get the operating permission. Agni Transportation, one of the leading bus companies, even acquired permission to operate its service in the Kathmandu
Pokhara route.

However, after issuing permission just to a company, transport office stop issuing such permission. Presently, Makalu and Himal bus companies are waiting for route permission. "We asked for Bhairahawa and Nepalgunj routes, but the office refused," says Nirmal Rayamajhi, General Manager of the Agni Transportation Company.

However, officers of the transportation department turn down such allegation. "We have not stopped issuing road permission and any company can get such licence on the ground of necessity," they stressed.

Poshan Nath Nepal, Secretary of the Ministry of Labour and Transport Management also said that the ministry has no policy of stopping the issuance of road permission. "Agni Transportation has already acquired permission, it is a positive development and further permission will be granted to other companies as per the necessity," he added.

Durba, Kumar Sharma, spokesman of the Ministry informed that he has no information that issuance of the permission has been stopped. "We haven’t issued any direction in this regard," he said.

Meanwhile, the Makalu transportation, which has acquired temporary permission on the Kathmandu-Pokhara route, has also suspended its service due to the negative attitude of the local administration. "We had to suspend our bus service to Pokhara after the local administration pressured to stop the services," says Tulsiman Singh, Managing Director of
the company.

He also said that the company even had dispute with the employees of the office. "They said that they have received verbal orders form the centre in this regard," informed Singh.

Prithivi Highway Bus Operators’ Committee, which has been enjoying monopoly in the route, has started strong protest against the government decision. The committee had even created disturbance on the highway blocking a bus of Agni Transportation heading towards Kathmandu. But the bus was freed after the intervention of local police administration.

Nepal Transportation Entrepreneurs Association and Araniko Highway Bus Operators’ Committee are among the monopolist that has been strongly protesting the decision to scarp syndicate system.

Niranjan Baral, Joint Secretary at the Ministry informed that all the procedures related with scrapping the syndicate system has been completed. "After the circulation of government decision to the concerned departments and offices, the current problems will disappear," he said.


Bangladeshi fair kicks off

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KATHMANDU, Jan 2 Purna Bahadur Khadka, Minister of Industry, Commerce and Supplies and Mursad Khan, Minister of Foreign Affairs of Bangladesh, jointly inaugurated the 5-day Bangladesh Single Trade Exhibition here today.

The trade exhibition jointly organised by the Embassy of Bangladesh and Export Promotion Bureau of the government of Bangladesh is being participated by over many internationally reputed Bangladeshi trading forms and industries. The exhibition has a wide range of varieties of consumer goods ranging from toiletries, pharmaceuticals, textile products, garment products, jute products and ceramics and expected to attract sizeable number of Nepali consumers.

Addressing the inaugural session, Minister Khadka urged both the private sector and the government agencies to work more closely to expand trade relation between Nepal and Bangladesh.

He further said that carpet and garment contributes for more than 50 per cent of the total foreign trade earnings and underlined the need for a common effort from the Nepal and Bangladesh to safeguard the garment industry, which has been engulfed in various problems.

He also stressed on the full utilisation of the Kakarvitta–Fulbari–Banglabandh motor way to boost trade relation between the two countries.

Speaking on the same occasion, Khan, Foreign Minister of the Bangladesh said that private sector should play the lead role on the expanding mutual trade relation. "Government can only provide necessary infrastructure and conducive environment to the private sector," he said.

Stressing on the need of people to people contact for the promotion of the trade and industry he said that businessmen of both the countries should look into promoting joint investment project to uplift the living standard of the people.

Humayun Kabir, Charge d Affairs of the Embassy of the Bangladesh expressed the hope that the trade exhibition would be fruitful in expanding mutual trade relation and added that the government of Bangladesh has been making especial emphasis in strengthening economic diplomacy relation with other countries.

Rabi Bhakta Shrestha, President of Federation of Nepalese Chambers of Commerce and Industry stressed on the need of full utilization of the Kakarvitta-Fulbari-Banglabandh motor way and added that Nepali businessmen are interested to extend the road link to the Mangla port.


Presentation of SCCI

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KATHMANDU, Jan 2 On the occassion of 11th SAARC Summit, the SAARC Chamber of Commerce and Industry (SCCI) made a presentation today at the meeting of the Council of Ministers on "Government-Industry Partmership."

According to a press release received here today, Padma Jyoti, incoming President of SAARC CCI made the presentation on "Partnership Affirmation of SAARC Chamber of Commerce and Industry" on behalf of all seven Member Federation of SCCI.

The partnership affirmation of SCCI affirms support and commitment to the governments on measures taken for Poverty alleviation and economic growth, states the release


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