Diesel consumption rise indicates economic revival

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KATHMANDU, Jan 30 : As the latest sign of slow revival of the economy after hitting the bottom line, the total consumption of diesel, during the first half of the current fiscal year, has registered a positive growth rate against a double-digit shrinkage witnessed during the same period last year.

According to data made available by Nepal Oil Corporation (NOC), the total sale of diesel, one of the major industrial inputs and a quick barometer to gauge the status of industrial activities, surged by 7.15 per cent during the period as compared to the same period last year. The overall demand of diesel during the first half remained at 146,570 kilolitres against 136,089 kilolitres of the corresponding period last year.

The main cause of the increment in the demand of diesel consumption is the slow revival of the economic activities of the country in recent months. Since, over 80 per cent of the total national demand of diesel is solely consumed by transportation, which ultimately depends on the domestic economic and industrial activities, any increment in its demand is generally taken as a sign of start of economic recovery.

After a series of tumbles, reports related with the improvement in the business transaction, particularly in the transportation sector, have started coming in. Slightly improved industrial activities particularly due to the revival in the real estate business is one of the prime factors for improved demand of vehicles ferrying goods.

The situation is more or less similar in the case of the passenger bus business. The number of passengers travelling in the short-route buses as well as the long-route ones are reported to have increased in recent months.

Despite some indications of industrial revival, the demand of aviation fuel continued to tumble for yet another period. According to the available figure, the overall demand of the fuel slipped by 3.26 per cent to remain at 25,194 kilolitres against the similar demand of 26,043 kilolitres consumed during the same period last year. The dwindle in the demand of aviation fuel clearly indicates that tourism sector, which has been hard hit by the continuously sliding numbers of tourists, is yet to feel the much-awaited revival.

Anchored by the healthy growth in the demand of diesel and kerosene, the total sales of petroleum products, excluding the liquefied petroleum gas (LPG), during the period, recorded a nominal rise of 0.5 per cent to touch 387,631 kilolitres from 385,832 kilolitres of last year.

During the period, the total sale of kerosene, the prime cooking fuel for majority of the middle class households, went down by 3.24 per cent to touch 174,124 kilolitres down from last year’s 180,031 kilolitres. The continuing shifts of rural households towards the use of LPG from kerosene, combined with some control in illegal outflows towards India are some of the influential causes for such a decline.

Similarly, the sale of petrol, during the period increased by 7.3 per cent to 33,329 kilolitres from 31,052 kilolitres consumed during the like period last year. Continued rapid increase in the number of private cars and motorbikes in the urban areas is the main cause for such an increment.

Similarly, a remarkable surge in the consumption of LPG was also witnessed during the period. The sale of LPG went up by over 13 per cent to touch 26,271 tons from 23,165 tons last year. The growing use of LPG by the upper middle class along with the rising number of gas-powered vehicles is the factor behind such increase.

‘Make prices of local drugs competitive’

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KATHMANDU, Jan 30 : Indicating the relatively higher prices of quality Nepali drugs, a senior government official at a programme today urged the Nepali pharmaceuticals to fulfil their social-responsibility by offering their products at affordable prices to general public.

Inaugurating the programme organised to mark the twelfth anniversary of Deurali-Janata Pharmaceuticals Pvt Ltd, Bhupendra Bahadur Thapa, Director General of Department of Drugs Administration (DDA) pointed out the need for lowering the prices of the local drugs compared to the foreign medicines.

"Our companies are losing the battle with foreign companies. Time has come for offering local quality medicines tagged with affordable pricing," Thapa remarked.

According to an independent estimate, Nepali drugs in the local market is largely dominated by the Indian medicines. Experts claim that Nepali drugs have only twenty seven per cent share in the total drugs market of the country.

Hari Bhakta Sharma, Executive Director of the Deurali-Janata Pharmaceuticals Pvt Ltd, said that under-utilisation of Nepali drug companies is the main reason behind the low market share of the Nepali drugs. "While the Indian drug companies have easy access to the Nepali market, our produce has to go through a lengthy administrative process before penetrating the Indian market," remarked Sharma.

Referring to the massive competition that the Nepali pharmaceuticals with Indian drugs companies, Sharma demanded support to local pharmaceuticals from the government.

"When our drug industries are far behind in competition with foreign companies, the government should support us to enhance our competitiveness," he added.

Meanwhile, Sharma also said that his company is introducing newer technologies soon, with the aim to increase its efficiency and production capacity. During the programme, several employees of the company were felicitated with letter of appreciation for their better performance.

HFC staff demand 6 months’ pays before resuming operation

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KATHMANDU, Jan 30 : Spilling ice over the board’s intention of operating the closed Himal Cement Factory (HCF) by clearing a few months’ liabilities of its employees, workers of the factory have refused cooperating the board, if it did not pay six months’ salaries immediately.

This has been stated in a 12-point proposal that the employees’ Main Task Force (MTF) submitted to the board a couple of days ago. The proposal was submitted to the board as per its demand.

The employees have also asked the board to issue an authoritative letter for settling their liability for last 14 months when the factory remained closed," said Bala Ram Sharma, member of the Main Task Force. Even the Supreme Court has given its decision in line with the case filed by the Main Task Force against the government.

"The government’s commitment in writing has been sought to bind it on a time frame for settling all the dues," he said. The factory, which remained closed for over a year, owes more than Rs 70 million to employees in their salaries, insurance and other benefits of last 14 months.

Referring to the downsizing of the staff, the workers have asked the board to clear the pending applications of staff who sought voluntary retirement after the government closed the factory. While the management then accepted the retirement application of 139 employees, it has yet to accept the applications of 96 staff. "This matter, however, should be dealt with in a judicious way," said Sharma.

He further said that the employees were ready to accept any decision on lay off that the management would take following the specified procedures. The employees have further asked the board to introduce stringent administrative policy and transparent pricing mechanism to enhance productivity and competitiveness of the factory.

The Main Task Force has also asked the board to renew the factory at various authorities including revenue office. It has also demanded the government to continue to insure the employees and mandatory condition for re-operating the factory.

Interestingly, the workers have also proposed the board to scrap the overtime system. "Inclusion of such a condition is to deal with the problem of nepotism and financial irregularities created in the name of overtime," said another member of the NTF.

Likewise, the board has been asked to formulate a clear-cut policy and strategies on securing raw materials and appointing efficient administrators. "The proposal that the employees have submitted would be discussed in the board and shareholders," said a government official preferring to be unnamed.

He also informed that the board meeting would be held once the general manager (GM) is appointed for the factory. The position of GM is vacant in the factory currently as the government-appointed GM, Mohan Man Gurung, refused to take up the charge. Gurung, former GM of the factory, was appointed on workers’ recommendation.

Representatives of the MTF said that the force has requested the government to appoint a new GM to expedite the process of re-operation of the factory. "Concerned officials have committed to do so by next few days," they said.

The board had sought proposals from the workers and shareholders as to how the factory would be operated following the demand of the Ministry of Finance (MoF). Such a demand was placed by the MoF in a reply to Ministry of Industry, Commerce and Supplies (MoICS) on its demand of releasing Rs 165.1 million for settling the factory’s liabilities and restarting it.

"The Ministry of Finance in its letter to the Ministry of Industry, Commerce and Supplies has also sought explanation for not re-appealing the case at the Supreme Court," said the source. However, the Ministry of Industry, Commerce and Supplies has not replied the letter.

Business community hopeful of crisis resolution

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KATHMANDU, Jan 30 : The recent political development which has paved way for peaceful solution of the seven-year old Maoist insurgency has received warm response from the business community, in anticipation of a dialogue ensuring peace and order in the country.

The need of the hour is to ensure conducive environment to investment, which is possible only when peace and security is improved, they say adding that as both the sides are serious this time, the peace talks would bring some positive results.

Ending-up the 14-month long dialogue deadlock between the government and the Maoists, both had announced to hold peace talks soon and declared cease-fire on Wednesday to solve the ongoing national crisis.

"The latest announcement is a positive step, not just for solving political crisis, but also to correct the down-trodden business environment inside the country," says Binod Bahadur Shrestha, Acting President of the Federation of Nepalese Chambers of Commerce and Industry.

Shrestha adds, the dialogue has to be initiated seriously to make it a success. "The dialogue committee should be well aware of the issues that can distort the talks and should therefore act wisely." The private sector is ready to provide necessary supports to make the peace-dialogue a success," he says.

The Maoists after breaking the four-month long cease-fire, 14 months back, had launched a series of attacks against the security forces, targeting both the army and the police. Following the Maoist attacks in Dang on November 2001, the government imposed state of emergency for more than nine months.

"The dialogues should not end before reaching the solution," says Rajesh Kaji Shrestha, President of Nepal Chamber of Commerce. All concerned including the government, private sector and the general public have to co-operate the peace negotiators and help in resolving the crisis in a selfless manner.

The crisis-hit economy can be bailed out should the political parties support the negotiators, he says adding, "The economy would suffer a lot, if we can not restore peace in the country, through dialogues."

The ongoing Maoists problem has cost a lot to the country, not only politically, but even economically. Tourism industry, one of the major foreign currency earners, that provides employment for a considerable number of people, has been badly affected.

Government statistics say, the total number of by-air tourist arrival dipped by 28 per cent during last year, compared to the arrivals of 2001 – the worst year for Nepali tourism industry. The tourism entrepreneurs say the announcement of cease-fire has brought some relief to the ailing tourism industry.

"No doubt, it is good news for this sick industry," says Yogendra Shakya, a tourism entrepreneur. The message would help attracting more people to this Himalayan Kingdom, he adds. Expressing hope that the peace talks would solve the crisis, Shakya points out the need to strengthen private sector to create more employment opportunities in the country.

Dozens of hotels and restaurants, a significant number of fast moving consumer goods producing factories, among others have closed their business during the past years, due mainly to the economic slowdown. Even the airlines, garments, and several other industries have suffered by the insurgency.

Kiran Shaakha, president of Garment Association Nepal (GAN) points out the need to initiate peace talks and measures to revive the economy parallely. "While restoring peace inside the country is a must, economic revival is also equally important," he says.

Consumers cheated due to poor monitoring

By Madhav Aryal

PALPA, Jan 30 : If consumer rights can be infringed through a number of means even in the capital city of Kathmandu, where monitoring authorities are active, then certainly the problem is worse in the far-flung districts where such regulatory authorities are hardly present. And Palpa is no exception.

Violation of consumers’ rights in Palpa district, among others, especially those who reside in the rural areas and outside the periphery of the district headquarters of Tansen, is not an uncommon phenomena. Such transgression continues even years after the government announced measures to curb it.

More than five years have passed since the government announced then long-awaited Consumer Protection Act and Consumer Protection Regulation. The Act and Regulation contains provisions by which consumers’ rights are supposed to be preserved. But the implementation of law has been dismal.

Consumers complain that they are victimised especially due to the use of non-standard weights. Such a situation arises, say consumers, due to the absence of regulatory authorities and monitoring of weights used by retailers, who are actually required to use weights that are sealed and approved by Nepal Bureau of Standards and Metrology (NBSM).

"Traders and retailers make use of short-weight weights and stones to measure the mass of most grocery items, among others, that we purchase. We know that we are being cheated, but we can do nothing," lament consumers of not just the rural areas, but even those from the urban ones. "They (the government) should stop it," says Maya Dhital, a housewife.

Consumers complain that regulatory authorities are hardly present outside the district headquarters. "This is the reason why the retailers resort to unethical ways to cheat consumers." Retailers in overwhelming numbers either use the non-standard weights brought in from India or stones to measure the goods they sell.

Consumers are especially cheated in the local markets lying outside the district headquarters. Though officials from the Butwal branch of the NBSM visited Tansen some few months back, they did not carry out monitoring in the adjoining markets citing the fragile security condition.

But interestingly, while rights of ‘core’ consumers may be the focus, even retailers and small trader complain of themselves being hoodwinked. Retailers, especially those who run their businesses in the rural areas, complain that they have been duped many times.

One such retailer is Basu Aryal, a trader of Khaliban. While he dismisses allegations that he is indulged in such malpractice of cheating consumers, he said that he himself has been cheated a number of times by traders of the urban areas. "There is good difference in weights of purchases I make."

"I have found out a number of times that I pay more price for less goods. For example, I have found out repeatedly that I get 4-5 kilograms less in a sack of rice," he says. "There is no way that I can check that out when I buy goods from the market. And it is too late to make any claims by the time I find out."

Aryal even says that the practice of bundling goods by traders should be stopped. "Traders pack onions, potatoes, rice, pulses and vegetables, among other necessities, in various sizes and sell them without measuring," he says. "If we measure them in front of the trader, the reading seems good, only to realise later that the weights they used were not of standard."

Locals opine that prevalence of such practice can be curbed if the local administration and the local chamber of commerce and industry come together. "However, the question is: Who will undertake such an initiation? After all, it is not the responsibility of either the local administration or a private sector organisation to regulate the use of weights," a local said preferring to remain unnamed.

However, President of Palpa Chamber of Commerce and Industry Hari Rayamajhi says that such a situation continues due mainly to lack of awareness among consumers on their rights. "If authorities initiate a monitoring mechanism, surely our organisation will support it," he says.