Private sector opposes mandatory MRP provision

The Kathmandu Post highlights significant opposition from Nepal's private sector to a new government mandate requiring Maximum Retail Price (MRP) labeling on all goods. This abrupt policy, implemented without adequate consultation, has already begun to disrupt customs clearance at key entry points like Birgunj, raising concerns about supply chain stability and government revenue.

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The private sector has expressed concerns over the government’s mandatory provision requiring the maximum retail price (MRP) to be mentioned on all imported and domestically produced goods.

Traders and business associations, such as the Birgunj Chamber of Commerce and Industry, argue that the provision is unworkable in Nepal's economic context. They point to the volatile nature of international prices and foreign exchange rates, making it difficult to set a fixed MRP. Furthermore, they contend that imposing this on all goods, unlike in neighboring India where it's limited to specific categories, is impractical and could discourage foreign suppliers.

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As a result, customs clearance of imported goods has been affected since Tuesday at Birgunj Customs Office and other entry points across the country.

The private sector fears the policy could lead to increased disputes between importers and customs officials, potentially inflate prices for consumers, and even push trade into informal channels. They are calling for the government to halt the implementation, conduct thorough studies, and engage in meaningful dialogue with stakeholders to find a more practical solution. The current approach, they argue, is not conducive to a healthy business environment and could negatively impact the nation's supply system.

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Traders say this could disrupt supply chains and impact revenue collection.