1. Progressively drastic reforms are yet to be undertaken in public sector corporations
involved in supply of essential commodities like Nepal Food Corporation, National
Trading Limited, and Nepal Oil Corporation. These public sector undertakings lack
output oriented performance and competitiveness and have also suffered from excessive
political interferences. However the existence of the public sector corporations should not
be ruled out completely as they, in unusual circumstances like cartelling or dire scarcity
of essential commodities can act as a relief cushion to augment supply and check price
escalation in the open market.
2. In the context of the liberalization of the Nepalese economy accelerated after 1990,
private sector’s involvement is not encouraged in supply management of essential goods,
specially in food grains supply to remote food deficit districts by providing them with
transport subsidy as given to NFC.
3. Overall lack of geographical connectivity especially in the 30 remote districts of Nepal is
the main problem in supply management of essential commodities.
4. In spite of the existence of Black-Marketing and Certain Other Social Crimes and
Punishment Act, 1975, unscrupulous hoarding and black marketing are not adequately
monitored and enforced by the concerned government agencies.
5. Although Consumer’s Right Protection Act, 1997 and Consumer’s Right Protection Rule,
1999 provide for consumer awareness programme, annual information mechanism and
communication, the same have not been effectively administered and enforced. Currently
the aforesaid Act and Rules contain diminished rights
Forums/Organizations in playing proactive roles in the areas of consumer's rights and
welfare. There is a need to revisit and amend them.
6. Organized Marketing system is not yet established for essential commodities in Nepal.
specially in the remote areas
7. The exiting wholesale markets, mandis and stalls in Nepal are inadequate and ill equipped
in various potential areas of the country. The municipalities lack due attention for
developing markets for agricultural products.
8. Specialized cooperatives and fair price shops are still not in existence for distribution of
essential commodities at subsidized price in the rural and remote areas.
9. Apart from the land locked situation of the country lack of adequate transportation to link
hill with Tarai is a major problem in the supply of essential commodities. This has
resulted in high cost for the movement of goods.
10. Data Bank of essential commodities does not exist for effective supply management
system. Practice of disseminating information on production, shortage, import, export,
buying and selling price of essential commodities is not prevalent.
11. Though Ration Card System was practiced partially for distributing subsidized Kerosene
a year back, an effective Ration card system has not been introduced specially in the
remote areas to ensure supply of essential commodities
12. Lack of proper storage facilities is another major problems faced by all those involved in
supply of essential commodities.
13. Retailers in rural and remote areas are not registered in District Development Committee
(DDC), Village Development Committee (VDC) or Ward offices of VDCs.
14. The presence of road barriers, which stop free flow, and smooth movement of goods
create unnecessary problem including collection of local taxes repeatedly at various
locations.
15. At times of need and in unusual circumstances, and despite factual evidences of shortage
(both actual and artificial), intervention through government agencies is not done in time
16. Food grains are not procured and supplied to the remote districts on time by Nepal Food Cooperation
involved in supply of essential commodities like Nepal Food Corporation, National
Trading Limited, and Nepal Oil Corporation. These public sector undertakings lack
output oriented performance and competitiveness and have also suffered from excessive
political interferences. However the existence of the public sector corporations should not
be ruled out completely as they, in unusual circumstances like cartelling or dire scarcity
of essential commodities can act as a relief cushion to augment supply and check price
escalation in the open market.
2. In the context of the liberalization of the Nepalese economy accelerated after 1990,
private sector’s involvement is not encouraged in supply management of essential goods,
specially in food grains supply to remote food deficit districts by providing them with
transport subsidy as given to NFC.
3. Overall lack of geographical connectivity especially in the 30 remote districts of Nepal is
the main problem in supply management of essential commodities.
4. In spite of the existence of Black-Marketing and Certain Other Social Crimes and
Punishment Act, 1975, unscrupulous hoarding and black marketing are not adequately
monitored and enforced by the concerned government agencies.
5. Although Consumer’s Right Protection Act, 1997 and Consumer’s Right Protection Rule,
1999 provide for consumer awareness programme, annual information mechanism and
communication, the same have not been effectively administered and enforced. Currently
the aforesaid Act and Rules contain diminished rights
Forums/Organizations in playing proactive roles in the areas of consumer's rights and
welfare. There is a need to revisit and amend them.
6. Organized Marketing system is not yet established for essential commodities in Nepal.
specially in the remote areas
7. The exiting wholesale markets, mandis and stalls in Nepal are inadequate and ill equipped
in various potential areas of the country. The municipalities lack due attention for
developing markets for agricultural products.
8. Specialized cooperatives and fair price shops are still not in existence for distribution of
essential commodities at subsidized price in the rural and remote areas.
9. Apart from the land locked situation of the country lack of adequate transportation to link
hill with Tarai is a major problem in the supply of essential commodities. This has
resulted in high cost for the movement of goods.
10. Data Bank of essential commodities does not exist for effective supply management
system. Practice of disseminating information on production, shortage, import, export,
buying and selling price of essential commodities is not prevalent.
11. Though Ration Card System was practiced partially for distributing subsidized Kerosene
a year back, an effective Ration card system has not been introduced specially in the
remote areas to ensure supply of essential commodities
12. Lack of proper storage facilities is another major problems faced by all those involved in
supply of essential commodities.
13. Retailers in rural and remote areas are not registered in District Development Committee
(DDC), Village Development Committee (VDC) or Ward offices of VDCs.
14. The presence of road barriers, which stop free flow, and smooth movement of goods
create unnecessary problem including collection of local taxes repeatedly at various
locations.
15. At times of need and in unusual circumstances, and despite factual evidences of shortage
(both actual and artificial), intervention through government agencies is not done in time
16. Food grains are not procured and supplied to the remote districts on time by Nepal Food Cooperation
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