Nepal Chamber of Commerce Urges Government to Reconsider MRP Enforcement, Citing Implementation Challenges

The Nepal Chamber of Commerce (NCC) has organized a significant interaction program with private sector entrepreneurs and businesses in the presence of Damodar Bhandari, the Minister for Industry, Commerce and Supplies. The Chamber raised concerns about the ambiguities in Maximum Retail Price (MRP) implementation and the lack of adequate public awareness, which are adversely affecting consumers and businesses alike.

The program, held at the Chamber building in Jamal, Kathmandu, saw the participation of Minister Bhandari, Chamber officials, and over 150 entrepreneurs and businesspersons from the private sector.

NCC Calls for Consensus-Based MRP Implementation

During the event, Kamlesh Kumar Agarwal, President of the Nepal Chamber of Commerce, emphasized to Minister Bhandari that MRP should only be implemented based on comprehensive discussions and consensus among all relevant stakeholders. President Agarwal highlighted that the Department of Commerce, Supplies, and Consumer Protection has recently initiated strict market monitoring, imposing hefty fines on products found without MRP labels.

He clarified that implementing MRP labeling for imported goods would be particularly challenging, given Nepal’s significant reliance on imports for most consumer products. Agarwal also stressed the need to recognize transactional value for customs purposes, in line with World Trade Organization (WTO) principles, especially as a reference price system is already in place at customs.

President Agarwal expressed concern that the Department’s aggressive monitoring and excessive fines, particularly during the current fragile business and industrial environment, could further deteriorate the business climate. He stated, “It is the consumer’s right to receive quality goods and services. To ensure consumers are not deprived of this right and to enhance awareness about market dynamics and goods, public awareness campaigns and sensitization efforts must be prioritized.”

Businesses Decry Unnecessary Harassment from MRP Monitoring

Many private sector officials present at the program complained that entrepreneurs are facing undue hardship due to the monitoring carried out in the name of MRP and labeling. They asserted that a majority of businesspersons and entrepreneurs are not even aware of the MRP regulations.

Minister Bhandari Assures Further Discussion on MRP Enforcement

In response to the concerns raised during the Chamber’s discussion, Minister Bhandari assured that the MRP implementation process would be advanced as needed only after further consultations with concerned stakeholders. Dr. Ram Prasad Ghimire, Secretary at the Ministry of Industry, Commerce and Supplies, also participated in the discussion.