The government has made some right noises when it comes to busting the various cartels and syndicates that undermine free competition, limit consumer choices and artificially inflate prices. It announced the cancellation of permits of all transport syndicates. It then cracked down on the middlemen who were artificially increasing the prices of fruits and vegetables. This was followed by the cancellation of the licenses of the companies that were extorting Malaysia-bound workers. While all these initiatives are laudable, it is also important to keep in mind their end result.

 

“The government is advertising that the syndicates in different sectors have been broken. But the reality is that most consumers are yet to see any tangible change in their daily lives,” says Jyoti Baniya, a consumer rights activist. The syndicates in transport have been removed but there are not enough new bus companies to meet the high demand. And why just stop with the cancellation of the license of the companies sending Nepali workers to Malaysia? Will the government now do the same in the case of other labor destinations?

 

The crackdown on the middlemen in the fruits and vegetables markets has also not resulted in cheaper apples and onions for the end consumers. This raises two questions. One is of intent. What does the government hope to achieve? Is it really working in public interest or does it want to reward those close to it on the pretext of cartel-busting? The second is of end result. Are its actions having a tangible impact on people’s daily lives? The government needs to be honest on both.