The ruling Communist Party of Nepal has repeatedly expressed its commitment to battling car­tels and syndicates in every sector. It has done a few things too. The registration of various transport cartels has been cancelled. The syn­dicate involved in exploiting Malay­sia-bound Nepali laborers has been busted. The government also seems to be getting tough on the syndicates on daily edibles. And yet most peo­ple seem unsatisfied, or unsure of the government intent. “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 senior advocate and President of the Forum for Protection of Consumer Rights Nepal.

 

The battle against the syndi­cates began in April 2018 with the issuance of the Transport Manage­ment Directive that threatened to break transport monopolies. The government decision was met with massive protests of transport entrepreneurs amassed under the umbrella organization of the Federa­tion of Nepalese National Transport Entrepreneurs Association.

 

Unlike what happened in former times, the government of the day did not budge to this pressure tactic. After making various arrests and cancelling the route permits of the protesting companies, the trans­port federation backed off and new bus companies were added on the Araniko Highway, which had been at the heart of the power struggle between the government and the transport syndicates.

 

Subsequently, Mayur Yatyat, Sajha Yatayat, City Metro, Mahanagar Yatayat, Shiva Darshan, Madhya Upatyaka and Annapurna received ‘direct permits’ from the govern­ment and have since started their services. “But these buses are not enough to meet the high demand,” says Baniya. The consumer rights activist believes that many more transport companies need to be introduced to completely do away with the syndicates in the sector.

 

Moreover, the government intent to take on transport syndicates has been a suspect following some questionable transfers of the bureaucrats involved in recent syn­dicate-busting activities.

 

Manpower mess

 

The government recently can­celled the registration of a few com­panies that had created a syndicate for Malaysia-bound workers.

 

Since 2013, four different compa­nies—the One Stop Solution (OSC), the Malaysia VLN Nepal Pvt. Ltd, the GSG Services Nepal, and MiGram—had formed a syndicate that together earned Rs 4.6 billion on the pretext of providing medical checkups, visa stamping, security clearance, pass­port collection and online registra­tion services to the Malaysia-bound laborers. On assuming office, the Minister of Labor, Employment and Social Security Gokarna Bista swiftly revoked their license and had those who had restricted free competition for bio-metric health checkups of migrant workers arrested.

 

Manpower company operators, however, believe the government acted in haste. “The companies involved were established in coor­dination with the Malaysian govern­ment. Shutting them down without proper homework could affect thou­sands of Nepali workers set to leave for Malaysia,” says one such opera­tor on the condition of anonymity.

 

“The government always attacks us without justification. We are a remittance-based economy and without recruitment agencies like us handling the demand and supply of workers, how does the government expect to increase remittance?” he asks. This manpower operator says he alone spent over two months and around Rs 5 million to create demands for Nepali workers in Malaysian compa­nies, to no avail.

 

Having set a strong precedent in the case of Malaysia, Nepal could be forced to get tough on labor export to other Gulf countries as well. Emulating Malaysia, Qatar, another big destination for Nepali migrant workers, is preparing to install a ‘one-door mechanism’ of its own to hire workers from Nepal and seven other countries. Qatar plans to open a private recruitment company that will take care of all migrant labor-related issues, from recruitment to departure. The extra costs will undoubtedly be passed on to the laborers applying to go to Qatar. Government officials declined to comment when APEX wanted to know if the government would also look to get tough on the prospective suppliers of manpower to Qatar.

 

Fruits of labor

 

Cartels are also responsible for artificially inflating the prices of daily commodities. Take the case of fruits and vegetables. The two main wholesale fruits and vegeta­bles markets in Kathmandu—Kali­mati and Balaju—have drawn the government’s attention following complains of irregular and unscien­tific pricing there.

 

Minister for Agriculture Chakra Pani Khanal made a surprise inspec­tion of the Kalimati market this week and identified various cartels. “We have shortlisted 434 businessmen who are involved in creating a syn­dicate in the vegetable market,” says Bomlal Giri, media coordinator for minister Khanal. “We have issued them stern warnings and have asked them to furnish clarifications.”

 

One example of the syndicates operating in Kalimati wholesale market is the one related to rent of the stalls there. The ministry found that a few businessmen have been occupying the same stalls for over 15 years. These businessmen pay around Rs 8,000-10,000 in rent to the market operator while they sublet the same space for up to Rs 200,000. This naturally translates into inflated end prices for the final consumers, much to their chagrin.

 

“I have been in the business of selling vegetables for a year now but I still have not been able to find the logic behind the pricing,” says Avilash Pantha, a shopkeeper who runs a vegetable store in Ranibari, Kathmandu. “The prices are raised in the wholesale markets but it is us, retail shopkeepers, who have to face the wrath of the customers.”

 

Minister Khanal’s visit to the Kali­mati market was followed by pro­tests by local businessmen, along with threats of imminent strikes. “But the ministry is ready to take them all on,” said a source at the agriculture ministry. In fact, with the help of the home ministry, the ministry of agriculture is planning to remove middlemen in vegetable markets across the country.

 

All in all, the all-powerful left gov­ernment has made some right nois­es and taken some bold decisions. But again, unless these cartel- and syndicate-busting measures trans­late into lower costs and ease of access for end consumers, they will be meaningless. That, in the end, will be the real test of the popularity of Oli government.