Government fails to initiate action against syndicates
BIRGUNJ, DEC 18 -
The government has failed to take action against transport syndicates despite repeated pledges to crackdown on such illegal practices.
Traders had submitted a memorandum to the local administration six days ago demanding that such illegal practices in the transportation system be stopped. The administration had promised to take action against the wrongdoers, but nothing has been done so far.
The syndicate in transport has forced traders to pay higher freight costs. However, even after hefty rise in freight costs, shortage of transport vehicles still persists. Due to the enforcement of syndicate system, traders say they have to pay up to Rs 25,000 fare per 10 tonnes—much higher than the government-set Rs 18,000.
Since November 30, transporter unions—Tarai Transporters Association, Simara and Narayani Transporters’ Association, Hetauda—have unilaterally enforced syndicate in cargo vehicles operating on the Birgunj -Kathmandu route. Under the new system, a truck can only do four trips a month. Earlier, trucks were allowed to make at least seven trips.
Birgunj Chamber of Commerce and Industry (BCCI) said transporters are creating artificial shortage of trucks to increase the fares further. BCCI President Ashok Vaidya said the transporters’ move has forced them to reduce manufacturing of goods like cement, rods, pipe and even the edible items. “Traders are also facing storage problems,” said Vaidya.
The syndicate has also affected the government’s revenue collection. Vaidya said the government is losing Rs 4 million revenue daily. The downfall in production has mainly affected the collection of VAT and excise duty.
The transporters, however, have different things to say. Shankar Bista, secretary of Tarai Transporters’ Association, said most of the trucks had been mobilised to transport sugarcane amid the peak harvest season. “As the trucks operators are offered high fares, it is normal they give priority to sugarcane,” he said.
Birgunj -Pathlaiya Industrial Corridor, one of the main industrial zones, requires over 1,000 trucks daily to transport goods to different parts of the country from the custom point. In the last two weeks since the syndicate was enforced, only 650 trucks shipped goods through the customs point.
The traders said the shortage of trucks has also increased price of essential goods including food items and construction materials. According to a trader, the transport fares on Biratnagar-Kathmandu and Birgunj -Kathmandu are at the same level. The Kathmandu-Biratnagar route is 350km longer than the Birgunj -Kathmandu section.
Vaidya said most of the traders have passed on the increased fares the customers by raising prices of finished goods. “Enforcing syndicate also violates the norm of competitive market,” he said.
Source: The Kathmandu Post
