March 7: Consumers have been complaining of artificial shortage of cooking oil in the market. Due to the rise in stockpiling and black marketing of consumable goods, consumers have been hit hard by the artificial shortage of food, especially edible oil.

The ongoing war between Russia and Ukraine has affected the price of food items in Nepal. Consumers complained that there is an artificial shortage of edible oil due to the collusion of traders and industrialists. Rita Basnet, who came to Kalimati in Kathmandu on Sunday to buy food items, said that she had to visit six shops to buy cooking oil. 

"Every shop we go to has no oil," she said.

Pabitra Bajracharya, the immediate past president of the Retailers Trade Association, said that wholesalers and industrialists were responsible for the shortage of edible oil in the market. According to the association, some traders may have been hiding cooking oil by spreading rumors that the Russia-Ukrainian war has led to shortages of food (especially cooking oil). The association estimates that there is enough oil in the market for three months.

On the one hand, consumers are facing problems due to artificial shortages in the market, while on the other hand, the problem is further aggravated by the wholesalers not providing the right invoices to the retailers.

According to the association, wholesalers sell sunflower oil to the retailers at Rs 268 per liter but the maximum retail price is marked just Rs 240  in the packets.. Bajracharya said that the retailers are facing problems in selling oil because the wholesalers do to provide them the accurate bill.

"We have to sell oil at Rs 298 for a profit of 10 percent of Rs 268," he said. "But we have been selling cooking oil for just Rs 275 per litre because the maximum retail price is marked Rs 240." He said that some retailers have stopped selling oil due to fear of action by the Department of Commerce as the maximum retail price is still less than the selling price of oil. He said that this may have led to a shortage in the market. According to the association, the price of each brand of oil has gone up by Rs 400 per carton. Wholesalers, however, defended themselves, saying that there was a shortage of oil in the market and prices had risen.

They claimed that the issue of wrong billing is only an allegation. Devendra Bhakta Shrestha, president of the Food Traders Association, an association of wholesalers, said that the issue of wrong invoices was just a rumor, and they were ready to be punished if it was proved that they had given wrong invoices.

The Department of Commerce, Supplies, and Consumer Protection, a government body working for the benefit of consumers, has said that no complaints have been received despite the scarcity in the market due to rumors. Spokesperson of the Department Hari Pangeni said that it would be easier to monitor and take action if a complaint is lodged with the department about consumer fraud.