Govt preparing to set up fair price shops during festive season

KATHMANDU, AUG 20 -With the festival season around the corner, the government has started preparations to set up temporary fair price shops to sell daily essential goods at subsidised rates.

The Ministry of Commerce and Supplies has sought Rs 32.9 million from the Finance Ministry for the operation of the shops in and outside the Kathmandu valley.

The shops of to be operated by three public enterprises (PEs)—National Trading Ltd (NTL), Salt Trading Corporation (STC), Nepal Food Corporation (NFC)—will sell daily essential goods like rice, sugar, salt and edible oil at discounted rates.

This year, the government plans to set up over 20 fair price shops across the country. The amount sought by the Commerce Ministry will be provided to the PEs for the operation of the shops. Commerce Ministry officials said the fund was demanded based on the subsidy provided by the government entities provided to consumers during last year’s festive season.


Deepak Raj Pandey, joint-spokesperson of the Commerce Ministry, said the percentage of discounts on commodities to be sold and the exact number of the shops to be set up will be determined soon after necessary preparatory work and discussions with agencies concerned. “We are preparing a work plan to intervene in the market by opening fair price shops and carry out market monitoring with focus on the festivals,” he added.

The work plan is being devised by a committee coordinated by Narayan Prasad Bidari, director general of the Department of Commerce and Supply Management.

The 23rd meeting of the Central Monitoring and Evaluation Committee two weeks ago had decided to seek the plan from the Commerce Ministry for making the supply of essential goods smooth and controlling price hike during the festive season.

The PEs have been opening fair price shops during festivals for the last few years to control problems like price hike, food adulteration and artificial shortage. Fair price shops are considered good shopping destination for low income customers, according to the Commerce Ministry.

As per the plan, the outlets will come into operation from mid-September. Last year, the government entities had sold daily goods at discounts ranging from Rs 2 to Rs 15 per kg on products like salt, sugar and rice.