A joint inspection and verification committee is conducting random market checks starting today following a sudden surge in the prices of beer, cigarettes, pan masala, and other alcoholic beverages across the country. The hikes come even before the implementation of the excise and Goods and Services Tax (GST). With the revised taxes set to take effect in January next year, suspicions of hoarding are growing.
In Thimphu, a carton of canned beer that costs around Nu 1,400 three weeks ago now sells for more than Nu 1,600. Likewise, a box of cigarettes containing 20 packets has jumped from Nu 2,000 to 2,600.
The Competition and Consumer Affairs Authority (CCAA) and the Department of Revenue and Customs (DRC) issued a joint public notification on Friday stating that price escalations could be originating from domestic distributors or retailers. Additionally, local manufacturers said they have not changed their prices.
Some shopkeepers say the price hikes began soon after the festive months of Dashain and Diwali and the implementation of the interim quota system on imports and distribution of controlled goods in July this year as an anti-hoarding measure by the DRC.”
Singyel Dem, a shop owner in Thimphu said, “I heard that the manufacturers haven’t increased their prices, but here the distributors and wholesalers are selling at higher rates. Earlier, we could place as many orders as we wanted, but now we are only allowed five cartons of each brand of alcohol.”
Tika Ram Powdyel, another shopkeeper said, “Before, we used to sell a box of Navy Cut cigarettes for Nu 2,050, but now we have to sell it for Nu 2,600. That’s an increase of about Nu 600.”
Further, price hikes are being felt across other districts. Consumers say this sudden price hike is hitting their wallet hard.
Nim Dorji, a resident of Thimphu said, “A can of beer that used to cost between Nu 70 and 80 now sells for Nu 100 to 110 in some areas. We don’t know whether it’s the manufacturers, distributors, or the retailers who have raised the prices, but it’s the consumers who end up bearing the burden.”
However, DRC officials clarified that the quota system was based on last year’s supply and demand data and is not the cause of the price hike and shortage.
The Competition and Consumer Affairs Authority confirmed that it has received one formal complaint on inflated prices of beer as of Friday and it keeps receiving calls on its toll free number complaining about similar cases of controlled substances. The authority is urging people to inform them of such cases.
Kinley Bidha
Edited by Kipchu
