A joint committee focused on inspection and verification has initiated random market checks today due to a notable increase in the prices of beer, cigarettes, pan masala, and other alcoholic beverages nationwide. This rise in prices precedes the forthcoming implementation of revised excise and Goods and Services Tax (GST), leading to growing suspicions of hoarding practices.
In Thimphu, the cost of a carton of canned beer, which was approximately Nu 1,400 three weeks ago, has surged to over Nu 1,600. Similarly, a box of cigarettes containing 20 packets has seen its price rise from Nu 2,000 to Nu 2,600. The Competition and Consumer Affairs Authority (CCAA) and the Department of Revenue and Customs (DRC) released a public notice on Friday, indicating that these price escalations might be attributed to domestic distributors or retailers, whereas local manufacturers have claimed that their prices remain unchanged.
Some shopkeepers have observed that the price hikes began shortly after the festive periods of Dashain and Diwali, along with the introduction of an interim quota system on imports and distribution of controlled goods in July. This quota was implemented by the DRC as a measure against hoarding.
Singyel Dem, a shop owner in Thimphu, stated, “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, mentioned, “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.”
The impact of these price increases is being felt across various districts, with consumers expressing frustration over the burden on their finances. Nim Dorji, a resident of Thimphu, remarked, “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 is based on last year”s supply and demand data and should not be blamed for the current price hikes and shortages. The CCAA reported that it has received one formal complaint regarding inflated beer prices as of Friday, and it continues to receive calls on its toll-free number about similar instances involving controlled substances. The authority is encouraging the public to report such cases.
Kinley Bidha
