Businesspeople voice complaint against truck cartel

Truckers' federation launch protest against increasing use of Indian trucks in Nepal

Himal Press 18 Dec 2022
Businesspeople voice complaint against truck cartel

KATHMANDU: Trucking entrepreneurs are enforcing a cartel despite the government’s claims that such syndication ended five years ago.

The Federation of Truck Transport Entrepreneurs Nepal has been enforcing a queue system across the country instead of promoting fair competition among entrepreneurs. Businesspeople have been protesting against the decision for the past many years, but to no avail.

Om Prakash Sharma, president of Birgunj Chamber of Commerce and Industries, said trucking entrepreneurs have raised fares in an arbitrary manner and further tightened the queue system. “Not only has the federation increased transportation fares. We are also facing problems like not getting transport when needed. They are also creating problems in loading and unloading of cargo,” Sharma added.

This exorbitant fare has increased the cost of production for businesspeople. As the cost is ultimately passed on to the consumers, businesspeople say the price of consumer goods can come down if the cartel is removed.

Rajesh Kumar Agrawal, vice president of the Confederation of Nepalese Industries (CNI), also said both businesspeople and consumers are suffering due to a lack of competition among trucking entrepreneurs. “Consumers are suffering as some people are preventing competition in the market to serve their vested interests,” he added.

Because of the cartel of truckers, it is taking three to four days for the transport of cargo which would earlier take only one day, Agrawal said.

According to businesspeople, these cartels are not only enforcing queue systems but are also preventing businesspeople from selecting the time and date for the transport of cargo. The federation is also determining the transport fare itself. Such is the power of cartels that businesspeople cannot transport goods even in their own trucks.

Trucking entrepreneurs launch protest
Trucking entrepreneurs have launched protests, stating that Indian truck operations are eating away at their business.

They have focused their protests at two major customs points of the country – Birgunj and Bhairahawa.

The Lumbini Province Committee of the federation Friday organized a protest program in Bhairahwa. Several associations of cargo transporters under the federation participated in the protest program.

The federation has also been saying that ‘overloaded’ Indian trucks are damaging Nepali roads and bridges. They have demanded that the local administration effectively monitor the loads carried by Indian cargo trucks.

Lokraj Pokharel, senior vice president of the federation, said Nepali transport entrepreneurs cannot compete with Indian entrepreneurs who are offering lower fares.

Published On: 18 Dec 2022

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