Dispute Grows Between Government and Traders over Mandatory MRP Implementation

The government’s move to enforce mandatory Maximum Retail Price (MRP) labeling on all consumer goods has triggered growing tensions with the business community. While authorities remain firm on strict enforcement backed by penalties, traders appear hesitant and critical of the implementation approach.

Starting from the fiscal year 2025/26, the government mandated that MRP, inclusive of taxes, must be clearly stated on all products, in line with Section 6 of the Consumer Protection Act, 2018. However, traders have raised serious concerns over this policy, citing lack of clarity, weak coordination, and insufficient groundwork.

Why Are Traders Opposing MRP?

Devendra Bhakta Shrestha, President of the Nepal Food Grocery and Wholesale Entrepreneurs Association, stated that the challenge intensified after the government expanded MRP requirements beyond the previously limited list of 29 essential goods to include all products.

“MRP can be set for industrial and imported goods. But how can we fix MRP for items directly purchased from farmers?” Shrestha questioned. “Farmers cannot issue invoices, making it difficult for us to determine a fixed price.”

He also noted that the law still feels new to many in the business sector and that the lack of proper awareness is creating confusion. According to him, coordination is particularly lacking in sectors such as gold, handicrafts, textiles, street vendors, and large shopping malls. Furthermore, the absence of clear guidelines regarding VAT bills and profit margins for imported goods has left traders in a state of uncertainty.

Government Determined to Enforce

The Department of Commerce, Supplies, and Consumer Protection insists that MRP enforcement is essential to safeguard consumer rights. The department’s Director General, Kumar Prasad Dahal, said that market monitoring has been intensified to ensure compliance, warning that traders who fail to label MRP will face penalties.

Dahal emphasized that without MRP, the authenticity and legal status of goods may be questioned. He added that MRP labeling is vital to bring pricing transparency and encourage fair competition in the market.

According to current regulations, products sent to market for sale must carry labels including six specific details such as the price, batch number, and date of production. Still, traders argue that inconsistent transportation costs, determined by competition, road conditions, seasonal factors, and fuel prices, make it difficult for producers or importers to set a uniform MRP.

“We are not against MRP in principle,” Shrestha clarified, “but the government must first create a practical environment that makes implementation easier for everyone.”