Purified Drinking Water Supply Crisis in Birendranagar Amidst MRP Dispute

Surkhet. It has been about 10 days since purified drinking water (jars and bottles) has not been available at Ashoka Hotel in Birendranagar. The jar water had run out earlier. With a few cartons (bottles) of water in stock, it ran for a few days. 'Purified water did not arrive during Dashain. It is the festive season, people have stopped drinking tap water,' said Chintamani Sharma, the operator of the hotel, 'Due to whom is the water shortage? It must be resolved immediately. There is a severe shortage of drinking water in the market.' He heard that the industrialists stopped production after the administration asked to reduce the maximum retail price (MRP) of purified water. 'The atrocity committed by water industries during the festival on a serious issue like the supply of essential drinking water is condemnable,' he said. Like him, almost all small and large hotels and shops in Birendranagar, the capital of Karnali Province, are facing a severe shortage of purified drinking water. Sources say that Chief Minister Mangal Bahadur Shahi has taken an interest in this matter after purified water (jars and bottles) did not reach the Chief Minister's residence. 'The Chief Minister himself complained to us that water did not arrive at the Chief Minister's residence,' a drinking water industrialist told Ratopati. What is the MRP dispute? There are 7 purified water industries in Birendranagar. All these industries have stopped production since October 17. According to Krishna Acharya, operator of Madhya Paschim Water & Beverage Industries Pvt. Ltd. located in the industrial area of Birendranagar Municipality-12, production was stopped because Chief District Officer Mahendrakumar Sapkota tried to control the MRP. On October 16, a letter was received from the District Administration Office calling the purified drinking water producing industries for a discussion. All industrialists, representatives of the Chamber of Commerce and Industry, heads and representatives of security agencies, and officials of the Consumer Forum were present at the meeting. In the meeting, the Chief District Officer suddenly tried to discuss the issue of MRP. In 2019/2020, the market monitoring subcommittee (under the Labor and Consumer Interest Committee) had prepared a report. At that time, in order to prevent unhealthy competition in the market and to prevent industrialists from migrating, a proposal was made, in which the MRP price within the Kathmandu Valley was Rs 16 for a bottle and Rs 47 for a jar. Outside the Kathmandu Valley, it was Rs 60 for a jar and Rs 20 for a bottle, but in Surkhet, production was done by setting the MRP at Rs 25 for a bottle and Rs 70 for a jar. In the discussion on the 16th, the Chief District Officer (CDO) said that the old rate should be maintained. 'Is it justified to say that the rate of 2019/2020 should be the same in 2024?' Acharya said, 'We repeatedly requested the CDO. Due to the excessive price increase, petrochemicals, diesel, petrol, transportation fares, and workers' wages have all increased. Therefore, it is not possible to produce and provide service at the old rate.' According to him, the price of raw materials was Rs 150 before, and now it has reached Rs 400. In such a situation, the industries are on the verge of closing down on their own. Since no agreement was reached in the meeting on the 16th, the CDO signed the decision book without setting the price. The industrialists did not sign. However, in the decision that came on WhatsApp at night, a letter came with instructions to implement the old rate, otherwise action would be taken. 'The industries are already on the verge of closing down, and if we produce at the old MRP, we will incur more losses, so we stopped production from the 17th,' Acharya said. Even though the MRP price in Surkhet is Rs 25 for a bottle and Rs 70 for a jar, when it goes to the market, it is sold for Rs 16 for a bottle and Rs 47 for a jar. Shops sell at higher prices by adding electricity, room rent, and refrigerator costs. By the time it reaches the consumers, bottles of water are sold at Rs 25 (cold Rs 30) from small shops and up to Rs 50 in big hotels at their own discretion. Jars are sold for Rs 80-90. Tap water is not reliably available in Birendranagar. Most consumers have started relying on jar water, but there is arbitrariness in jar water. About 5,000 jars and 2,500 cartons of water are sold daily from the 7 water industries in Surkhet. According to statistics, about 80 vehicles, 160 direct jobs, and a total of about four and a half hundred employees work in the water industry sector. CDO Backed Down, MRP Not Reduced Finally, Surkhet's Chief District Officer Mahendrakumar Sapkota has backed down from his directive. According to sources, it is said that a verbal agreement was reached in the discussion between water industrialists and administration officials on Sunday afternoon that purified drinking water will be bought and sold according to the old MRP. However, the administration has not made its official stance public on this matter. Although CDO Sapkota tried to control the MRP, questions are now being raised about why he backed down. 'Why did he suddenly try to reduce the MRP, and why did he revert to the old MRP? This is the main question,' says an official. Talking to Ratopati, Sapkota said that sales and distribution should be done in the market according to the MRP. 'I cannot say anything about the MRP, the price is decided by the industrialists themselves,' he said, 'However, it should not be sold at a much higher price than the fixed price in the market.' On the other hand, Krishna Acharya, president of the Water Industry Association, Surkhet district, said that there was an agreement on 3 points. 1. Each industrialist will be able to set the MRP of their product themselves, and purified drinking water should be bought and sold in the market according to that MRP. 2. While producing purified drinking water, all production-related protocols and quality standards set by the concerned body will be fully complied with. 3. If the concerned body demands justification for the price regarding the MRP, official bills and documents that reveal it will be submitted. Acharya also said that with this agreement, the industries that were closed will start producing purified drinking water from Monday. He also stated that shops and businesses should sell bottles for Rs 25 and jars for Rs 70 to consumers. 'However, hotels and restaurants will sell according to their service,' he said. He also stated that according to clause (j) of sub-section (2) of section 6 of the Consumer Protection Act, 2019 (2075 BS), the producer industrialist has the clear legal right and responsibility to determine the maximum retail price (MRP) based on the cost, tax, and quality of their production and put it on the label.