Kathmandu Post

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Shoppers turn to local market after SDF implementation

BUTWAL, SEP 18 -
After the Customs Department strictly implemented the simplified declaration form (SDF) at major custom points, people are increasingly doing their shopping in the local market instead of crossing the border into India.

As per the Customs Act, one has to pay customs duty by filling up the SDF while importing goods worth Rs 100-Rs 5,000. But this was rarely practiced earlier.

According to the Butwal Chambers of Commerce and Industry, the town has witnessed a 30 percent surge in transactions as the people have been discouraged from crossing the border to purchase cheaper goods.

Sarita Shrestha, a local resident who moved to the town from Gulmi 13 years ago, chose the local market for the first time to shop for the Teej festival a few weeks ago. She is also planning to purchase the necessary goods for the upcoming Dashain festival in the local market.

“The goods here have become cheaper now compared to Indian towns if we add the costs related to customs duty and travel,” said Shrestha. Mina Rasaili from Deepnagar also has a similar experience.

She used to visit the Indian market every alternate week to purchase essentials and cosmetic goods, has also started shopping in the local market after duty was imposed on imports.

This policy has brought happiness to local businessmen. Rajendra Prasad Dhwoju, secretary of the Butwal Chamber, said the market was witnessing a boom with a growing number of people intending to shop in the local market.

“The market had seen a greater number of new customers during festivals like Teej this year,” said Dhwoju who is also proprietor of Sapana Sari Centre at Butwal.

There is a tendency among the people of bordering districts including those from Rupendehi to go to bordering Indian towns to purchase goods like sugar, tea, spices, edible oil along with clothes at cheaper rates.

Such a tendency was leaving Butwal bazaar almost deserted in the past. The situation has now been reversed. Tanka Prasad Pokharel, president of the Rupendehi Merchant Association, said that sales of edibles, electric goods, fancy and cosmetic products and readymade garments surged after implementing the simplified declaration form.

“There are still many people who go to India for purchasing goods as they have the illusion of goods being cheaper there,”  said Pokharel.

Among the edible goods, sugar is still expensive in the Nepali market by Rs 15 per kg. However, other goods produced by multinational companies are cheaper in the domestic market than in India.

Similarly, many products of Uniliver and Dabur such as Horlicks, Boost, Tulsi tea, Dabur Chyawanpras, Cerelac, Lactogen milk products, and Dabur Lal toothpaste are available at cheaper prices in the market.

Similarly, Dabur Amla Oil, Lifebuoy soap, Vim bar soap, Fair and Lovely cosmetic products, Lux soap, Sunsilk shampoo, Clinic Plus shampoo, Colgate Cibaca, Lyril soap and Everyday milk are cheaper in the domestic market. Likewise, fabric products including cotton sari, woollen cloth and shirt and pants are also up to 15 percent cheaper in the market compared to India.

Kopila Poudel, proprietor of Srijana Store, said various business associations should do the needful to create awareness about the changed context to encourage shopping in the domestic market.

 

Posted on: 2011-09-19 08:56

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