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Various youth groups have been demanding the revoking of taxes on menstrual hygiene products. Right now, 13 percent VAT is added to the price of menstrual hygiene products in Nepal, where accessibility and affordability of these products are low. Local manufacturers fear the removal of such taxes may flood the market with imported products.

Punit Kumar Sarda, CEO of Sarda Group, the parent company of Nepal’s first menstrual hygiene product manufacturer, Jasmine Hygiene Products, talked to Priyanjali Karn of ApEx on the manufacture and the taxation issues over sanitary products.

Can Nepal’s menstrual hygiene products alone meet local demand?

Yes, the local manufacturers of menstrual hygiene pads can meet the demand of all women and menstruating individuals in Nepal. We don’t need to depend on imported products.

The government hasn’t increased taxes on these products as it acknowledges that menstrual hygiene products are basic needs. The government has also been providing a 95 percent subsidy on raw materials needed to locally manufacture menstrual hygiene products.  

Why have the prices of menstrual products been hiked if the VAT hasn’t been increased?

Imported products don't disclose the maximum retail price. That allows retailers and local shops to hike prices as consumers don’t have direct access to manufacturing companies. The companies themselves haven’t increased the prices. 

The local manufacturers, however, have to mention the MRP, manufacture date, expiration date, name, and company contact on the packets of menstrual products and it is not easy for retailers to increase prices.

What would happen if the VAT on menstrual products is removed?

If the government revokes VAT, which is paid at the point of sale, the local manufacturers of menstrual hygiene products will be at a loss. They will still need to pay their taxes. But the retailers, on the other hand, will make more profits. This will lead to the downfall of local manufacturers as imported products will then flood the market.

Even if the government removes the VAT, the cost of a packet of pads may come down from Rs 40 to Rs 20, for example. But then we are assuming that those who couldn’t spend Rs 40 will be able to spend Rs 20, which may not be the case.

Also read: What if… sanitary pads were made free?

Why are menstrual hygiene products still branded as luxury items instead of essential items?

Menstrual products aren’t considered luxury products. Everyone knows menstrual products are essential and that is why the government is trying its best to supply them for free in schools and help local manufacturers minimize prices, mainly by supporting import of raw materials.

Why are most Nepali consumers more inclined to imported menstrual hygiene products over local one?

It is a stereotypical belief that products made in Nepal are not as good as imported ones. But if they weren’t good, why would Jasmine Hygiene Products still be selling after 15 years? We sell a product whose quality matches that of imported pads. Like any other company, we do have a price range, starting with the minimum of Rs 40. All products are of good quality and do the job just fine.

In the past few decades, major rivers in Kathmandu valley like Hanumante, Bagmati and Dhobikhola have been regularly overflowing during the monsoon season. Each year, the floods damage an immense amount of property, and sometimes people die too. In the past few years, the government has built embankments in many places to limit the damage. But they seem to have had limited impact. In this context, Pratik Ghimire of ApEx interviewed Bishal Nath Upreti, geologist and president of Nepal Center for Disaster Management.

Bishal Nath Upreti

Kathmandu apparently witnessed a record rainfall this monsoon. But can the flooding of homes here solely be attributed to that?

Rivers overflowing after rainfall and urban flooding of Kathmandu are two different things. It is monsoon so of course it will rain. And whenever it rains, Kathmandu is flooded because of its poor drainage system. This time, the rivers overflowed and residential and slum areas near them drowned.

So why are our rivers overflowing?

Simply because we have narrowed the rivers’ path. The rivers in Kathmandu flow down from the surrounding hills and it rains quite a lot there compared to the valley. But when the water doesn’t find its natural course, it sweeps away everything in its path. Eventually, the settlements near the river get drowned. Although we can see the government building embankments on many corridors, they are not enough. Riverbeds have been shrunk from 500 meters to 10 meters.

What then is the solution?

The solution is to allow our rivers to follow their natural course, which is now impossible. There are now settlements on the banks, and no one can even think of displacing the residents. So I don’t think there is a quick fix solution to prevent the overflow of rivers in Kathmandu. We have seen parts of Kathmandu submerge. Kathmanduites will have to face this problem for a long time as it is a manmade disaster, not a natural one.

How deep are the rivers of Kathmandu these days? Do they have natural depth?

Since water in the valley comes from the hills, it carries some mud. It is a natural process. Additionally, sewage from all of Kathmandu mixes with the rivers. They might also have a minimal impact on the depth of rivers, but I don’t think depth is the problem. Breadth is what matters.

As you said, we have a poor drainage system. Can we improve it?

A couple of centuries ago, the underground canals were almost eight feet in diameter. In European countries, trucks can still run through underground drainage canals. But over the decades, the diameter of our drainage canals have been brought down to two or four feet. Moreover, all the sewage passes in the same drainage, so there is no place to bypass collected water. This is an engineering problem. We can resolve it by rebuilding our drainage system, but again, I don’t think anyone is interested in this. I have repeatedly talked about this with policymakers and governmental engineers, but to no avail.

After the promulgation of the political party-related ordinance, any faction of a party represented in the House of Representatives can register a new party if it has 20 percent members in either the mother outfit’s Central Committee or the Parliamentary Party. This has not only changed the dynamics in CPN-UML but also Janta Samajbadi Party Nepal (JSPN). Although the ordinance now faces a legal challenge, a split in JSPN could invite an unexpected situation in Madhesi politics as well as the government. Also, Madhes now has other emerging political forces which, to some extent, could affect the results of upcoming elections. Pratik Ghimire of ApEx interviewed political analyst and expert on Madhes issues Tula Narayan Shah.

How do you assess the relation between JSPN and the Deuba government?

Although there are two distinct factions in JSPN, both have officially supported the Deuba government by voting in favor of his confidence motion. But to date, the coalition formally includes only the Upendra Yadav faction. So, this side will, for sure, join the government with a respectable number of ministries. 

Regarding Mahanta Thakur’s faction, it is fine to support the government from outside, but accepting ministerial berths could be seen as adopting double standards and acting opportunistically. Yet, I can't deny the possibility of their joining the government. We need to wait for further political developments as nothing in politics is impossible. So, JSPN as a whole has a pretty decent relationship with the Deuba government.

What is more beneficial for Madhes? A united JSPN or two or more parties?

Before 2008, the Madhesi parties were in the periphery. They later formed an alliance and emerged as a potent force in national politics. Until these parties make their presence felt, their issues won’t get national attention. So I would prefer a unified JSPN as it will benefit the party and somehow the society, and their agenda is almost the same. But the current political timeline does not suggest a reconciliation between the factions. We should not forget the schooling, orientation, and culture of the two factions. Yadav’s side is like a ‘mini-Maoist’ party whereas Thakur’s has a ‘mini-Congress’ feel. 

Politics is always envisioned in the presence of political parties, but if we look at them through the lens of caste, we often see that be it in the Madhes or the hills, the elite caste rules over lower ones. And the presence of two castes in JSPN leadership suggested a split was inevitable. In 2008, when Yadav’s party was emerging, Thakur showed up because the upper caste population did not accept Yadav’s leadership. This angle might be unpopular nonetheless it’s a vital one. 

How does a split affect the electoral prospects of Tarai-Madhes?

If you look at figures from past elections, whenever alliances have been formed ahead of elections, the Nepali Congress has been in trouble. For instance, in the last election, Congress performed well at the local level because no alliance existed, but in the parliamentary election, Congress lost out.

Many people saw the recent political party-related ordinance issued only for the benefit of Madhav Kumar Nepal, but Deuba for sure understood the situation in JSPN. He knows that the more the Madhesi parties split, the more the NC can gain electorally, and so he hit two birds with one stone. 

Is CK Raut’s party still relevant in Madhes?

CK Raut’s Janamat Party is a supplementary force in Madhesi politics—it has a different political culture to other existing parties. He is establishing good relations between voters, cadets, and leaders. He has been pushing himself in an organized way with specific roadmaps for reforms in politics, society, and the government. Almost all current political leaders of the Madhesi parties are aged. They will be in mainstream politics for a maximum of two or three elections, but CK is working to establish himself in the long run—he could be in the game for the next six to seven elections. Madhesi people have glamourized Raut for two reasons: his academic degree and his devotion—he left his job in the US to come to Nepal. So he represents a new hope for Madhes. He is capable and qualified too. 

But demographics work against him—he is supported by the young blood (those born in the 90s) who are out of the country and working in the Gulf. The older and larger voting population still has faith in existing parties. Generally speaking, parties not born of large struggles get involved in their first election just to make themselves visible. In the second election, they divide the votes and make others lose. Only in the third election do they really do well. 

What if Raut’s party wins a respectable number of seats in upcoming elections? Would he revive his separatist idea?

Although his party winning many seats is an unlikely prospect, it would be a progressive thing if it happened. Regarding the political agenda, he brought both hope and threat, at the same time, but he has already accepted the legal political course of Nepal. But Kathmandu sees every Madhesi political party as a separatist. The reality is: His previous agenda was never a discussion point in Madhes. He was young, and everyone knew he did this to gain visibility. There was a situation in which the Madhesi people ignored Raut’s agenda and enjoyed his personality, but the hill population ignored his personality and talked about his agenda. My view is that Raut is now a proper politician and an important and needed figure in the mainstream politics of Madhes. 

For decades now, imported aerated drinks and offerings from multinational companies (MNCs) have ruled the Nepali market. As Nepal struggles to produce/manufacture even the most basics consumer goods, the market for soft drinks and bottled juices is inevitably captured by the MNCs.

Even so, a few homegrown players are coming up. Established in 2017, Singapore Beverages Nepal Pvt Ltd is one such company, which has released a host of Nepal-made bottled drinks and is gradually trying to penetrate the rigid market controlled by international companies.

Aashish Sharma, founder and managing director of Singapore Beverages, talks to Sunny Mahat of ApEx on the company’s plans and possibilities.

As “Jeeru” is your flagship product, let’s start by discussing the concept behind it.

After we started the soft drinks manufacturing company, we realized our other drinks like the Cola, Lemon, Lemon and Lime, Orange were just replacements for products that were already in the market. We wanted to offer something different and something indigenous and known to Nepali palates. We did some research and checked global trends. That’s when we came across the idea for Jeeru. Its main ingredients are jeera (cumin seeds) and black salt—something readily available in most Nepali kitchens and used for both cooking as well as medicinal purposes. We felt this drink would connect to a large segment of Nepali customers and it is already doing so. We have exported Jeeru to the US as well.

With the success of Jeeru and other products to follow, do you think home-grown products like these will ever displace international brands?

This is a big challenge for us. It’s like an ant fighting a mammoth. A four-year-old company is competing against companies that are over 150, have a heritage of their own and are synonymous with cola drinks. Yet we will try.  

We all know of the country’s trade deficit and its dependency on foreign brands. We need to start supporting Nepali brands that can displace MNCs. Take Indian brands like Mahindra, Bajaj and Tata for example. They were born in India and are now global companies. We need that belief in our homegrown products and the belief that our local products can compete against imported ones. We need ‘Born in Nepal’ companies to represent the country abroad. We have the ability but not the platform. 

What measures are you taking to protect the environment as a manufacturing company?

We do whatever is possible to protect the environment. We are using recyclable items wherever possible and promote recycling of our used bottles. Carbonated drinks need to be packed in pressurized containers and we have our limitations on packaging materials, but we are still trying to find greener alternatives to them.

How has the government supported your enterprise?

We have been enunciating this for a long time. It’s simple, you just can’t compare a newborn to a healthy grownup. In Nepal, ironically, a new homegrown company like us are put on the same category as a multinational company which has been operating worldwide for decades. How does that help us? 

We are made to follow the same regulations and pay the same taxes. Basically, we stand at the same podium as an MNC. For us to survive, we need a lot more support than what the government is giving to us right now.

How is the customer perception of local products in the market? Has it changed in recent times?

There’s this thinking among Nepali customers that any ‘local product’ has to be of inferior quality. This thinking is very rigid in areas dominated by the MNCs. Nepali people are just not ready to accept that a local product can be of international standard. In an import-dependent country like ours, this perception has been controlled by international brands. I think this is because of the hypnotic effects of massive marketing and brand activation that the MNCs do. They convince consumers that their product is good and then the consumers start thinking all other alternatives are inferior. 

We request all consumers to at least try our products. Drink the product, not the Brand! We also appreciate media support, in instance in the form of the ‘Made in Nepal’ campaign the Annapurna Media Network is currently running.