Editorial
Arbitrary newsprint price hike
A blow to newspaper industry
The impetuous raising of price of newsprint by local manufacturers goes down as a bad example of market manipulation in absence of any competition. Clearly, the manufacturer has cashed in on its hold on the monopoly market. The cost of newsprint accounts for 50 percent of the total cost of production of a newspaper; therefore, the price hike has actually struck at the core of the industry. We fail to understand when the previously imposed 30 percent duty on imported newsprint has been drastically reduced by the government, why must the local manufacturers take such arbitrary decision on grounds that are not justifiable. We protest the move with the strongest of words.
The manufacturer has claimed that the raw materials and transportation costs have gone up in recent times but to use that pretext to increase the price by 20 percent at one go is totally unacceptable. To be candid, this time around price of local newsprint has gone beyond the purchasing ability of most buyers.
We believe it is time for the government to intervene to save the newspaper industry, which contributes to informing and educating the common masses on important issues. With general elections knocking at the door, it is obvious that newspapers will have to play an active role to keep the people informed, as newspapers are integral to promoting free flow of information and right to information (RTI). If newspapers keep closing down because of high cost of newsprint, the purpose of RTI will be substantially defeated.
We strongly feel the tendency to manipulate the market on the part of the few manufacturers should be reversed through providing manufacturing licence to other entrepreneurs. In this regard government representatives should hold talks with the newspaper publishers to obtain first hand knowledge about the industry. But meanwhile the manufacturer should be persuaded to withdraw the freshly increased price.
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