Monday, May 4, 2026 03:30 PM

PMO–Finance Ministry rift over MRP stalls customs, billions of goods held up

Biratnagar, May 4: A week-long deadlock in customs clearance has left containers worth billions of rupees stranded at customs yards and on Indian roads after disagreements between the Prime Minister’s Office (PMO) and the Ministry of Finance over the mandatory implementation of Maximum Retail Price (MRP) at customs points.

The government enforced the MRP requirement from Baisakh 15, halting clearance at border checkpoints across the country. Although a 15-day preparation period was given through a notice issued on March 30, traders had warned that the policy was impractical and demanded alternatives.

To address operational difficulties, the Ministry of Finance and the Customs Department proposed a middle-ground solution allowing importers to declare MRP at the border and label goods later. However, the Prime Minister’s Office reportedly rejected this proposal, further deepening the crisis.

Business operators say around 200 containers are stuck at Biratnagar customs yard, 100 at Indian yards, and more than 150 along highways. Customs agents warn that this has not only affected revenue collection but also increased risks of damage and theft.

Customs officials report that while industrial raw materials are still being processed, clearance of commercial goods has been completely halted, reducing daily revenue collection by about 25 percent from the target. At the Mechi customs point as well, goods without MRP labels are not being cleared, though coal and clinker imports remain unaffected.

Importers argue that applying MRP labels to all goods at the point of import is impractical and have urged the government to reconsider the decision. They warn that the policy could disrupt supply chains and destabilise markets.

While the Finance Ministry had attempted to introduce a workable solution, the lack of consensus with the Prime Minister’s Office has blocked implementation. Business groups say this internal disagreement within the government is now directly affecting trade operations and the broader business environment.

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