The Chinese branch of an international noodle makers association
may be banned as an illegal organization after becoming tangled in
accusations of operating price-fixing.
A north China lawyer has appealed to authorities to investigate
the legitimacy of the Chinese branch of the International Ramen
Manufacturers Association (IRMA) after the latest jump in instant
noodle prices.
Hao Jiguang, from Hebei Province, has appealed to the National
Development and Reform Commission (NDRC) to investigate whether the
Chinese subsidiary of the IRMA has illegally manipulated prices of
one of the nation's most popular dishes, the Beijing News
reported.
He also appealed to the Ministry of Civil Affairs (MOCA) to ban
the branch if it is recognized as an illegal civil
organization.
MOCA notified Hao on Monday that it found no registration
information of the branch, which could indicate its legal
status.
Media reports have accused the Chinese branch of the IRMA of
participating three times in talks about prices among a number of
major domestic instant noodle producers.
Meng Suhe, an official with the IRMA branch, has said the
instant noodle makers, who hold a combined 95 percent share of the
domestic market, made a collective decision to raise prices due to
increased costs of raw materials.
It was acceptable for industries to raise prices if costs rose,
but they should not meet in private and collude on price hikes,
said Qiu Baochang, a legal consultant for the China Consumers'
Association.
China's Price Law and the NDRC anti-monopoly regulations ban
companies from colluding with each other to manipulate prices.
Qiu said the collective decision might have breached the Price
Law and violated the rights of consumers.
The price of every packet of instant noodles has increased by an
average 20 percent, sparking widespread consumer complaints and
more public concern over rising food prices across the country.
The low-end instant noodles cost only one yuan (13 US cents) per
packet before the price change.
The NDRC said on Aug. 2 it has ordered local pricing authorities
to launch investigations into prices of major food products,
including grain, edible vegetable oil, instant noodles, and
pork.
China makes 51 percent of all instant noodles in the world with
more than 46 billion packets produced last year.
(Xinhua News Agency August 9, 2007)
