1) They charge so high because there are few players with so many internal contacts. So this is a monopoly or oligopoly market just taking advantage of the system. I mean it is hard because of these people. These people lobby to keep such systems in place.

2) It is unreasonable for any government, especially in a developing country to make so many demands of the illiterate and poor population. If such a situation continues, poor people will never be able to manufacture anything.

This creates a social division almost alike slaves and masters. Alike the Soviet System of the Elite Aristocrats, Their friends in rich, non-competition businesses and the government and the serfs and peasants.