Nepali traders hike food prices riding the festive wave
As the festive season nears in Nepal, prices for essentials like rice, edible oil, lentils, and legumes have surged. Retailers predict that high food prices will persist throughout Dashain and Tihar. Despite stable prices in India, opportunist traders in Nepal have raised prices, taking advantage of weak market monitoring. For example, while India raised the import tax on edible oils, Nepali traders increased prices without corresponding local tax hikes. Consumer rights activists are urging the government to inspect large traders and stabilize prices during this high-demand period.
As the festive season approaches, prices of daily essentials like rice, edible oil, legumes, and lentils have increased.
Retailers say food prices are expected to stay high throughout Dashain and Tihar, Nepal’s biggest festivals.
In Nepal, food prices are heavily influenced by the Indian market. Even though prices have not increased in India, some opportunist traders have been taking advantage of the poor market monitoring to increase prices under different pretexts.
For example, on September 14, India raised the basic import tax on crude and refined edible oils by 20 percent. Nepali importers seized this opportunity to hike their prices even though Nepal had not raised the import tax.
Dhurba Prasad Adhikari, joint treasurer of the Nepal Retailers Association, said Nepali wholesalers and retailers have already raised the prices.
“It has been a week since edible oil price was increased by Rs20 per litre and the price is expected to increase further as the festive demand kicks in,” he said. But he admits that market rumours and weak inspections make prices more unstable, especially during the festive season when demand is at its peak.
According to the association, sunflower oil prices have increased from Rs190 to Rs210 per litre. Likewise, the per litre price of mustard oil has gone up from Rs350 to Rs370.
Adhikari, who operates Adhikari Khadya Store, said the price of edible oil is expected to increase in Tihar due to high demand.
Retailers said strict inspections in large trading houses could help stabilise prices during the festive season.
Consumer rights activists say the current government inspections of the market are just for show and will not address issues related to price, quality, and quantity.
“The government’s market inspection body is looking only at retail markets. They, too, know this will not change prices unless they also inspect the warehouses of large importers and traders,” Adhikari said.
He said that the government inspecting body needs to check on the stock of goods held by traders.
According to retailers, even with the new rice harvesting beginning soon, prices of the staple have increased by Rs100 kg for a 25 kg bag.
Even the price of sona mansuli, which normally remains at Rs60 per kg, has now inched up to Rs70 to Rs75 per kg.
Rice prices, however, are expected to decline after the arrival of the new harvest.
Sugar is now being sold at Rs120 per kg and expected to rise further, retailers said.
As private sector traders say they are out of sugar stock and both state supply utilities—the Salt Trading Corporation and the Food Management and Trading Company—have delayed opening the tender to import the sweetener, according to market insiders, the price is expected to cross Rs160 per kg by Tihar.
However, retailers said the jeera (cumin seed) price has declined. But the price could still go up in the next two weeks.
Last year during Dashain, the price of jeera, an indispensable spice, spiked from Rs1,400 to Rs1,500 per kg. The price has declined, and it is being transacted around Rs950 per kg this year, Adhikari said.
Prices of lentils and legumes tend to fluctuate based on international production, but have remained high in recent months.
According to the association, pulses have reached Rs180 per kg from Rs175 per kg.
Adhikari said food prices have been increasing every year. “The rice prices are so high that people are buying only what they need in smaller quantities,” said Adhikari.
“The government needs to intervene in the market, particularly inspect the large traders engaged in unscrupulous market activities,” said Prem Lal Maharjan, president of the National Consumer Forum. “Proper inspection will help bring the prices down. It will also help the government bring in more revenues,” he said.
As the government has started operating fair-price shops across the country, there might be some relief for consumers, Maharjan said. “But such subsidised shops should be operated year-round to control market prices.”
Source Link : https://kathmandupost.com/money/2024/09/24/nepali-traders-hike-food-prices-riding-the-festive-wave
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